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19 10, 2026

IEEPA Refund Class Certified: Why Importers With Significant Phase 3 Refunds Should Still File Their Own Suit 

By |2026-10-19T17:30:39-04:00October 19, 2026|U.S. Customs and Border Protection (CBP)|0 Comments

By Jennifer Diaz and David Craven  |  October 2026 

On October 8, 2026, the U.S. Court of International Trade certified a nationwide class of importers of record that paid IEEPA duties and have not filed their own refund lawsuits, in Freestyle World, Inc. v. CBP, Ct. No. 26-01088. Certification does not issue refunds, and class members do not have access to CAPE Phase 3, which CBP opened on October 6 for finally liquidated entries of importers holding their own court orders. Importers with significant refunds on finally liquidated entries should weigh filing their own case now rather than waiting on the class. 

Key Takeaways 

  • On October 8, 2026, the U.S. Court of International Trade (CIT) certified a class of importers of record that paid IEEPA duties between February 1, 2025, and February 19, 2026, excluding any entity that separately filed its own refund action. 
  • Class certification is not a refund order. The CIT has not entered classwide relief, and further proceedings are pending. 
  • CBP deployed CAPE Phase 3 on October 6, 2026, for finally liquidated entries of importers that filed suit and hold court orders directing reliquidation. Class members do not currently have Phase 3 access through the class. 
  • As of October 19, 2026, the government had not appealed the class […]
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16 10, 2026

Breaking Trade News: CBP Informal Entry Deadline Extended, 60 Month Prison Sentence for Export Violations

By |2026-10-16T17:00:59-04:00October 16, 2026|news, Snapshot|0 Comments

This week’s recap of the latest customs and international trade news:  

U.S. Customs and Border Protection (CBP)  

  • CBP announced the extension of the compliance date for new informal entry procedures for international mail from Oct. 22, 2026, to Jan. 20, 2027. 
  • CBP officers in Indianapolis intercepted a shipment containing 300 counterfeit Audemars Piguet watches. Had these items been genuine, the shipment would have had a combined manufacturer’s suggested retail price of $12 million.
  • CBP announced email or text message verification will be required for Automated Clearinghouse refund information changes made in ACE starting Oct. 10. 

Department of Justice (DOJ)  

  • DOJ announced that a Bosnian national was sentenced to 60 months in federal prison after pleading guilty to export and sanctions violations involving an attempted transaction for North Korean anti-aircraft missiles.  

Federal Maritime Commission (FMC)  

  • The FMC is proposing fees on all Spanish-flagged vessels after an investigation revealed the government of Spain created unfavorable shipping conditions for U.S.-flagged vessels.  
  • The FMC published its latest Ocean Transportation Intermediary (OTI) license applicant update, identifying companies seeking new ocean freight forwarder and NVOCC licenses, […]
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15 10, 2026

U.S. Government Continues to Signal Sanctions Enforcement as a Priority: Three Recent Cases  

By |2026-10-15T17:10:37-04:00October 15, 2026|U.S. Department of Justice (DOJ), U.S. Office of Foreign Assets Control (OFAC)|0 Comments

The U.S. government continues to demonstrate its commitment to enforcing sanctions and export control laws, with three recent announcements from the Department of Justice (DOJ) and the Department of the Treasury’s Office of Foreign Assets Control (OFAC) highlighting the risks businesses and individuals face when compliance obligations are overlooked. 

Between October 9 and October 14, 2026, federal authorities announced a five-year prison sentence involving North Korean sanctions violations, a settlement with an international freight forwarding company, and an $11.6 million settlement with one of the nation’s largest banks. 

Although the cases involve different industries and circumstances, they reinforce a common message: sanctions enforcement extends across the global supply chain. 

DOJ: Five-Year Prison Sentence for North Korean Sanctions Violations 

On October 14, 2026, DOJ announced that Sasa Micev, a Bosnian national and international arms dealer, was sentenced to 60 months in federal prison after pleading guilty to violations of the International Emergency Economic Powers Act (IEEPA) and North Korean Sanctions Regulations. 

According to DOJ, Micev conspired with others to broker the purchase of North Korean SA-18 Igla portable surface-to-air missiles without the required authorization from OFAC. The scheme involved discussions about pricing, efforts to obtain the weapons using falsified documentation, and a meeting in Turkey to complete the transaction. The proposed sale ultimately fell through following a pricing dispute. 

OFAC: Freight Forwarder Agrees to $175,015 Settlement 

On October 9, 2026, OFAC announced a $175,015 settlement […]

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15 10, 2026

Commerce Defines “U.S. Content” for USMCA Steel and Aluminum Articles Under Proclamation 11032 

By |2026-10-15T17:04:27-04:00October 15, 2026|U.S. Bureau of Industry and Security (BIS), U.S. Customs and Border Protection (CBP)|0 Comments

On October 14, 2026, the Bureau of Industry and Security (BIS) published a Federal Register notice defining “U.S. content” for products of Canada and Mexico that qualify for preferential tariff treatment under the United States-Mexico-Canada Agreement (USMCA), for purposes of the Section 232 duties under clause (2)(d) of Proclamation 11032. The guidance is effective for products entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. Eastern Time on October 14, 2026. Importers of Canadian and Mexican aluminum and steel articles listed in Annex I-C to the Proclamation, and the customs brokers and filers who prepare their entries, should review how they value U.S. content before their next entry. 

Key Takeaways 

  • BIS defines U.S. content in two parts: (1) the value attributable to parts wholly obtained, entirely produced, or substantially transformed in the United States; and (2) to the extent not otherwise accounted for in part (1), the value attributable to steel melted and poured, aluminum smelted and cast, and/or copper smelted and cast in the United States. 
  • The guidance applies to entries on or after 12:01 a.m. Eastern Time on October 14, 2026. 
  • Under clause (2)(d), the 25 percent duty applies only to the non-U.S. content of USMCA-qualifying Annex I-C articles of Canada and Mexico, and the total effective duty may not be […]
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14 10, 2026

DOJ Sues Tile Importer and CEO for $67.9 Million in Duties Over Alleged Transshipment and Shell Importers of Record

By |2026-10-14T10:22:02-04:00October 14, 2026|U.S. Department of Justice (DOJ)|0 Comments

On September 28, 2026, the Department of Justice filed a civil complaint in the U.S. Court of International Trade against Uni-Tile & Marble, Inc. and its CEO, Xin Mian Pan, seeking $67,922,260.09 in unpaid duties and a $222,537,664.95 fraud penalty under 19 U.S.C. § 1592. The complaint alleges that Chinese ceramic tile, wooden cabinets and vanities, and quartz surface products subject to antidumping, countervailing, and Section 301 duties were transshipped through Malaysia, undervalued, misdescribed, and later entered under shell importers of record. In our view, the case is a roadmap for importers of AD/CVD-covered goods, their executives, and their sureties on how one set of entries can move from an EAPA determination to criminal charges and a civil penalty suit. 

Key Takeaways 

  • DOJ filed a civil complaint at the U.S. Court of International Trade on September 28, 2026, against Uni-Tile & Marble, Inc. and its CEO, Xin Mian Pan, under 19 U.S.C. § 1592. 
  • The fraud counts seek $67,922,260.09 in unpaid duties and a $222,537,664.95 penalty, with gross negligence and negligence pleaded in the alternative. 
  • The complaint alleges transshipment through Malaysia, undervaluation, misdescription, and entries under shell importers of record covering approximately 503 entries. 
  • The civil suit follows an EAPA evasion determination, CBP penalty proceedings, and a separate criminal indictment that also […]
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9 10, 2026

Breaking Trade News: CAPE Phase 3 Live, DOJ Trade Fraud Directive, Outbound Investment Penalty

By |2026-10-09T12:11:19-04:00October 9, 2026|news, Snapshot|0 Comments

This week’s recap of the latest customs and international trade news:  

U.S. Customs and Border Protection (CBP) 

  • Phase three of the Consolidated Administration and Processing of Entries (CAPE) refund system was deployed by CBP on October 6. Phase 3 covers finally liquidated entries from importers that filed suit at the CIT and for which the Court has ordered reliquidation. 
  • CBP issued a proposed rule that would create a framework for low-value imports after the end of de minimis and formally establishing new informal Entry Type 13 for merchandise entering through the mail. Comments are due December 7. 
  • CBP’s Agriculture and Prepared Products Center of Excellence and Expertise (APP) in Miami uncovered a tariff evasion scheme involving tuna caught by foreign-flagged vessels. The investigation uncovered over $8M in lost revenue and almost $9M in expected penalties.

Department of Justice (DOJ) 

  • On October 1, 2026, DOJ’s National Fraud Enforcement Division issued Directive 26-12, which makes trade fraud a corporate enforcement priority and lists ten factors prosecutors must weigh in deciding whether to charge a company.  

U.S. Trade Representative (USTR) 

  • USTR announced a public consultation process ahead of the 2027 joint review of the United States-Mexico-Canada […]
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9 10, 2026

CBP Proposes Bonds and Earlier Filing for Low-Value Informal Entries: Comments Due December 7 

By |2026-10-09T11:49:46-04:00October 9, 2026|ACE, Customs Broker, Import, U.S. Customs and Border Protection (CBP)|0 Comments

U.S. Customs and Border Protection (CBP) has issued a Notice of Proposed Rulemaking (NPRM) for Low-Value Shipments that would change informal entry requirements for shipments valued at $2,500 or less, including shipments arriving through international mail. The proposal would add a bond requirement for informal entries, move the Type 11 filing deadline earlier, and create a new electronic Entry Type 13 for mail. Importers, e-commerce sellers, licensed customs brokers, and carriers that handle low-value shipments are affected, and comments are due December 7, 2026. 

Key Takeaways 

  • CBP proposes that all Type 11 (informal) and new Type 13 (informal mail) entry filers obtain a basic importation and entry bond, single transaction or continuous, before release. 
  • The proposed Type 11 filing deadline moves from “within 15 calendar days after landing,” to “upon or before the date of importation”, and Type 11 entries would be filed electronically. 
  • A new Entry Type 13 for international mail of $2,500 or less would be filed electronically by the owner or purchaser in ACE or by a licensed customs broker. 
  • Carriers filing inward manifests would report the mail tracking number, and unentered mail of $2,500 or less would be considered abandoned after 15 days. 
  • Comments are due December 7, 2026, under docket USCBP-2026-0298 on regulations.gov. 

Low-Value Shipments Face New Entry Requirements 

CBP […]

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9 10, 2026

BIS Announces $2 Million Settlement with Lambda Research Corporation for 66 Export Control Violations 

By |2026-10-09T11:34:59-04:00October 9, 2026|EAR, Enforcement, Export, Penalty, U.S. Bureau of Industry and Security (BIS)|0 Comments

On October 2, 2026, the U.S. Department of Commerce’s Bureau of Industry and Security (BIS) announced a $2 million administrative settlement with Massachusetts-based Lambda Research Corporation involving 66 alleged violations of the Export Administration Regulations (EAR). The case involved exports of optical and illumination design software, automatic software updates, and transactions with parties on the Entity List and Unverified List. 

Key Takeaways 

  • EAR99 does not mean unrestricted. Even software classified as EAR99 may require an export license when the recipient is on the BIS Entity List. 
  • Automatic software updates can constitute exports. BIS charged Lambda with violations involving software updates transmitted to restricted parties after their addition to the Entity List. 
  • Restricted-party screening must be ongoing. A customer who was not restricted when a transaction began may become subject to licensing requirements later. 
  • Distributors do not eliminate export compliance obligations. Exporters must evaluate the actual end users of their products, including transactions conducted through intermediaries. 
  • The Unverified List creates additional compliance requirements. Certain transactions involving Unverified List parties require a UVL statement even when an export license is not otherwise required. 
  • Informal compliance efforts are insufficient. BIS cited Lambda’s lack of written export compliance procedures, employee training, and designated compliance personnel. 
  • Voluntary self-disclosure does not eliminate penalties. […]
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9 10, 2026

Treasury’s First Outbound Investment Penalty: $200,000 Against Amidi LLC 

By |2026-10-09T11:26:48-04:00October 9, 2026|EAR, Enforcement, Export, U.S. Bureau of Industry and Security (BIS)|0 Comments

On October 7, 2026, the U.S. Department of the Treasury announced the first civil penalty issued under its Outbound Investment Security Program (OISP): $200,000 against Amidi LLC, the U.S. parent company of the organization known as Plug and Play Tech Center, for failing to notify Treasury of an investment its Chinese fund subsidiary made in a Chinese embodied artificial intelligence company. 

The underlying investment was approximately $92,478. U.S. investors, venture funds, accelerators, and corporates with offshore investment vehicles should take note: the notification obligation reaches transactions by a U.S. person’s controlled foreign entities, and Treasury has now penalized a missed filing on a small deal. 

Key Takeaways 

  • Treasury imposed a $200,000 civil penalty on Amidi LLC for failing to notify Treasury of an investment of approximately $92,478 in a Chinese AI and robotics company. 
  • The investment was made by Amidi’s Chinese fund subsidiary. The OISP regulations require a U.S. person to notify Treasury of a notifiable transaction by its controlled foreign entity. 
  • The current rules contain no general de minimis threshold for notification, and the existing regulations at 31 CFR Part 850 remain in effect while Treasury implements the COINS Act. 

What Happened 

On April 19, 2025, a Chinese fund owned by Amidi invested approximately $92,478 in Shanghai Qiongche Intelligent Technology Company Limited (Noematrix), […]

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8 10, 2026

A Warning for Importers: A CBP Prior Disclosure Does Not Count for DOJ

By |2026-10-09T11:15:19-04:00October 8, 2026|U.S. Department of Justice (DOJ)|0 Comments

On October 1, 2026, DOJ’s National Fraud Enforcement Division issued Directive 26-12, which makes trade fraud a corporate enforcement priority and lists ten factors prosecutors must weigh in deciding whether to charge a company. In recent remarks, a government official added a point every importer should hear: a prior disclosure filed with CBP does not count as a voluntary self-disclosure for DOJ purposes. Importers, their executives, and the companies that buy from them, now face a dedicated DOJ trade fraud section, data-driven lead generation, and a sharp focus on country of origin. 

KEY TAKEAWAYS 

  • DOJ’s National Fraud Enforcement Division issued Directive 26-12 on October 1, 2026, listing customs-related fraud as one of four corporate investigation priorities and naming ten factors prosecutors must place great weight on when deciding whether to charge a company. 
  • A CBP prior disclosure is not a voluntary self-disclosure to DOJ. DOJ’s Corporate Enforcement Policy states that disclosures made only to regulatory agencies generally do not qualify. 
  • Country of origin fraud is the leading pattern. The government official said more than half of the trade fraud cases over the past year involved country of origin. 
  • Never filing an entry with CBP is not a defense. Earlier this year, a company pleaded guilty and paid a $6,382,000 fine for buying imported plywood it knew(or was willfully blind to the fact […]
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