Key Takeaways
- CBP is scrutinizing Form 5106 records, broker powers of attorney, and origin claims, so stale importer data can now hold cargo.
- Comments on the supply chain visibility disclosure proposal close December 1, and comments on the low-value shipments rule for entries of $2,500 or less close December 7.
- IEEPA refunds are flowing through CBP’s CAPE program, and Phase 3 opened October 6 for finally liquidated entries.
- Importers that didn’t litigate face a two-year court claim limit that runs per entry, with the earliest entries reaching it in February 2027, so entry audits should start now.
CBP Tightens Importer Identity Checks as IEEPA Refunds Flow
Agency: U.S. Customs and Border Protection | Effective: CAPE Phase 3 live October 6; comments due December 1 and December 7 | Authority: 19 CFR § 24.5; 19 CFR Part 111; IEEPA, 50 U.S.C. § 1701
You need current Form 5106 data and a broker-verified power of attorney on file to keep entries moving. If you paid IEEPA duties and weren’t a plaintiff, your earliest entries reach the two-year court claim limit in February 2027.
Three fronts at once. CBP is pressing on importer identity, broker authority, and country of origin while IEEPA refunds flow through ACE [7]. Whether you file in-house or use a consumer goods customs broker, this is the quarter to clean your records. Inaccurate data and inefficiencies could cost you twice: held boxes and missed refunds.
Form 5106 records. Under 19 CFR § 24.5, confirm that the legal name, addresses, officers, and tax ID on your Form 5106 match your current corporate filings [1]. Mergers, new warehouses, and officer turnover are the usual sources of discrepancies.
Where mismatches hurt most. CBP’s tighter validation checks your Form 5106 data against ultimate consignee records and the entry itself [1]. When those records don’t match, CBP can hold the shipment until your broker resolves the discrepancy, and storage and demurrage charges accrue during the hold.
Broker authority. Make sure your broker has verified you directly before acting on your power of attorney, as the modernized 19 CFR Part 111 rules require [2]. Expect brokers to ask you to sign new POAs directly, rather than accepting one passed along by a freight forwarder or other intermediary [3].
What to hand over. Brokers will ask for corporate registry filings, bank details, and identification for the officers who sign [2]. Build that package for every importing entity, including subsidiaries that file under their own numbers.
Origin scrutiny. Enforcement is testing whether goods routed through Southeast Asia actually originate there, to stop circumvention of Section 301 duties on Chinese goods [4]. Electronics in HTS chapter 85 and aftermarket auto parts in chapter 87 moving through Vietnam, Malaysia, or Thailand are high priority for CBP.
Proof of transformation. To claim a new country of origin, you need factory-level bills of materials and production records showing the goods became a new article with a new name, character, or use. If the work done in Southeast Asia is limited to simple assembly, packaging, or finishing, China usually remains the country of origin, and Section 301 duties still apply.
The duty at stake. A failed origin claim exposes you to back duties at the Section 301 rate, 25% for most List 1 to 3 goods, plus potential penalties [4]. That exposure can reach other entries from the same supply route, not just the shipment under review.
December 1 deadline. File comments by December 1 on CBP’s advance notice on heightened import disclosures for supply chain visibility if it would add work to your onboarding or entry process [5].
December 7 deadline. Comments on the low-value shipments proposed rule, which covers informal entries of $2,500 or less and a new electronic mail entry type, close December 7 [6]. Parcel and e-commerce importers should weigh in if the proposal changes how their informal shipments clear.
Why comments count. Comments put your compliance cost on the record before CBP finalizes the rules. Concrete figures, such as added staff hours per entry or extra days to release, carry more weight than general objections.
Refund pace. IEEPA refunds are flowing through CBP’s CAPE program, and Phase 3 launched on October 6 for finally liquidated entries of importers with court cases [7]. CBP publishes CAPE deployment notices through its ACE channels [8], and brokers are auditing client eligibility now.
IEEPA, not Section 301. These refunds cover duties paid under IEEPA tariff actions, not Section 301 duties. Keep the two separate in your ledgers, because Section 301 duties remain owed and don’t qualify for the refund process.
February 2027 clock. Importers that weren’t plaintiffs in the IEEPA litigation face a two-year limit on a Court of International Trade claim that runs per entry from when the duty was paid, so the earliest IEEPA entries reach it in February 2027 and later entries follow [7]. Reconcile your entry summaries against your duty ledgers now so you identify every eligible entry well before then.
Liquidated entries first. After an entry liquidates, you generally have 180 days to file a protest. For older entries, that window can close months before the court deadline. Sort your IEEPA-duty entries by liquidation date and work the oldest first.
Apparel and consumer goods. Apparel in HTS chapters 61 through 63 and general consumer goods already face heavy UFLPA documentation demands [9]. An importer identity mismatch can add a second hold to a container already under forced labor review, and each hold must clear before CBP releases the goods.
Electronics and sporting goods. Tech accessories and sporting goods in chapters 85 and 95 often clear through third-party filers. Confirm that each filer holds a current, broker-verified POA for your importer number.
Importer of Record Liability & Exposure Matrix
| Compliance Trigger | Authority | Importer Exposure | What You Do |
|---|---|---|---|
| Form 5106 identity data | 19 CFR § 24.5 [1] | Entry rejections and release holds | Match name, addresses, officers, and tax ID in ACE to your corporate filings |
| Broker POA validation | 19 CFR Part 111 [2], [3] | Release delays on unverified accounts | Execute POAs directly with your licensed broker |
| Southeast Asia origin claims | Section 301, 19 U.S.C. § 2411 [4] | Back duties at Section 301 rates, 25% on most List 1 to 3 goods, plus penalties | Hold factory bills of materials and production records |
| Supply chain visibility disclosure proposal | Federal Register notice [5] | New disclosure obligations | Comment by December 1 |
| Low-value shipments ($2,500 or less) | Federal Register notice [6] | Changed filing requirements for informal entries and mail | Comment by December 7 |
| IEEPA refund claims | IEEPA, 50 U.S.C. § 1701; CAPE Phase 3 [7], [8] | Refund claims time-barred per entry | Identify eligible entries now; earliest entries reach the court limit in February 2027 |
5-Point Importer Compliance Action Checklist
Immediate Risk Mitigation Steps for Trade Compliance Officers:
- Audit your Form 5106 data in ACE so your addresses, officers, and tax ID match your current corporate filings.
- Sign fresh powers of attorney directly with your licensed customs broker, and retire any POA routed through an unvetted intermediary.
- Collect bills of materials and production records from your suppliers in Vietnam, Malaysia, and Thailand before goods leave origin.
- Pull every entry summary that paid IEEPA duties, separate them from Section 301 payments, and rank them by liquidation status.
- Calendar December 1, December 7, and February 2027 so you don’t lose your comment or refund rights.
References
- U.S. Customs and Border Protection, ACE Entry Summary Instructions and Form 5106 Guidelines
- Federal Register, Modernization of the Customs Brokers Regulations (19 CFR Part 111)
- U.S. Customs and Border Protection, Customs Brokers: Power of Attorney and Client Verification Guidance
- Office of the United States Trade Representative, Section 301 Investigations and China Tariff Actions
- Federal Register, Heightened Import Disclosures for Supply Chain Visibility (advance notice of proposed rulemaking, comments due December 1, 2026)
- Federal Register, Low-Value Shipments (proposed rule, 91 FR 64532, comments due December 7, 2026)
- FreightWaves, FreightWaves Today, October 21 (Regulatory & Compliance segment)
- U.S. Customs and Border Protection, Automated Commercial Environment (ACE) and CAPE Deployment Notices
- U.S. Customs and Border Protection, Uyghur Forced Labor Prevention Act Guidance for Importers
