TradeLane

Today, the U.S. Supreme Court ruled that the government cannot use the International Emergency Economic Powers Act (IEEPA) to impose tariffs. This is a significant legal change, but there is no immediate operational impact for importers. Duties under IEEPA must still be paid, and refund questions remain unresolved. IEEPA tariffs will be replaced with a 10% global tariff under Section 122 of the Tariff Act of 1974.

U.S. Customs and Border Protection (CBP) has issued new guidance (CSMS #66319804) that significantly impacts how importers and brokers must report replacement duties under Chapter 99 of the Harmonized Tariff Schedule of the United States (HTSUS). This update specifically affects certain imports from the European Union, Japan, and the United Kingdom—and has direct implications for drawback filers seeking to preserve eligibility.

Update as of July 30, 2025:

President Trump signed an Executive Order that effectively ends the duty-free de minimis treatment under 19 U.S.C. 1321(a)(2)(C) for low-value shipments from all countries, effective August 29. For these imported goods, formal entry and payment of all applicable duties and fees will soon be required.

In an increasingly competitive global marketplace, reducing landed costs without compromising compliance is more critical than ever. One strategic opportunity for U.S. importers lies in leveraging the First Sale for Export (FSFE) valuation methodology. When correctly applied, FSFE can bring significant duty savings while meeting all regulatory expectations from U.S. Customs and Border Protection (CBP).