Smarter Classification, Big Refunds, and Solar Shock: This Week in Trade Compliance
NEWSLETTER | Trade Insight AI
Trade Insight AI adds UK and China classification with jurisdiction-specific logic
Trade Insight AI • February 26, 2026
Trade Insight AI expanded its product classification support to the UK and China, applying a logic-first, jurisdiction-aware approach rather than generic HS lookups. The update addresses post-Brexit divergence in the UK and China’s centralized-yet-localized enforcement reality, delivering audit-ready outputs built for consistency, traceability, and defensibility. For compliance teams, this enables scalable, controlled classification programs across high-risk markets without defaulting to one-off exceptions.
Tariffs, Duties & Trade Remedies
Senate Dems Introduce Tariff Refund Act for Overturned IEEPA Duties
STR Trade Report •February 26, 2026
On Feb. 23, Senate Democratic leaders introduced the Tariff Refund Act of 2026 to mandate full, interest-bearing refunds of IEEPA tariffs recently overturned by the Supreme Court; lawmakers say roughly $175 billion was collected. The bill would require CBP to refund duties even on liquidated entries within 180 days, prioritize small businesses, provide 30-day status reports to Congress, and issue duty drawback guidance, while urging companies to pass savings to customers. If enacted, importers that paid these duties could see refunds within six months.
AD/CVD Roundup: Solar Cells Up to 143% CVD; Retroactive Risk
STR Trade Report •February 27, 2026
Commerce issued preliminary CVD determinations on crystalline silicon solar cells from India, Indonesia, and Laos with subsidy rates of 125.87% (India), 85.99 to 143.30% (Indonesia), and 80.67% (Laos), alongside preliminary partial affirmative critical circumstances for India and Indonesia that signal potential 90-day retroactive cash deposits for some exporters. Additional actions included continuation of the AD order on electrolytic manganese dioxide from China; preliminary AD margins on Indian lined paper of 0.61%, 1.58%, or 5.29% with partial rescissions; low preliminary AD margins on Korean cut-to-length steel plate (0.94% or 1.18%); final AD margins on Indian off-the-road tires of 0% or 3.78%; a wide split in final CVD rates on Indian organic soybean meal (3.66% or 75.48%); and a 4.40% final CVD rate for Turkish large diameter welded pipe.
AD/CVD Update: Palladium Hearings Set; Solar Zero, Wood Margins High
STR Trade Report •February 26, 2026
The ITC scheduled the final phase of AD/CVD investigations on unwrought palladium from Russia, with prehearing briefs due April 21, a hearing April 27, posthearing briefs May 4, and final comments May 26. Commerce issued review results: preliminary dumping margins of 7.70–11.77% on Mexican light‑walled rectangular pipe (12 firms rescinded); a 1.83% final dumping margin for India’s granular PTFE; CVD rates of 12.01% (2022) and 6.07% (2023) on Indian sodium nitrite; and a zero AD margin for Taiwan crystalline silicon PV products. Final reviews for Chinese wood mouldings set AD margins of 31.18–61.86% and CVD rates of 20.32–26.51%, signaling material cash deposit and assessment implications for affected importers.
Market Access & Negotiations
U.S.-Indonesia Deal Cuts Tariffs on 99% of Goods, Adds Digital Wins
USTR Press Releases •February 23, 2026
The United States and Indonesia announced a reciprocal trade agreement removing tariff barriers on more than 99% of U.S. products and dismantling key import licensing hurdles, opening broader access to a market of 280 million consumers. The pact delivers sector-specific gains—a 50,000 metric ton annual beef purchase commitment; expanded opportunities for dairy, pork, soymeal, apples, grains; and a pathway for nationwide E10 that could unlock 900 million to 1 billion gallons of ethanol demand. It also embeds digital trade rules prohibiting tariffs on digital products and guaranteeing cross-border data flows, signaling near-term export growth if implementation stays on track.
USTR Seeks Input on Plurilateral Critical Minerals Trade Pact
USTR Press Releases •February 26, 2026
USTR has opened a public comment process on designing a plurilateral agreement for trade in critical minerals and on policy actions to strengthen supply chain resilience. The effort signals closer coordination with partner economies to secure reliable, sustainable mineral sourcing and could shape future rules on market access, standards, and risk management across key industrial supply chains. Companies exposed to critical minerals should prepare to submit input and assess potential impacts on sourcing strategies and compliance obligations.
ITC Launches Review of USMCA Auto Origin Rules, Seeks Input
STR Trade Report •February 25, 2026
On Feb. 19, the U.S. International Trade Commission opened an investigation into how USMCA automotive rules of origin affect U.S. GDP, trade flows, employment, wages, investment, and consumers, and how the rules operate amid evolving technologies and production processes. The review will also assess U.S. competitiveness in auto goods and whether current ROOs remain fit-for-purpose—findings that could inform future policy adjustments and compliance strategies across North American auto supply chains. A public hearing is set for Oct. 14, with requests to appear due Sept. 29; prehearing briefs Oct. 1; electronic oral statements Oct. 6; posthearing briefs Oct. 21; and all other submissions due Nov. 2.
WTO launches 2026 TFA review; funding gaps threaten capacity-building
WTO Latest News •February 24, 2026
Members advanced the second review of the Trade Facilitation Agreement, adopting a revised review calendar and voluntary submission template while seeking deeper data on implementation impacts and more private‑sector and NTFC engagement. With Tonga’s ratification, 162 of 166 members are now parties; developing and LDC members have committed to implement 83.7% of provisions (87.4% overall), yet 364 extension requests—three quarters for Category C—highlight persistent capacity gaps. The TFAF reported rising grant demand but 2026 budget constraints (6 of 13 implementation grants and all 7 prep grants approved in 2025), prompting donor appeals as the Committee also examined customs issues raised by the United States in Indonesia, Sri Lanka and Thailand.
Disputes & Industrial Policy
WTO sets panel on India EV incentives; US appeals IRA credits
WTO Latest News •February 23, 2026
On 24 February, the WTO Dispute Settlement Body established a panel (DS642) to examine China’s claims that India’s incentives for advanced chemistry cell batteries, automobiles, and EVs breach national treatment and ban-on-import-substitution subsidy rules, with broad third‑party participation signaling high interest. The United States appealed the panel report on Inflation Reduction Act tax credits (DS623), halting adoption amid the continued Appellate Body impasse and drawing criticism from China and calls from the EU for appeal review options. The EU also sought a panel over China’s worldwide SEP licensing orders, while 130 members again pushed—unsuccessfully—to restart Appellate Body appointments.
Resilient GVCs Go Regional; Critical Minerals Mini-Deals Lift Trade 12%
WTO Latest News •February 24, 2026
Global value chains remain robust—still 46.3% of world trade—and are tilting more regional and digital as participation broadens beyond the top economies (their share fell from 76% in 2010 to 64% in 2024), with emerging Asian hubs and early gains in Africa and Latin America. Governments are scaling industrial and green policies across 70+ economies in GVC-heavy sectors, generating cross-border spillovers that can rival domestic effects, raising both learning opportunities and displacement risks without stronger transparency and coordination. By end-2024, 185+ targeted trade deals in digital trade and critical minerals were in place—digital linkages up 30x since 2019—with critical-mineral pacts linked to roughly 12% higher trade, though sparse public texts and overlapping rules risk fragmentation.
Compliance, Safety & Export Controls
GAO presses CPSC on July e-filing, lab oversight for children's products
STR Trade Report •February 27, 2026
The GAO urged the CPSC to tighten import oversight of children's products, citing gaps as the agency launches mandatory July e-filing of key data (e.g., product identification and testing lab) to improve port targeting. Recommendations include an e-filing compliance oversight plan, broader use of violations data to assess risks across independent and government labs, and scheduled reviews of lead and phthalates rules; the CPSC agreed to implement them. Importers should expect stricter targeting and documentation checks and prepare now by ensuring accurate, on-time e-filings and robust third-party test records.
New Mandatory Crib Mattress Standard Takes Effect May 3, Pending Comments
STR Trade Report •February 27, 2026
CPSC issued a direct final rule to update the mandatory crib mattress safety standard, allowing ASTM F2933-25 to take effect May 3 unless significant adverse comment is filed by March 16. The revision adds new performance and test methods for firmness and coil springs and clarifies requirements to reduce suffocation and entrapment risks. CPSC will retain three existing modifications in 16 CFR part 1241 addressing hazardous corner gaps, entrapment for rigid-sided rectangular after-market products, and ASTM references—prompting immediate compliance and testing updates for manufacturers and importers.
CPSC Reverts VSL Method, Raising Bar for Costly Safety Rules
STR Trade Report •February 26, 2026
The CPSC rescinded a 2024 guidance that adjusted Value per Statistical Life calculations by effectively double‑counting children, a change the agency says inflated projected benefits and increased legal risk. The commission will again apply a single VSL across age groups, aligned with OMB standards, which is expected to impose stricter cost‑benefit thresholds on future CPSC rulemakings. For consumer product importers and manufacturers, this could temper new regulatory burdens and offer greater predictability in compliance planning.
Agencies Seek Comments on Export Controls, Sanctions, and Supplement GMPs
STR Trade Report •February 27, 2026
Multiple federal agencies are seeking public comment on information collections tied to export controls, sanctions compliance, and dietary supplement GMPs. Commerce/BIS proposes extensions for foreign availability determinations and Entity/Unverified List requests and a revision to EAR violation reporting; FDA would extend GMP-related requirements for dietary supplement manufacturing, packaging, labeling, and holding; OFAC plans a revision to its sanctions reconsideration portal procedures. Compliance teams should assess potential changes to reporting and recordkeeping burdens and consider submitting comments to shape processes and minimize disruption.
DOJ Secures 38-Month Sentence in Russia Microelectronics Export Case
STR Trade Report •February 26, 2026
A Bulgarian national was sentenced in federal court in Austin on Feb. 18 to 38 months time served for conspiring to violate IEEPA by using a Bulgarian front company to route U.S.-origin radiation‑hardened, high‑temperature microelectronics to Russia that required a BIS license under post‑Crimea export controls. DOJ says six wafers worth about $497,000 were shipped between 2014 and 2018 amid payments exceeding $1 million, underscoring aggressive enforcement of Russia-related export controls and the need to guard against third‑country diversion.
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