Valuation Rule Under Fire, New Trade Pacts, and Compliance Tightens
NEWSLETTER | Trade Insight AI
U.S. Senate Bill Would Eliminate First Sale, Raising Importers' Duties
STR Trade Report • February 12, 2026
A new Senate bill would end the longstanding “first sale” valuation rule, forcing importers to pay duties based on the final sale to the U.S. buyer rather than earlier transactions—reversing nearly 40 years of precedent. The change would likely raise duty liability across sectors and affect pricing and sourcing strategies, despite arguments that first sale supports supply chain transparency and CBP compliance. ST&R, which led the 1988 case establishing first sale and a 2008 defense effort, is organizing a coalition to oppose the measure.
Market Access and Trade Agreements
U.S., Taiwan Sign Reciprocal Trade Pact to Boost Market Access
USTR Press Releases •February 12, 2026
The United States and Taiwan signed a reciprocal trade agreement under the AIT/TECRO framework aimed at eliminating tariff and non‑tariff barriers to U.S. exports. The deal is positioned to expand opportunities for U.S. agriculture, manufacturing, and small businesses while strengthening supply‑chain resilience in high‑technology sectors. Exporters to Taiwan should watch for implementation details and updated tariff schedules.
U.S.-Bangladesh Deal Creates Zero-Tariff Apparel TRQ, Caps Duties at 19%
STR Trade Report •February 13, 2026
The U.S. and Bangladesh signed a trade pact on Feb. 9 that they will now finalize, creating a zero-tariff TRQ for Bangladeshi textiles and apparel and capping U.S. reciprocal duties at 19% (down from 20%), with zero rates for items not produced domestically. The apparel TRQ’s in-quota volume will be tied to U.S. exports of textile inputs, encouraging deeper sourcing links. Bangladesh will grant significant preferential access for U.S. industrial and agricultural goods and adopt wide-ranging reforms spanning customs digitization by 2030, export controls and duty‑evasion cooperation, forced‑labor prohibitions, acceptance of U.S. standards and FDA certifications, data flows, IP, and anti‑corruption.
U.S., North Macedonia Launch Framework for Reciprocal Trade Agreement
USTR Press Releases •February 12, 2026
Following a presidential Joint Statement, USTR announced a framework with North Macedonia to pursue an Agreement on Reciprocal Trade aimed at deepening ties and cutting red tape for U.S. farmers and producers. Ambassador Jamieson Greer said the initiative seeks to rebalance the trade relationship and create new opportunities for American workers and businesses. Additional details are provided in the joint statement and fact sheet.
USTR Highlights Broad Stakeholder Support for Trump’s New Trade Deals
USTR Press Releases •February 11, 2026
A USTR press release compiles endorsements from farm groups, industry leaders, and lawmakers praising the administration’s recent trade agreements. The statements emphasize anticipated gains in market access and export opportunities—especially for U.S. agriculture—though the release offers limited new policy detail. For trade professionals, the messaging signals implementation priorities and sectors likely to benefit as agreements roll out.
Compliance Alerts: Filings, Documentation, and Export Controls
CBP Plans Mandatory ACE Export Manifests With 24/2‑Hour Deadlines for Vessels
STR Trade Report •February 12, 2026
U.S. Customs and Border Protection proposed requiring advance electronic export manifest (EEM) submissions in ACE for vessel cargo; comments are due April 13. A mandatory initial filing—covering B/L number, quantities/weight, precise cargo description (no “freight all kinds”), shipper/consignee, and AES ITN—would be due 24 hours before loading, with additional transportation/cargo and empty‑container data due two hours pre‑load; post‑departure filing would be limited to Puerto Rico. Outbound carriers must transmit transportation and empty‑container data while eligible NVOCCs/forwarders/brokers can file cargo data; bonded filers face potential 2H documentation or 1H enforcement holds and liquidated damages of $5,000 per violation (up to $100,000 per departure), underscoring the need to tighten data quality and workflows.
DDTC Blue Lantern Flags 36% Unfavorable End-Use Checks in FY24
STR Trade Report •February 12, 2026
An annual DDTC report shows 123 of 341 Blue Lantern end-use cases closed in FY2024 were unfavorable (36%), with failure rates highest in the Near East (55%) and Europe (41%). Top red flags included refusal to cooperate, derogatory information on foreign parties, unlicensed parties, and inadequate secure storage, triggering license denials/returns, watchlist updates, and compliance referrals. With 292 checks initiated in 70 countries and an actively maintained 241,000-entity watchlist, defense exporters should tighten due diligence on consignees and end-users to avoid disruptions.
CBP Mandates AMS Data for Organics; Wrong NOP‑ICs Rejected
STR Trade Report •February 12, 2026
Effective Feb. 13, 2026, CBP will shift select organic HTSUS lines from AMS flag AM7 (may file) to AM8 (must file) with reject severity, making AMS data mandatory at entry. CBP/AMS also warn that filers are substituting 10‑digit NOP operation IDs for 21‑character NOP import certificate (NOP‑IC) numbers and using the wrong ACE message sets—OR2 for electronic NOP‑ICs and special codes, OR1 only for manual NOP‑ICs—errors that can trigger heightened scrutiny, rejection, or forced disposition (reexport, restricted donation, destruction).
CBP Expects Record Valentine’s Cut-Flower Inspections as Volume Surges
CBP Media Releases •February 6, 2026
Ahead of Valentine’s Day, CBP agriculture specialists have already inspected over 1 billion cut-flower stems and intercepted 600+ pests and plant diseases, with volumes expected to surpass last year’s 1.3 billion. Miami International Airport handles about 88% of these imports—largely from Colombia, Ecuador, and Mexico—while Otay Mesa and LAX process most of the rest; importers should anticipate intensified inspections and ensure compliance with marking and phytosanitary rules.
Tariff Strategy and Product Classification
12 Ways Importers Can Reduce Section 232 and IEEPA Tariffs
STR Trade Report •February 13, 2026
Amid layered Section 232 and IEEPA regimes, many importers are overpaying and can secure retroactive savings through proactive audits, post-summary corrections, and protests. Key opportunities include stopping improper tariff stacking; leveraging USMCA and reciprocal exemptions for the EU, Japan, and South Korea; claiming in-transit and time-of-entry relief; applying the 20% U.S.-content rule with separate entry lines; and correcting steel/aluminum content valuation, U.S.-melted/smelted, and Chapter 98 claims. The guidance also flags the 200% 232 rate on Russian or unknown-origin aluminum (not to be combined with IEEPA) and supports liberal 19 USC 1520(d) refunds—including IEEPA on USMCA-eligible entries on or after March 7, 2025—making immediate entry reviews worthwhile.
CIT: Crypto Mining PCAs Duty-Free, But China 301 Still Applies
STR Trade Report •February 13, 2026
The Court of International Trade classified cryptocurrency-mining printed circuit assemblies as ADP machine parts under HTSUS 8473.30.1180 (base duty-free) but held they do not qualify for any Section 301 exclusions. The court rejected graphics-related PCA exclusions and the unfinished logic board exclusion, finding the boards neither render/enhance graphics nor are unfinished, so China-origin units remain subject to the 301 tariff. Importers should reassess exclusion strategies and product specs for similar accelerator or mining boards.
Trade Remedies and Enforcement Actions
AD/CVD Update: Mattress Circumvention Probe, PET Film Duties Poised to Stay
STR Trade Report •February 13, 2026
U.S. trade authorities launched a circumvention inquiry into whether mattress components from Malaysia, Mexico, and Poland assembled in the U.S. evade existing antidumping orders. In sunset reviews, they found revoking PET film AD orders on China, India, Taiwan, and the UAE would likely prompt renewed dumping (max margins: China 76.72%, India 24.1%, Taiwan 8.99%, UAE 4.05%) and that revoking India’s CVD order would likely see subsidies at 18.57–29.45%, signaling duties are likely to remain. Preliminary reviews set a 3.54% dumping margin and 5.0%/20.1% subsidy rates for Spanish ripe olives (2023–2024/2023), while Malaysian plastic bags and silicon metal posted zero dumping margins for Aug 1, 2023–Jul 31, 2024.
U.S. sets steep AD/CVD on erythritol, HFC; other reviews
STR Trade Report •February 12, 2026
Commerce issued final AD/CVD determinations on Chinese erythritol with antidumping margins of 85.04% and 184.26% and countervailing subsidy rates of 4.54%–8.63%, and released preliminary review results imposing a 182.61% dumping margin on Chinese HFC blends (POR: Aug. 1, 2023–July 31, 2024). Preliminary margins were also set at 3.02% for Korean low‑melt polyester staple fiber, 3.03% for Taiwanese forged steel fittings (POR: Sept. 1, 2023–Aug. 31, 2024), and 0%–16.87% for Korean large power transformers (POR: Aug. 1, 2023–July 31, 2024). Importers should anticipate adjusted cash deposits and assess sourcing and past entries ahead of final results.
Philippines Opens Safeguard Investigation on Ceramic Tile Imports
WTO Latest News •February 9, 2026
The Philippines launched a safeguard investigation into ceramic tile imports on 5 February 2026 and notified the WTO’s Committee on Safeguards on 10 February (notification G/SG/N/6/PHL/23). Importers, exporters, and other interested parties have five days from publication of the domestic notice to identify as interested parties and submit evidence; inquiries should be directed to the Department of Trade and Industry’s Bureau of Import Services. If increased imports are found to cause or threaten serious injury, the government could impose temporary restrictions (e.g., tariffs or quotas), affecting market access and pricing for tile shipments to the Philippines.
Investment and Global Policy Watch
Treasury seeks input on CFIUS reforms, considers Known Investor fast-track
STR Trade Report •February 13, 2026
Treasury is inviting public comments by March 18 on how to streamline aspects of the CFIUS review process while maintaining rigorous national security screening, potentially informing statutory and regulatory reforms. Proposals under consideration include accepting pre-filing information and creating a Known Investor Program to expedite low-risk deals from allied investors, along with improvements to interactions, mitigation terms, and compliance monitoring to speed approvals and increase predictability.
USTR Receives Section 301 Petition on Korea’s Coupang Policies
USTR Press Releases •February 11, 2026
USTR received a Section 301 petition alleging Korea’s acts, policies, and practices related to Coupang are unfair and burden U.S. commerce. By statute, USTR has 45 days to decide whether to initiate an investigation and may seek public comments; a probe could lead to negotiated changes or new U.S. trade measures, including tariffs. Companies with exposure to Korean e-commerce and cross-border retail should monitor the docket and prepare input on potential impacts.
WTO opens fourth review of Papua New Guinea’s trade regime
WTO Latest News •February 10, 2026
Papua New Guinea’s fourth WTO Trade Policy Review takes place on 11 and 13 February 2026, with the Trade Policy Review Body examining reports from the WTO Secretariat and the PNG government. The review enhances transparency on PNG’s trade regime—covering areas such as tariffs, market access, and regulatory measures—helping traders and investors assess compliance needs and market prospects.
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