YLK Trade Insight | Vol. 1, No. 15 (April 15, 2026)
This week, importers and trade professionals are focusing heavily on CAPE’s "Automated Refund" system. In anticipation of the IEEPA tariff refund (Phase 1) launch next week, we outline the critical preparatory steps required this week while also examining the ongoing enforcement of Section 232 metals duties.
Weekly Trade Highlights
1) Section 232 Metals: Full-Customs-Value Framework Now in Effect
Source: White House Proclamation (Apr. 2, 2026); CBP CSMS #68253075 (Apr. 3, 2026)
As of 12:01 a.m. ET on April 6, 2026, the revised Section 232 metals framework is in effect. Under the April 2 proclamation, covered aluminum, steel, and copper articles and derivative products are now assessed on the full customs value of the imported product, rather than only on declared metal content. CBP’s guidance also confirms that for certain listed goods outside chapters 72, 73, 74, and 76, no Section 232 duty applies if the article contains less than 15% of the applicable metal(s) by weight.
🎯 YLK Insight:
When utilizing the 15% exclusion (HTSUS 9903.82.03), filers must report the aggregate weight of the applicable metal(s) in kilograms as a second quantity. Accuracy here is crucial to preventing valuation red flags.
2) Pharma Tariffs: Generics and Biosimilars Remain Exempt
Source: Presidential Proclamation 11020, 91 FR 18183 (published Apr. 9, 2026)
The new Section 232 proclamation imposes a 100% tariff on covered patented pharmaceuticals and ingredients (Annex I). Crucially, the proclamation expressly states that generic pharmaceuticals and biosimilars are not subject to these tariffs at this time. For products of South Korea, Japan, and the EU, a 15% rate applies unless a lower rate is established. Implementation begins July 31, 2026, for Annex III companies and September 29, 2026, for all others.
🎯 YLK Practical Action Item: Pivot from Origin to Agreement-Based Compliance
With a 100% default rate looming for patented products, the U.S. government has shifted the burden of relief to company-specific agreements. Evaluate your eligibility to enter into a Most Favored Nation (MFN) pricing agreement or an Onshoring Plan—these contractual commitments are now the primary mechanism for reducing the 100% duty.
3) CAPE Portal: Phase 1 Launch Confirmed for April 20
Source: CBP CSMS #68315804 (Apr. 10, 2026)
CBP announced in CSMS #68315804 on April 10, 2026 that Phase 1 of CAPE will launch on April 20, 2026. This initial phase is limited to certain unliquidated entries and entries within 80 days of liquidation. CBP has largely shifted customs-related refunds to an electronic ACH process; refund checks are now generally available only if a waiver is approved. Importers should be aware that voluntarily using CAPE means IEEPA cash deposits may be used to offset other outstanding CBP duty obligations.
CBP is mandated to file a Phase 1 progress report by April 28, with a follow-up status conference scheduled for the same day.
🎯 YLK Strategic Insight:
If your company has liquidated damages or unpaid duties, your IEEPA refund may be "absorbed" by the government via the CAPE automated offset. Consult with counsel to determine if the portal or a formal protest is the safer recovery route.
4) Auto Parts Inclusions: Watch Docket ITA-2025-0040
Source: Federal Register Notice, 91 FR 13998 (Mar. 24, 2026)
The April 2026 submission window for new Section 232 automobile-parts inclusion requests closed at 11:59 p.m. ET on April 14, 2026. Accepted requests are expected to be posted shortly for a two-week public comment period on Regulations.gov under Docket ID ITA-2025-0040.
Affected companies should monitor the docket closely and prepare comments promptly once the accepted requests are posted.
💡 Practical Compliance Tip: ACE Portal Granting and Audit Readiness
Do not wait until Monday to audit your ACE Portal. Granting access now allows your trade professional to run critical data audits for IEEPA refunds.
Ensure your refund strategy is finalized and fully coordinated with your trade professionals before the CAPE system goes live.
Log in to the modernized ACE Portal, select "Accounts," and "Add User." Assign the "Reports" role to allow your consultant or attorney to execute data audits for IEEPA refunds.
If you need assistance with IEEPA entry validation, setting up ACH authorization, or determining your best recovery strategy, please reach out to our team.
Disclaimer: This newsletter is for informational purposes only and does not constitute legal advice or create an attorney-client relationship.
