Logistics
Forwarding | Warehousing and Distribution
Some trade experts noted that the US is one of six members of the UN International Labor Organization that has never ratified a 1932 prohibition on forced labor. The USTR also proposed a lower 301 rate on an as-yet-unspecified volume of textile imports from certain economies. The Section 301 proposal also includes a 76-page list of products exempt from forced labor tariffs, largely products governed by existing trade agreements that have a forced labor prohibition component, such as the United
Economies subject to the proposed forced labor tariffs include China, Vietnam, Mexico, Canada and the EU. PATRICK T. FALLON / Gatty Images
States-Mexico-Canada Agreement( USMCA). The USTR accepted written comments on the proposed 301 tariffs until July 6, with a hearing on the matter scheduled for July 7.
The USTR is also conducting Section 301 investigations on a smaller set of trading partners around structural excess capacity and production in certain manufacturing sectors. It initiated a 301 investigation into Vietnam over inadequate protection of intellectual property rights, meaning Vietnam is subject to three separate 301 investigations.
In a separate development, the US Court of International Trade( CIT) directed CBP Commissioner Rodney Scott to attend a June 9 hearing on whether importers are entitled to refunds on all liquidated customs entries paid under IEEPA. CBP announced in mid-April it would begin the first phase of refunds related to unliquidated entries or liquidated entries less than 80 days old.
The US Department of Justice, meanwhile, said it will appeal the CIT order on refunds of liquidated entries, arguing that importers seeking refunds on such entries should be required to sue for damages individually.
The Section 301 forced labor proposal also came less than two months before the USTR’ s Section 122 tariffs— a 10 % tranche applied globally in the wake of the Supreme Court’ s IEEPA decision— are due to expire.
email: eric. johnson @ spglobal. com
CBP and the Department of Homeland Security are mandated within 180 days to create enhanced methods to fight duty evasion and other customs noncompliance.
The immediate online response to Trump’ s executive order from the customs community has been mixed. On one hand, the order could answer a question that has long dogged customs brokers: Who truly owns the cargo and is thus legally responsible? Others fear that, besides creating more administrative work, the order will give license to customs agents to be heavy-handed.
More scrutiny, more holds
The executive order, which the White House said wouldn’ t take effect immediately, comes as customs brokers and shippers have reported an increase in customs holds placed on their inbound containers since the start of this year. Shipments from Vietnam, a source of goods made in China but misclassified to avoid higher tariffs, receive extra scrutiny, and sourcing shifts to Southeast Asia create unfamiliar origins on customs declarations, raising the interest of agents, various sources tell the Journal of Commerce.
There’ s been a recent increase in customs holds for containers from China at the ports of Los Angeles and Long Beach, said Alexander Owens, an attorney and partner at Pietrangelo Gordon Alfano Bosick. CBP doesn’ t disclose data on how many times it stops a container for inspection, something that delays shipments and opens cargo owners and consignees to additional storage fees.
But there’ s no doubt customs enforcement has ramped up. The Department of Justice through the first five months
www. joc. com of the year has received more than $ 570.6 million in judgements and settlements tied to government contracting fraud, according to Owens, who represents whistleblowers who make claims under the False Claims Act, legislation that allows the federal government to pursue fraud committed against federal programs.
“ The rise in customs holds is likely the result of a confluence of several factors: a protectionist administration, the end of the de minimis exemption, and CBP’ s increasing use of AI to screen shipments for anomalies,” Owens said.“ Frankly, given how hawkish this administration is on trade, it would be unusual if holds didn’ t rise.”
Higher tariffs in Trump’ s second term have spurred some shippers to turn to a delivered duty paid( DDP) structure where the seller assumes all risks and costs but sometimes undervalues the tariffs that were owed, said Steven Heid, president of SJ Stile Associates, a customs broker and forwarder. As a result, CBP is taking a harder look at overseas shippers, foreign entities and those using questionable structures in duty payment, he said.
“ From an industry perspective, many customs brokers, freight forwarders, sureties, and compliance professionals began noticing increased scrutiny as tariffs became a larger component of landed costs,” Heid said.“ There is also a growing belief within the trade community that CBP’ s increased use of advanced data analytics and artificial intelligence allows the agency to more effectively identify unusual trade patterns, importers-of-record changes, valuation anomalies, country of origin concerns and significant shipping arrangements over time.”
email: mark. szakonyi @ spglobal. com
July 6, 2026 | Journal of Commerce 27