Section 122 Tariff Challenge, IEEPA Refunds, and USMCA Review
NEWSLETTER | Trade Insight AI
CIT Lawsuit Targets 10% Section 122 Tariff on All Imports
STR Trade Report • March 6, 2026
On Mar. 5, 24 states sued in the U.S. Court of International Trade to block the administration’s use of Trade Act Section 122 to impose blanket tariffs on all imports for up to 150 days. The 10% tariff took effect after the Supreme Court’s Feb. 20 ruling invalidated the IEEPA tariffs, and the president has signaled a possible increase to 15%—though no formal action yet—creating immediate cost and planning uncertainty for importers.
Policy and Tariffs Watch
CIT Orders CBP to Liquidate Without IEEPA Tariffs; Appeal Expected
STR Trade Report •March 5, 2026
On March 4, the Court of International Trade ordered CBP to liquidate unliquidated entries and reliquidate non-final liquidations without applying IEEPA tariffs, excluding finally liquidated entries; the order currently applies to all importers regardless of litigation status. A non-public conference is set for March 6 at 10 a.m. ET to address refund mechanics and treatment of liquidated entries, while DOJ argues importers should sue for refunds on liquidated entries and the government is expected to appeal to the Federal Circuit. With outcomes uncertain, importers may wish to preserve rights by protesting within 180 days and considering CIT actions, particularly for finally liquidated entries.
WTO Weighs Digital Trade Committee, Moratorium Options Ahead of MC14
WTO Latest News •March 2, 2026
WTO members weighed a Swiss-led proposal to establish a Committee on Digital Trade and extend the moratorium on customs duties for electronic transmissions, alongside ACP and U.S. submissions on reinvigorating the Work Programme and making the moratorium permanent. With MC14 set for 26–29 March in Yaoundé, the facilitator urged compromise before the 10–11 March General Council to shape a ministerial decision; an initial database of e-commerce technical assistance was also opened for member feedback.
Court: Mastectomy Bras Dutiable Under 6212, Not Duty‑Free 9021
STR Trade Report •March 5, 2026
The Court of International Trade held that post‑mastectomy brassieres are properly classified under HTSUS 6212.10.90 (16.9% duty) rather than as parts or accessories of artificial body parts under HTSUS 9021.39.00 (duty‑free). The court found the eo nomine term “brassiere” is not limited by the type of breast supported and that added pockets and support features do not change the article’s identity. Importers of adaptive and medical-use bras should review classifications, pricing, and duty exposure, and monitor for any appeal.
Export Controls, IP, and Enforcement
BIS Fines Two Firms for EAR Misvaluation, Unlicensed Tech Transfer
STR Trade Report •March 6, 2026
BIS issued separate civil penalties, including a $1 million fine for causing exports from abroad without required authorization after miscalculating the EAR’s 25% de minimis U.S.-content threshold and allegedly structuring prices to suppress controlled U.S. content; the case also involved an unlicensed export to an Entity List address. In a second order, BIS levied nearly $375,000 after a company uploaded specifications for a national-security/regional-stability–controlled item to a Chinese manufacturer’s online portal without a license, then supplied parts to the U.S. Navy while misrepresenting the manufacturer’s identity. The actions underscore heightened enforcement around de minimis valuation, attempts to evade licensing, and the treatment of technical data uploads to foreign platforms as licensable exports—especially when China and Entity List parties are involved.
DEA Schedules Five Benzodiazepine Analogs; Import/Export Controls Begin April 1
STR Trade Report •March 5, 2026
DEA issued a final order placing clonazolam, diclazepam, etizolam, flualprazolam, and flubromazolam—including their salts and isomers—into Schedule I of the Controlled Substances Act effective April 1. The move triggers full Schedule I controls and penalties, sharply restricting import/export, manufacturing, distribution, and research absent DEA authorization. Companies handling these compounds should reassess registrations, documentation, and supply chains before the effective date.
USTR Names 69 Notorious Markets, Targets Sports Piracy, Cyberlockers
STR Trade Report •March 5, 2026
USTR’s 2025 Notorious Markets report lists 37 online and 32 physical venues tied to large-scale piracy and counterfeiting, with new focus on live sports broadcast piracy. The report highlights cyberlockers, bulletproof ISPs, and counterfeit sales fueled by e-commerce/social platforms and deceptive ads, while noting some recent improvements in certain markets. Although not a legal finding, the list signals U.S. enforcement and engagement priorities—guiding right holders, platforms, and partners on brand protection and compliance strategies.
CBP Nabs Bronze Age Swords, Arrowheads in Misdeclared UAE Shipment
CBP Media Releases •February 27, 2026
On Feb. 18, Philadelphia CBP seized 36 copper-alloy short swords and 50 arrowheads misdeclared as “metal decoration” in an express shipment from the UAE to Jacksonville, Fla. An archaeologist authenticated the items as Bronze Age antiquities (1600–1000 BCE) from Iran’s Talish Mountains, likely sourced from illicit excavations; without an export permit from the country of origin, such imports are unlawful. The case highlights strict enforcement of U.S. cultural property import rules and the need for importers, shippers, and brokers to verify provenance and permits to avoid seizures and penalties.
Trade Agreements and Global Policy
U.S., Mexico Begin USMCA Review, Shaping North American Trade Terms
USTR Press Releases •March 5, 2026
The United States and Mexico have formally launched the USMCA review process, the agreement’s scheduled six-year assessment that can set priorities and determine any updates ahead of a trilateral decision on extending the pact’s term. The kickoff signals consultations and stakeholder outreach on issues such as market access, rules of origin, labor, and dispute settlement—areas with direct implications for supply chains and compliance. Companies should track the review calendar and prepare input given the potential for policy adjustments and renewed enforcement focus.
WTO-EIB MoU links finance to Investment Facilitation Agreement rollout
WTO Latest News •March 3, 2026
On 4 March 2026, the WTO Secretariat and the European Investment Bank Group signed an MoU launching the EIB–WTO Trade and Investment Facilitation Initiative to translate the new Investment Facilitation for Development Agreement, joined by 128 WTO members, into bankable projects. The partnership pairs regulatory-reform support, needs assessments and action plans with EIB funding and blended finance to de-risk FDI, starting with pilot African countries and priority sectors including green and digital transitions, health, education and decent job creation. Expect clearer investment rules, faster project preparation and financing opportunities across areas like critical minerals, digital technologies and the bioeconomy, with joint research guiding future policy.
South Africa joins WTO MSME group; MC14 to spotlight SME digitalization
WTO Latest News •March 1, 2026
The WTO’s MSME Group welcomed South Africa as its 105th participant and outlined MC14 deliverables, including a work stocktake and joint takeaways on access to finance for women-led firms, with two SME-focused side events on 25 March in Yaoundé. The ITC reported a new policy-sharing platform now used by 74 countries and released its SME Competitiveness Outlook on digital transformation, while members shared progress implementing the 2020 MSME Package; applications are open until 16 March for the Small Business Champions competition on using AI for trade. These steps signal tighter coordination on SME digitalization, finance and inclusion ahead of MC14, with potential new workstreams on regulatory practices, IP and AI.
USTR Opens Applications for Four Trade Advisory Panels, Deadline Mar. 25
STR Trade Report •March 5, 2026
USTR is renewing four-year charters and seeking qualified applicants for ACTPN, IGPAC, TACA, and TEPAC, which advise on U.S. trade policy, negotiations, state and local impacts, sub-Saharan Africa, and environmental considerations. Applications received by March 25 will get full consideration, with rolling nominations accepted afterward until the charter terms expire. This is a timely opportunity for seasoned trade professionals to help shape upcoming policy priorities and negotiations.
Market Access, Manufacturing, and Agriculture
Kenya Imposes Port Inspections; APHIS Restricts Cyprus, Updates Poultry Zones
STR Trade Report •March 6, 2026
Kenya has shifted U.S.-origin shipments from pre-shipment to mandatory on-arrival conformity inspection as of Feb. 9, with KEBS replacing SGS and charging a 0.6% fee on customs value (min $300, max $3,500)—changes likely to slow clearance and raise port costs and paperwork. USDA APHIS, citing foot-and-mouth disease, is restricting until further notice imports of live ruminants, camelids, swine, and related products from all of Cyprus effective Jan. 23; processed items require permits/certification, while many unprocessed products are prohibited unless consigned to approved facilities. APHIS also updated HPAI controls, adding restrictions for Japan’s Iwate (Feb. 21) and Hokkaido (Mar. 5) and Canada’s PCZ-321 (Ontario, Feb. 19) and PCZ-FV2 (B.C., Feb. 23), while lifting bans for Japan’s Gifu (Feb. 23) and several Canadian zones through Mar. 4.
USTR touts U.S. farm export momentum, targets expanded market access
USTR Press Releases •March 2, 2026
A USTR-published op-ed asserts U.S. agriculture has regained global leadership, citing strong buyer demand and recent market-opening progress. The piece signals priorities around enforcing trade commitments and reducing SPS/technical barriers while diversifying destinations to support farm income. Exporters should watch for stepped-up promotion and targeted negotiations that could broaden access for high-value products.
AD/CVD Update: Steep L-lysine margins; zero-rate aluminum review
STR Trade Report •March 6, 2026
U.S. trade authorities issued multiple AD/CVD updates, including a final zero dumping margin for South African common alloy aluminum sheet for Apr 1, 2023–Mar 31, 2024. Preliminary results set Korean cold-rolled steel AD margins at 0% and 2.28% and CVD rates at 1.28% and 3.67% (2023), and assigned a 1.44% preliminary CVD rate to Turkish oil country tubular goods for 2023. These actions continue AD orders on ferrovanadium from China and South Africa (effective Mar 3) and impose steep preliminary margins on Chinese L-lysine (41.22%–142.59%) with cash deposits due on entries from Mar 6; importers should adjust deposit rates, explore refunds where margins are zero, and reassess sourcing exposure.
FTZ Board: New Production in WA, OK; Houston Steel Plan Withdrawn
STR Trade Report •March 6, 2026
The FTZ Board reported two notifications of proposed production: Essex Laboratories (FTZ 216, Chehalis, WA) for mint oil blends and Baker Hughes Oilfield Operations (FTZ 53, Claremore, OK) for components used in electrical submersible pumping systems. Separately, Recodeal Energy (FTZ 84, Houston, TX) withdrew its proposed galvanized steel production request. Companies tracking FTZ production authority should assess potential duty-savings opportunities and monitor the docket for next steps.
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