Enforcement Tightens, e‑Certs Ahead, and Critical Minerals Deals: Your Week in Trade Compliance
NEWSLETTER | Trade Insight AI
New EU Tariff Classification Tool Prioritizes BTI-Ready, Defensible Decisions
Trade Insight AI • February 5, 2026
Trade Insight AI has added European Union tariff classification, built for the EU’s distinct, decentralized regime across 27 Member States. The system targets BTI-ready, legally defensible outcomes by grounding codes in Section, Chapter, and Explanatory Notes and avoiding overreliance on US-style GRI 3(b)/essential character reasoning. For compliance teams, this supports consistent, audit-ready decisions across jurisdictions, with EU-focused content coming on CN interpretation, BTI research and lifecycle management, and cross-Member State consistency.
Tariff & Classification Intelligence
CPSC Identifies 600 HTS Codes Ahead of 2026 e-Cert Mandate
STR Trade Report •February 6, 2026
The CPSC has posted a non-exhaustive list of about 600 HTSUS numbers likely to require electronic certificates of compliance, ahead of eFiling requirements effective July 8, 2026 (Jan. 8, 2027 for FTZ entries). Importers of all CPSC-regulated consumer products—including de minimis shipments—must submit certificate data at entry, including product identification, certifier, applicable safety rules, manufacturing and testing details, and records contact. The list will guide CBP flagging and voluntary disclaim use that can improve risk scores, and entries with e-filed certificates will route through the 1USG messaging process (including some products that do not require certification).
AD/CVD Roundup: Hypochlorite Upheld, Oman Pipe Circumvention, 130% Taiwan Margin
STR Trade Report •February 6, 2026
U.S. authorities sustained AD/CVD orders on Chinese calcium hypochlorite, set preliminary 2.27–2.40% CVD rates in the 2023 review of Indian carbon steel flanges, and issued a final injury determination paving the way for a CVD order on paper file folders from Cambodia. Commerce also finalized a 130.23% dumping margin on monomers and oligomers from Taiwan with an affirmative critical circumstances finding, and deemed circular welded carbon-quality steel pipe finished in Oman using Chinese hot-rolled steel to be circumventing China pipe orders—raising the prospect of continued and potentially retroactive duties and expanded scope exposure for importers.
WCO HSC to Weigh 2028 HS Updates and Key Classifications
STR Trade Report •February 6, 2026
CBP released the draft agenda for the WCO Harmonized System Committee’s 77th session (Mar. 9–20, Brussels), where members will prepare for HS updates effective Jan. 1, 2028, set the next review’s scope, and consider recommendations on standard units of quantity and new statistical subheadings to better monitor drug‑manufacturing chemicals and equipment. The HSC will also examine classifications for a wide range of products—including cell‑cultured foods, remote radio units, emergency escape hoods, stainless wire, folding tables, and various frozen foods—potentially affecting duty rates, statistical reporting, and compliance strategies. Companies trading in covered goods should monitor outcomes, as resulting opinions and Explanatory Note changes can quickly reshape classification practice.
Treasury Keeps Watchlist, Adds Thailand; Signals Tariffs for Unfair Currency Practices
STR Trade Report •February 5, 2026
Treasury’s semiannual FX report, covering the four quarters through June 2025, found no major partner met all three TFTEA criteria and found no manipulation under the 1988 Act, while criticizing China’s lack of transparency. The monitoring list remains China, Germany, Ireland, Japan, Korea, Singapore, Switzerland, Taiwan, and Vietnam, with Thailand newly added. Treasury reiterated it may recommend tariffs—potentially via a USTR Section 301 investigation—if a future currency manipulation determination is made.
Enforcement & Compliance Actions
FMC Fines Ocean Carrier $22.7M for Demurrage, NOR Billing Violations
STR Trade Report •February 5, 2026
The FMC assessed $22.7 million in civil penalties against an ocean carrier for three Shipping Act violations: billing customs agents under a “merchant clause” ($65,000), failing to describe demurrage/detention charges for non-operating reefers (NORs) in its tariff ($9.5 million), and overcharging NOR demurrage/detention ($13.1 million). Finding overcharges on about 23% of all NOR bills in 2021, the Commission reversed an ALJ and deemed the carrier’s NOR billing system an unreasonable practice. The action signals tougher FMC scrutiny of demurrage/detention billing and tariff transparency; carriers should audit merchant-clause usage and NOR billing, and shippers may challenge improper fees.
GAO Finds CTPAT Data, Enforcement Failures; Recommends CBP Reforms
STR Trade Report •February 6, 2026
A GAO review found that while only about 4% of CTPAT members were tied to security incidents in FY2020–2024, CBP’s incomplete, inconsistent, and duplicative data—plus minimal post‑incident analyses (<2%) and unclear enforcement criteria—undermine risk assessment and accountability. Air and sea carriers (less than 1% of membership) accounted for the largest share of participant incidents, with drug cases comprising 49%. GAO says CBP is not meeting SAFE Port Act mandates and urges data controls, updated enforcement guidance, annual workload planning, and a new five‑year strategy—changes that could tighten oversight and raise compliance expectations for CTPAT participants.
USITC IPR Update: Battery LEO, Light Therapy Violation, New Chip Complaints
STR Trade Report •February 6, 2026
The USITC issued a limited exclusion order in 337-TA-1421 barring entry of rechargeable batteries and components by a defaulted respondent. In 337-TA-1411, the ALJ issued a final initial determination finding a Section 337 violation involving photodynamic therapy systems and related pharmaceuticals (complainant Sun Pharmaceutical; respondents in Germany and the U.S.), now pending Commission review. New complaints target NAND/DRAM chips (MonolithIC 3D; proposed respondents in Japan, South Korea, and the U.S.) and MRAM devices (Avalanche Technology; U.S. respondent), signaling possible import restrictions ahead for electronics and medical-device supply chains if investigations are instituted.
CBP Seizes $70K Unreported Cash from COSCO Vessel in Baltimore
CBP Media Releases •January 30, 2026
During a Jan. 22 boarding, CBP found $70,737 in unreported currency in the purser’s safe of the China-flagged M/V Sheng Ning Hai after the captain failed to declare funds and did not amend a prior FinCEN 105 filed in Searsport, ME. The cash was seized and the vessel released; CBP signaled heightened scrutiny of vessels flagged or operated by adversarial nations, underscoring strict compliance with currency reporting over $10,000. Operators and agents should review cash-handling and FinCEN 105 amendment procedures to mitigate seizure and delay risks.
Critical Minerals & Strategic Supply Chains
U.S. Trade Gap Nearly Doubles as Imports Surge, Goods Drive Spike
STR Trade Report •February 5, 2026
The U.S. trade deficit nearly doubled in November 2025, jumping 94.6% to $56.8B—the largest monthly increase in over 30 years—as imports rose to $348.9B (+5.0%) and exports fell to $292.1B (-3.6%). Goods led the swing: imports climbed 6.6% to $272.5B on pharmaceuticals (+$6.7B), computers (+$6.6B) and semiconductors (+$2.0B), while goods exports dropped 5.6% to $185.6B; services exports hit a record $106.4B and the services surplus edged up to $30.1B. Deficit pressures widened with key partners—EU ($14.5B, +130%), China ($14.7B, +7.3%), and Vietnam ($16.2B, +8%)—signaling renewed goods demand and shifting balances that importers and logistics planners should monitor heading into Q1.
U.S., EU and Japan Advance Critical Minerals Cooperation to Secure Supply
USTR Press Releases •February 4, 2026
USTR announced new bilateral cooperation with the European Union and Japan on critical minerals, signaling a coordinated push to diversify and stabilize inputs for EV batteries and other clean energy technologies. The effort points to closer alignment on standards, traceability, and trade facilitation—potentially affecting market access, compliance expectations, and eligibility for clean-energy incentives.
U.S., Mexico Launch Action Plan to Secure North American Critical Minerals
USTR Press Releases •February 4, 2026
USTR announced that Ambassador Jamieson Greer and Mexico unveiled a bilateral action plan to deepen cooperation on critical minerals and bolster North American supply-chain resilience. The initiative aims to align policy, investment, and cross-border coordination to reduce strategic import risk and support regional manufacturing and clean-energy industries. Specific measures and timelines were not available at publication; companies should watch for guidance that could affect sourcing, compliance, and project development in both countries.
Market Access & Trade Policy
AGOA Reauthorized, Extending Duty-Free Access for Eligible African Exports
USTR Press Releases •February 3, 2026
Ambassador Jamieson Greer issued a statement on the reauthorization of the African Growth and Opportunity Act, confirming continued U.S. preferential market access for eligible sub-Saharan African products. The renewal provides planning certainty for importers and African exporters and warrants close monitoring of country eligibility, rules-of-origin compliance, and any implementing guidance.
U.S.–Guatemala Trade Deal Lowers Tariffs, Streamlines Access and Compliance
STR Trade Report •February 5, 2026
The U.S. and Guatemala struck a pact building on CAFTA‑DR that removes U.S. reciprocal tariffs on certain Guatemalan goods not produced in sufficient U.S. quantities, removes reciprocal tariffs and extends preferential treatment for qualifying textiles and apparel, and caps all remaining reciprocal tariffs at 10%. In return, Guatemala will streamline approvals for U.S. exports (accepting U.S. auto and FDA standards, e‑certs, and faster registrations), reduce agricultural barriers, enable paperless pre‑arrival processing and express facilitation, strengthen IP enforcement, forgo discriminatory digital services taxes, and ban imports made with forced labor. The agreement takes effect 30 days after both sides complete legal procedures and includes a snap‑back if Guatemala signs a preferential deal with a non‑market country; companies should watch for guidance on when tariff changes begin.
U.S., Argentina Sign Reciprocal Trade and Investment Pact to Deepen Ties
USTR Press Releases •February 5, 2026
The United States and Argentina have signed a reciprocal trade and investment agreement, signaling a move to strengthen bilateral economic ties. While the text has not yet been released, the accord could define commitments on market access, investment facilitation, and regulatory cooperation—shaping opportunities and compliance for companies active in both markets. Traders should watch for the published text, sector coverage, and implementation timelines.
WTO Launches Reform Month to Advance Post-MC14 Workplan Before Yaoundé
WTO Latest News •February 2, 2026
On 3 February, WTO members reviewed next steps on institutional reform as facilitator Ambassador Petter Ølberg (Norway) slated a “reform month” starting 5 February to shape a post-MC14 workplan ahead of the March 2026 ministerial in Yaoundé. The flexible draft targets decision-making, development and special and differential treatment, level-playing-field issues, and dispute settlement, with consultations on 5, 9, 10, and 16 February and a goal to agree a workplan at the March General Council for ministerial endorsement; the EU and Paraguay also presented submissions. For trade professionals, the timeline signals potential shifts in decision-making and dispute resolution that could alter negotiating dynamics and compliance planning.
Indonesia, African Group table MC14 agriculture proposals to break stalemate
WTO Latest News •February 2, 2026
WTO members debated two new agriculture submissions from Indonesia and the African Group on 30 January, aiming to craft a compromise text for MC14 in Yaoundé on 26–29 March. Indonesia proposes a ministerial decision on food security that reaffirms special and differential treatment and outlines post‑MC14 work on domestic support (including cotton), trade‑distortions, and transparency, while the African Group offers compromise elements; members also held dedicated discussions on public stockholding and a special safeguard mechanism. With capitals reviewing and views split between a broad principles declaration and more prescriptive guidance, expect a push for a concise, outcome‑oriented text and a defined post‑MC14 work program—key for businesses tracking subsidy disciplines, market safeguards, and agri‑trade predictability; the next negotiating session is tentatively 27 February.
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