Section 301 Showdown, CBP’s $1B EAPA Milestone, and New Tech Import Bans
NEWSLETTER | Trade Insight AI
Class Action Challenges 10–12.5% Section 301 Forced‑Labor Tariffs
STR Trade Report • July 31, 2026
A class-action filed at the U.S. Court of International Trade seeks to invalidate the Trump administration’s Section 301 duties of 10–12.5% on imports from 86 countries, alongside a parallel individual suit by companies that previously prevailed against the IEEPA tariffs. Plaintiffs argue USTR exceeded Section 301’s country- and practice-specific authority and that, absent such limits, the regime would unconstitutionally delegate Congress’s tariff power; they also call the action arbitrary and capricious, citing rushed investigations, near-uniform rates mirroring IEEPA, coverage tied to import value, and a lack of record-based, country-specific rationale. A favorable ruling could unwind broad duties, enable potential refund opportunities for eligible entries, and force a recalibration of USTR’s forced-labor trade strategy.
Enforcement Spotlight: EAPA Milestone and Fraud Playbook
CBP Uncovers $1B in EAPA Duty Evasion, Signals Tougher Scrutiny
CBP Media Releases •July 29, 2026
U.S. Customs and Border Protection reported more than $1 billion in unpaid antidumping and countervailing duties uncovered through Enforce and Protect Act investigations—a first for the program’s 10-year history and roughly 300% above its annual average. In 2026, CBP issued 14 determinations spanning products from solar cells to wooden furniture, conducting on-site verifications in Mexico, Thailand, India, New Zealand, and the United Kingdom to combat transshipment, misclassification, and undervaluation. The record haul signals intensified AD/CVD enforcement with one-year statutory timelines, elevating compliance risk and pressuring importers to tighten origin, valuation, and documentation controls.
Importers Face Whole-of-Government Crackdown Under New Trade Fraud Guide
STR Trade Report •July 29, 2026
A newly published trade fraud enforcement guide reframes customs violations as national and economic security risks and details a coordinated CBP-HSI-DOJ strategy combining criminal, civil (including False Claims Act treble damages), and administrative tools. Expect broader supply-chain liability that reaches brokers, logistics providers, distributors, and executives, along with more audits, bond claims, and penalties, plus potential criminal exposure tied to forced labor and misstatements on regulated products. Importers should elevate compliance to an enterprise risk priority, strengthen supply-chain due diligence and recordkeeping, and consider voluntary disclosures to mitigate exposure.
FMC Revokes 35 OTI Licenses Over Surrenders, Bond Lapses
STR Trade Report •July 31, 2026
The Federal Maritime Commission revoked 35 ocean transportation intermediary licenses following voluntary surrenders or failures to maintain required bonds. Revocation removes authority to operate as a U.S. OTI; shippers and carriers should re-verify counterparties’ FMC status to avoid unlawful bookings, cargo disruption, and compliance risk.
CBP Targets E-commerce: $9M in Fake FIFA 2026 Gear Seized
CBP Media Releases •July 27, 2026
CBP’s IAH Trade Enforcement Team seized nearly 20,000 counterfeit FIFA World Cup 2026 items—jerseys, soccer balls, glassware, and more—with an MSRP just under $9 million, including national team kits for the U.S., Mexico, Brazil, Argentina, and others. Using pre-event intelligence, officers targeted recipients of IPR-infringing shipments, most originating from China, underscoring intensified scrutiny of small e-commerce parcels in international mail and express channels where over 90% of counterfeit seizures occur. Similar operations nationwide signal sustained IPR enforcement around major sporting events, raising compliance risk for cross-border e-commerce and small-package importers.
Tariffs, Remedies, and Disputes
Brazil Challenges U.S. 25% and 12.5% Section 301 Tariffs at WTO
WTO Latest News •July 29, 2026
Brazil has requested WTO consultations with the United States over additional Section 301 duties on Brazilian-origin goods—25% on all products and 12.5% under a separate forced-labor investigation—applied on top of normal HTS rates and subject to exemptions. Brazil argues the measures violate GATT 1994 and the DSU; if consultations do not resolve the issue within 60 days, it may seek a dispute panel. The case puts wide-ranging U.S.–Brazil trade under legal scrutiny and heightens near-term pricing and compliance risk for importers and exporters.
AD/CVD Update: 103% Electrode Deposits, 186.61% HFC Margin, Solar Carve-Out Review
STR Trade Report •July 31, 2026
Commerce and the ITC issued multiple AD/CVD actions: preliminary CVD cash deposits on large‑diameter graphite electrodes (China 103.49%; India 3.68–6.99%) and a final 186.61% dumping margin for HFC blends for the Aug. 1, 2023–July 31, 2024 review period. Sunset reviews signal continued orders on Chinese chassis (CVD benchmark 44.32%) and vertical shaft engines, while Commerce opened a changed‑circumstances review that could revoke the China CSPV cell/module orders for certain off‑grid portable panels. Importers face immediate deposit exposure on electrodes and potential relief for qualifying off‑grid solar products, with chassis and engine orders poised to remain in force.
WTO Panel Issues Report on Türkiye’s EV, Vehicle Measures Affecting China
WTO Latest News •July 27, 2026
The WTO circulated the panel report in DS629, the dispute brought by China over Türkiye’s measures on electric and other vehicles. With findings now public, next steps could include appeal and implementation discussions; automakers and importers should assess potential implications for market access and trade terms for China‑origin vehicles entering Türkiye.
Technology and Security Controls
FCC Blocks Imports of Foreign Connected Inverters, Autonomous Robots
STR Trade Report •July 31, 2026
Effective July 28, the FCC added connected power inverters and certain autonomous mobile robots to its Covered List, cutting off new equipment authorizations required for import, marketing, and sale in the U.S. The move targets networked, sensor-equipped ground robots over 4.4 lb and bi-directional inverters with remote connectivity, while exempting previously authorized models and federal government uses. Manufacturers may seek conditional national-security approvals from DoD or DHS, but importers and retailers should reassess sourcing and halt entry of newly covered devices immediately.
U.S. Moves Firearm Suppressors to EAR, Aligns with Firearms Rules
STR Trade Report •July 30, 2026
BIS and the State Department issued interim final rules moving certain silencers, mufflers, and suppressors for non‑automatic and semi‑automatic firearms from the U.S. Munitions List to the EAR (ECCNs 0A501.f/0A502.f), effective Nov. 20. Licenses will still be required for certain exports, reexports, in‑country transfers, and related software/technology releases to foreign persons, but firearms license exceptions will now apply to suppressors—potentially easing compliant shipments to eligible destinations. Companies should update classifications and licensing strategies and may submit comments by Aug. 24.
Global Trade Outlook and Border Modernization
Q1 trade up 3.2% as AI offsets Gulf conflict
WTO Latest News •July 30, 2026
World merchandise trade volume rose 1.9% quarter-on-quarter and 3.2% year-on-year in Q1 2026 (value +11% y/y), beating baseline forecasts as AI-enabling electronics surged more than 40% and drove Asia’s intra-regional flows. The Middle East war—including an effective Strait of Hormuz closure in early March—only partially hit Q1 data; deeper contractions in regional trade and energy shipments are expected from Q2, while Asia and North America remain relative bright spots ahead of an updated WTO forecast in October. Regionally, Asia’s exports rose 12.9% and imports 14.6%, while the Middle East fell 9.7% and 11.9%, respectively.
CBP Boosts AI Enforcement; U.S. Tightens Vietnam Checks; Mexico Exports Pivot
STR Trade Report •July 30, 2026
CBP is expanding AI-driven targeting to deepen transaction-level scrutiny and adapt enforcement in a volatile trade environment. In parallel, the U.S. has stepped up factory inspections in Vietnam amid transshipment concerns—despite no decisive findings—signaling heightened origin risk and potential tariff actions. Mexico’s AI-related equipment exports reached a record $105.8 billion in Jan–May 2026, overtaking autos, underscoring a rapid shift in North American supply chains and sourcing opportunities.
CBP, Qatar launch remote baggage screening for Doha-JFK flights
CBP Media Releases •July 24, 2026
CBP, Qatar’s Ministry of Interior, Qatar Airways, and JFK’s New Terminal One have implemented International Remote Baggage Screening on the Doha–JFK route, transmitting checked-bag X-rays from Hamad International to CBP officers while flights are en route. The program tightens threat interdiction and streamlines arrivals—letting eligible connecting passengers skip baggage reclaim unless flagged—leveraging a $9.5B terminal designed for next-gen border processing. As CBP scales IRBS under its Airport Modernization Plan, stakeholders should expect faster clearances and updated security workflows at major gateways.
Compliance, Market Access, and Duty Savings
NMFS Weighs Conditional Findings to Ease MMPA Seafood Import Bans
STR Trade Report •July 30, 2026
NMFS is seeking public input through Sept. 28 on potential revisions to Marine Mammal Protection Act import rules after the Jan. 1, 2026 restrictions affected about 240 fisheries across 46 countries. The review could streamline comparability findings (including conditional approvals), recalibrate timing of trade measures, consider economic impacts, and overhaul the certificate of admissibility process to reduce port delays and administrative burden. Seafood importers, processors, and exporting nations should engage now, as changes may ease documentation and compliance while maintaining bycatch protections.
CBP Broker CE: 20 Credits Due by Jan. 31, 2027
STR Trade Report •July 30, 2026
U.S. customs brokers must complete 20 continuing-education credits by Jan. 31, 2027 for the current triennial period—reduced from the standard 36 because CBP-accredited coursework only began Jan. 1, 2025. Credits may come from accredited in-person or online training; federal agency courses qualify automatically, while third‑party offerings require approval by a CBP-selected accreditor. Brokers newly licensed in 2024–2026 are exempt until the 2027–2030 period, so firms should verify provider accreditation and schedule remaining coursework to ensure timely compliance.
FTZ Board Approves New Subzones, Expanded Production Across 13 States
STR Trade Report •July 29, 2026
The FTZ Board approved new subzones and authorized production at facilities spanning aerospace, chemicals, energy equipment, and industrial manufacturing, including Pratt & Whitney (ME), GE Aerospace sites (IN, NC), GE Gas Turbines (SC), Eastman Chemical (TN), SSI Shredding (OR), and others. It also took up applications and production notifications from firms such as Intel (semiconductors, AZ), Pactron (PCBAs, CA), ifm prover (industrial automation, PA), Patheon (pharma, OH), Total Distribution (OH), and Hithium Tech USA (TX). These actions can unlock FTZ benefits—duty deferral, inverted tariffs, and streamlined imports—improving cost competitiveness and supply chain agility for approved operations.
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