New Vessel Fees Go Live Oct. 14; Enforcement Tightens, Tariff Landscape Shifts, WTO Reform Advances
NEWSLETTER | Trade Insight AI
New Section 301 Vessel Fees Start Oct. 14; CBP Urges Prepayment
STR Trade Report • October 8, 2025
Effective Oct. 14, the U.S. will impose Section 301 fees—set to increase regularly over the next three years—on Chinese-owned or -operated vessels, Chinese-built vessels, and foreign-built vehicle carriers entering U.S. ports, following USTR’s determination that China’s maritime strategy burdens U.S. commerce. CBP says operators are responsible for determining liability and should pay at least three business days before arrival; without proof of payment at first U.S. port entry, lading/unlading may be denied and clearance withheld.
Enforcement & Compliance: Valuation, Export Controls, and FDA DWPE
Prison Terms, Heavy Fines for $51M Customs Undervaluation Scheme
STR Trade Report •October 10, 2025
DOJ secured prison sentences and multi-million-dollar penalties after an importer and two executives evaded about $8.4 million in duties by undervaluing more than $51 million in imports through false CBP filings. The company was fined $11.5 million, ordered to pay over $15 million in restitution, and placed under federal monitoring; the president received 103 months in prison plus an $8 million fine and $19+ million in restitution, and another officer received 84 months, a $500,000 fine, and restitution. DOJ also linked the operation to bulk-cash laundering and tax fraud—failure to file currency transaction reports and omission of $17+ million in sales—underscoring heightened enforcement risk around customs valuation and financial reporting.
BIS Fines Firm $685,051 for Unauthorized EAR99 Exports to Iran
STR Trade Report •October 9, 2025
BIS imposed a $685,051 penalty on a company for knowingly exporting EAR99 items to an Iranian end user without authorization and concealing the activity from regulators. The order requires three annual export compliance audits, company-wide training within one year, and imposes a three-year denial of export privileges, suspended if conditions are met. The case underscores that EAR99 items still require authorization for embargoed destinations and that willful violations carry substantial penalties and licensing consequences.
FDA Expands Import Alerts for Foods, Medical Devices, and Lasers
STR Trade Report •October 8, 2025
FDA issued or modified import alerts this week covering a broad range of products—from foods (basmati rice, shrimp, enoki mushrooms, figs, spinach) to medical devices and material‑processing lasers—from countries including India, China, Mexico, and Indonesia. Affected entries may face detention without physical examination (DWPE) at the border, making proactive documentation, testing, and verification critical to avoid delays or refusal; importers should review red/green list status and supplier compliance histories.
Immediate Deadlines & System Changes: 232 Comments, ACE Updates, Classification Shift
Oct. 21 Deadline: BIS Weighs 95 New Section 232 Tariff Additions
STR Trade Report •October 9, 2025
BIS has posted 95 requests to expand Section 232 tariffs to additional derivative steel and aluminum articles, with public comments due by Oct. 21. The agency will assess whether each product is a covered derivative and whether import growth threatens national security, issuing a decision within 60 days and adding any approved items via Federal Register notice. With prior rounds approving most inclusion requests and recurring filing windows each January, May, and September, importers and manufacturers should review potential exposure and prepare submissions.
CBP Updates ACE Timeline: Manifest Rejections, DIS Phase-Out, Portal Automation
STR Trade Report •October 10, 2025
CBP issued an updated ACE development schedule with near-term changes: automated rejection of manifests lacking adequate cargo/party data (deployed Sept 27), drawback guardrails blocking claims tied to HTSUS Chapter 99 duties (Sept 16), importer portal self-creation (Oct 31), a pay.gov online payment option (October), and a decentralized-identity interoperability pilot beginning Nov 8. As of Dec 1, DIS will no longer be accepted for outbound cargo declarations—electronic export manifests become the preferred method—while larger upgrades run into 2026, including multi-HTS duty calculations (Jan 2026), GBI expansion and in-bond modernization (Mar 2026), detention/ocean/USPS data integrations (Feb–Mar 2026), and an electronic ATA carnet (Apr 2026), prompting trade teams to align systems and compliance plans.
CBP Proposes 6210 Reclassification for Men’s Jackets; Potential Duty Cuts
STR Trade Report •October 10, 2025
CBP proposes reclassifying certain men’s outerwear jackets as garments of specified fabrics under HTSUS 6210.20.50 (7.1% duty), rather than under 6201.93, applying GRI 3(c) because neither outer-shell fabric imparts essential character. The move would revoke NY K82923 and could lower duties on non‑water‑resistant styles from 27.7% to 7.1% (water‑resistant styles remain 7.1%). Comments are due Nov. 1; apparel importers of laminated‑shell garments should assess potential impacts.
Agencies Seek Comments on CBP Entry Summary Revision, Food Facility Forms
STR Trade Report •October 8, 2025
Multiple U.S. agencies are soliciting feedback on new, revised, and extended information collections, including a revision to CBP Form 7501 (entry summary), extensions of FDA food facility registration Forms 3537/3537a, and a new USDA collection for live animal and animal product import permits. CBP also proposes extensions for several customs documentation and recordkeeping requirements (e.g., AGOA textile certificates of origin, user fee and vessel forms, origin marking), while CPSC would extend third‑party testing for children’s products. Importers, brokers, and food/ag stakeholders should review potential changes to filing processes and compliance burdens and consider submitting comments.
Policy & Market Access: Tariffs, Steel Overcapacity, and FTZ Expansion
Tariffs Rise, FTAs Accelerate: U.S. Trucks, EU Steel, China Ports
STR Trade Report •October 9, 2025
The U.S. will impose expanded tariffs on imported trucks effective Nov. 1, while Trump’s tariff stance is pushing partners to fast-track free trade agreements to offset potential U.S. market losses. China’s new regulations allow “necessary countermeasures,” including fees, port-entry bans, and data restrictions on vessels serving targeted countries, and the EU plans to cut steel import quotas and raise tariffs to 50% even as current safeguards expire in mid-2026. Collectively, these moves signal tighter market access, higher landed costs, and elevated shipping risk—prompting traders to model scenarios, leverage FTAs, and adjust sourcing and routing.
U.S. Backs Joint Framework to Curb Global Steel Overcapacity at GFSEC
USTR Press Releases •October 10, 2025
On October 10, 2025, Ambassador Jamieson Greer delivered virtual remarks to the Global Forum on Steel Excess Capacity’s Ministerial, highlighting Trump administration actions to counter steel overcapacity and its impact on U.S. producers and workers. He endorsed developing a joint framework with like‑minded partners to address market distortions and restore a level playing field. The message signals sustained U.S. focus on coordinated remedies that could shape partner alignment and trade measures in the steel sector.
FTZ Board Approves Semiconductor Production, Expands FTZ 2 to St. Tammany Parish
STR Trade Report •October 9, 2025
The Foreign-Trade Zones Board authorized semiconductor wafer production at Halo Industries Inc. within FTZ 18 in Santa Clara, California, enabling duty deferral and other FTZ benefits for the operation. It also expanded the service area of FTZ 2 to include St. Tammany Parish, Louisiana, opening FTZ access that can support regional manufacturing and logistics investment.
WTO Watch: Reform, Services Access, MSMEs, and Trade Outlook
WTO Reform Momentum Builds: Decision-Making, Digital Trade, S&D in Focus
WTO Latest News •October 7, 2025
At the 6–7 October General Council, DG Okonjo-Iweala urged modernization while stressing the WTO’s “tools worth preserving,” as members advanced reform talks centered on decision-making and development ahead of a December facilitator’s report. Digital trade took center stage: most support extending the e-commerce moratorium; Japan signaled a December bid to place the E‑Commerce Agreement in Annex 4, while Annex 4 incorporation of the Investment Facilitation for Development pact was blocked for a tenth time. China said it will not seek new special and differential treatment in current and future negotiations, and Saudi Arabia offered to host MC15—developments that could reshape negotiating dynamics heading into MC14.
WTO services council moves on MRAs, LDC waiver; data concerns aired
WTO Latest News •October 3, 2025
WTO members used the 2–3 October Council for Trade in Services meetings to share practical approaches to recognizing professional qualifications, with proposals for an MRA repository, online training, and stronger GATS notifications to unlock market access—especially for smaller providers in developing and least-developed economies. The LDC Group advanced an online survey to operationalize the LDC services waiver ahead of MC14 (March 2026), while members also exchanged concerns over cybersecurity and cross-border data rules and unilateral actions; the next thematic session will focus on the green services economy in December.
WTO MSME Group readies MC14, spotlights IP, digital and finance tools
WTO Latest News •October 3, 2025
On 3 October, the WTO MSME Working Group reviewed new small-business support from WIPO and ITC—ranging from IP enforcement and strategy tools to takeaways from July’s Global SME Ministerial on the green transition, digitalization, and access to finance. Members advanced MC14 preparations by tracking the 2020 MSME Package’s implementation, updates to the Global Trade Help Desk, gender-inclusive coordination, and IDB findings on trade facilitation in Latin America and the Caribbean. For practitioners, the session flags MC14 priorities and highlights practical resources—IP services, digital readiness support, UPU’s TradePost logistics tool, and case studies from Small Business Champions (Silaiwali, NetZero Pallets) and AFRIpads—to help MSMEs formalize, integrate into value chains, and scale exports.
WTO raises 2025 trade forecast on AI goods; 2026 cut
WTO Latest News •October 7, 2025
The WTO lifted its 2025 merchandise trade growth forecast to 2.4% (from 0.9%) after H1 volume rose 4.9%, driven by a 20% surge in AI-related goods and North American frontloading ahead of tariff hikes. The 2026 outlook was cut to 0.5% (from 1.8%) as earlier frontloading, higher tariffs and inventory adjustments pull demand forward and push tariff impacts into 2026, with policy uncertainty and new restrictions the key downside risks. Services export growth is set to slow to 4.6% in 2025 and 4.4% in 2026, while Asia and Africa lead 2025 export gains and North American imports contract.
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