Air, Feature, Freight News, Logistics, Sea

US Customs Changes Raise Importer Stakes

[ November 5, 2026   //   Gary Burrows ]

U.S. importers and logistics providers face a widening list of Canadian tariffs, new low-value shipment requirements and increased enforcement scrutiny as federal agencies reshape customs procedures and pursue tariff evasion.

U.S. Customs and Border Protection expanded the range of Canadian products subject to an additional 50 percent Section 338 duty effective Oct. 30. The revision added 100 Harmonized Tariff Schedule classifications while removing 22 classifications from the additional duty.

The newly covered classifications include certain food and chemical products, plastics, wood and paper products, carpets and textiles, machinery, tools, electronics and medical and measuring equipment.

Products removed from the additional duty include certain classifications covering plastics, plywood, paper and packaging products, refrigeration equipment, machinery and agricultural equipment.

The changes apply to affected Canadian goods entered for consumption, or withdrawn from warehouse for consumption, beginning at 12:01 a.m. Eastern time Oct. 30. CBP said importers, brokers and other filers should use HTSUS heading 9903.03.14 for the newly covered merchandise.

Specified Chapter 98 entries, qualifying civil aircraft and certain other products remain excluded. The additional Section 338 duties are eligible for drawback.

The adjustment is the latest in a series of changes to the Canadian tariff program since the 50 percent duties took effect Aug. 22. Lists were revised in September and again under an Oct. 23 presidential proclamation.

The changing classifications require importers and customs brokers to verify product codes against CBP’s latest list rather than rely on the status of previous shipments. They also add uncertainty to cross-border pricing, inventory decisions and transportation planning.

The duties are being challenged in the U.S. Court of International Trade. Gellert Global Group Corp. filed a complaint Oct. 20 questioning the administration’s authority to use Section 338 and alleging that some newly covered products were added without the required waiting period. The company is seeking declaratory and injunctive relief, duty refunds and class certification.

The lawsuit remains in its early stages and does not suspend the duties.

Low-value filings face overhaul

Separately, CBP has proposed major changes to informal entries for shipments valued at $2,500 or less.

The proposal would require Entry Type 11 information to be filed electronically before or on the date of importation. Filers also would have to provide the name and address of the final delivery party when that party differs from the ultimate consignee.

CBP also proposes requiring customs bonds for Entry Types 11 and 13. A breach of the bond conditions could result in liquidated damages of at least $1,000 or the value of the merchandise, whichever is greater.

The rule would establish Entry Type 13 as the electronic informal-entry process for international mail and require additional shipment information from filers and carriers. CBP said the changes are intended to improve advance targeting and enforcement after the suspension of duty-free de minimis treatment shifted more shipments into other informal-entry procedures.

Comments on the proposed rule are due Dec. 7.

Some Entry Type 13 requirements will arrive before the broader proposal is completed. CBP has extended the mandatory implementation date for affected international mail from Oct. 22 to Jan. 20, 2027.

Beginning Jan. 20, international postal shipments subject to Section 201, 232 or 301 duties, or to the jurisdiction of a Partner Government Agency, must be filed electronically through Entry Type 13 to qualify for informal entry. Otherwise, a formal entry will be required.

CBP said the extension gives importers, brokers and logistics providers additional time to modify systems and operating procedures. The agency is encouraging voluntary use of Entry Type 13 during the transition.

Refund litigation continues

Importers also are awaiting further direction on refunds of tariffs previously collected under the International Emergency Economic Powers Act.

The Court of International Trade on Oct. 8 certified a class consisting of importers of record that paid the challenged IEEPA duties between Feb. 1, 2025, and Feb. 19, 2026. Companies that filed separate actions seeking refunds are excluded from the class.

CBP has been processing eligible refunds through its Consolidated Administration and Processing of Entries system. The court said approximately $126 billion in duties and interest had been refunded as of Oct. 2.

Procedures for importers covered by the newly certified class remain under development, however. Companies evaluating whether to rely on the class proceeding or pursue individual claims should obtain legal advice based on their entries and liquidation dates.

Enforcement becomes a priority

The Justice Department has meanwhile placed tariff evasion, import fraud and forced-labor violations among its corporate enforcement priorities.

An October directive instructs federal fraud prosecutors to consider management knowledge, participation and efforts to conceal conduct when deciding whether to bring charges or negotiate resolutions.

The directive builds on the federal Trade Fraud Task Force established in 2025. The task force coordinates civil and criminal enforcement involving unpaid duties, false country-of-origin declarations, misclassification and other customs violations.

For importers and their logistics partners, the developments increase the importance of product classification, origin documentation, customs data and internal compliance controls. They also create another operational deadline as brokers, postal operators and technology providers prepare for electronic low-value shipment filings in early 2027.

Tags: U.S. Customs and Border Protection