Tariff Watch: CBP Update on CAPE Phase 3, Tariff Stacking Hits Canadian Metals, ET13 Set for Production
This week’s Tariff Watch covers CBP’s October 6 launch date for CAPE Phase 3, tariff stacking on certain Canadian metals, the Entry Type 13 rollout in ACE, and other trade developments affecting importers.
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Welcome to the latest edition of Tariff Watch, the weekly series from J.M. Rodgers that keeps busy importers, manufacturers, and supply chain leaders ahead of rapidly changing US trade policies.
The past week saw the trade dispute with Canada intensify as the US implemented stacked tariffs on metals. Meanwhile, CBP updated the Court of International Trade on the CAPE Phase 3 launch date as the agency pushed critical changes to international postal imports into the final rollout phase. Here’s what you need to know this week:
What’s New
- CAPE Phase 3 launch date revealed in court filing: This past Tuesday, September 15, US Customs and Border Protection (CBP) announced in a Court of International Trade (CIT) declaration that Phase 3 of the CAPE portal for IEEPA refunds on finally liquidated entries will officially launch on October 6. The declaration once again clarifies that Phase 3 is restricted to importers of record who are active plaintiffs in the CIT, as CBP maintains it lacks the legal authority to reliquidate closed entries without a direct court order.
- Section 338 duties now stack on top of Section 232: The White House reversed course on Tuesday and modified the scope of the 50% Section 338 tariffs on Canadian aluminum and steel products so that they now apply in addition to Section 232 duties. When the Section 338 tariffs went live on August 22, the administration’s policy was to exempt imports from Canada already covered under Section 232. The reversal now implements tariff stacking, creating combined duty rates of up to 75% on key metal imports.
- Entry Type 13 goes live this week: CBP will deploy Entry Type 13 (ET13) into the ACE production environment on Tuesday of this week, September 22. Following the Trump administration’s indefinite suspension of the de minimis exemption for imports valued at less than $800 earlier this year, CBP began testing the ET13 informal entry type for shipment-level data on international parcels in late June. As part of this week’s go-live, CBP is adding error code 334 and removing error code 325 for ET13 cargo release condition processing.
Who’s Impacted
In an already fast-moving Q3, the latest news brings even more changes to the US supply chain. Here’s who’s affected the most this week:
- Importers of Canadian steel and aluminum: Businesses importing Canadian structural steel and aluminum profiles must now pay stacked duties if they fall under both Section 232 and the expanded Section 338 lists. Importers previously paying a 25% tariff under Section 232 may now face a combined 75% duty at the border.
- Postal and e-commerce shippers: Businesses that receive international packages via USPS should now be ready for ET13’s move from testing into the ACE production environment. If the systems can’t properly handle the new 334 error code, importers risk having their entries placed in “unknown” or “pending” status.
- IEEPA litigating importers: The court filing announcing a go-live date for CAPE Phase 3 is good news, but only for some US businesses. Only importers of record who are plaintiffs with a case pending before the CIT, and who submitted their IOR number to CBP by July 30, will be eligible to participate in the October 6 launch.
What We’re Seeing
Although US trade is constantly in flux, supply chain leaders are working hard to protect their margins. Here’s what we’re seeing them do right now:
- Securing alternative sourcing: With the import ban on certain Canadian alcoholic beverages, dairy products, and motorcycles taking effect next week, many US importers are actively looking for new global suppliers. The prohibition on these Canadian goods begins Tuesday, September 29.
- Brokers updating ACE logic: Ahead of this week’s ET13 deployment, trade compliance software providers have been actively updating their error-handling workflows to retire code 325 and integrate the new 334 condition code.
- Leveraging the Canadian Surtax Remission Order: Following Canada’s September 8 implementation of retaliatory duties, US exporters are working with their Canadian customers to take advantage of the United States Surtax Remission Order. This 2025 Canada Border Services Agency (CBSA) customs directive was recently updated to allow Canadian importers to claim relief on certain US-origin goods used in healthcare, public safety, national security, manufacturing, and agricultural production.
What We’re Monitoring
We’re closely watching these ongoing stories for updates this week:
- CAPE Phase 3 litigation: We continue to monitor filings in the CIT, specifically looking for any hint of whether the federal government will be compelled to allow non-litigating importers to participate in CAPE Phase 3 for refunds on older liquidated entries.
- Updates on the Textile TRQs: We’re looking for any updates from the United States Trade Representative (USTR) on the previously announced tariff-rate quotas (TRQs) for textile and apparel imports. Earlier announcements from the USTR had indicated a possible September 1 rollout of the TRQs. Until an effective date is officially announced in a Federal Register notice, the applicable 10% Section 301 duties continue to apply to affected textile and apparel imports.
Sources
- IEEPA Refunds: CBP Clarifies CAPE Phase 3 Process, JD Supra
- US Escalates in Response to Canada’s Retaliatory Surtaxes, PWC
- ACE Updates for September, ST&R International Trade Law & Policy
- Customs Notice 25-19: United States Surtax Remission Order, CBSA