Tariff Watch: CAPE Phase 3 Launches This Week, FY27 Quotas Open, Import Bans Now in Place

Welcome back to Tariff Watch, the ongoing series from J.M. Rodgers that provides busy supply chain leaders with weekly updates on US trade policy.

As October and Q4 begin, US importers and manufacturers are operating in a North American supply chain that looks markedly different than at the start of Q3, with bans on several Canadian-origin goods now in place. Importers who are active plaintiffs in the Court of International Trade (CIT) can start claiming refunds on IEEPA tariffs for finally liquidated entries this week, but it remains to be seen whether non-litigants will ever gain this privilege in the CAPE portal.

Here’s the news you need to know this week:

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What’s New

• CAPE Phase 3 launches October 6: CBP is scheduled to deploy Phase 3 of the Consolidated Administration and Processing of Entries (CAPE) system on Tuesday, October 6. Phase 3 expands the IEEPA tariff refund process to entries that have been liquidated for more than 80 days and are subject to court-ordered reliquidation. Participation is currently limited to importers of record that are plaintiffs in pending IEEPA refund cases before the U.S. Court of International Trade (CIT). Plaintiffs that submitted valid importer of record numbers to CBP by July 30 are expected to be able to begin participating in Phase 3 on October 6, while CBP has indicated that additional instructions will be provided for later submissions. Eligibility for non-litigating importers remains subject to ongoing litigation.
• FY27 quota periods are now underway: A number of fiscal year 2027 quota periods opened October 1, including programs covering raw cane sugar, refined and specialty sugar, sugar-containing products, cocoa powder, mixes and doughs, and certain apparel goods. Quota administration varies by product. Some quantities are allocated by country, while others include first-come, first-served components. CBP also uses opening procedures that may result in proration when accepted entries exceed the available quota quantity.
• Canadian import bans are now in effect: Effective September 29, certain Canadian-origin products covered by Presidential Proclamations 11061, 11062, and 11063 are excluded from importation into the United States. The restrictions apply to specified products involving alcoholic beverages, dairy, and motor vehicles and follow the 50% Section 338 duties imposed on targeted Canadian goods in August. CBP has stated that entries containing covered products imported on or after the effective date will be rejected. Products imported before September 29 may remain eligible for entry under the applicable 50% additional duty, subject to the terms of the proclamations.

Who’s Impacted

Several groups are most directly affected by this week’s developments:

• IEEPA refund litigants: Importers with pending CIT cases and entries covered by court-ordered reliquidation may become eligible to use CAPE Phase 3 beginning October 6. Importers without pending IEEPA refund litigation remain outside the current scope of Phase 3.
• Importers using tariff-rate quotas: Businesses importing products covered by FY27 quota programs are entering a new quota period. Available quantities, country allocations, filing procedures, and applicable duty treatment vary by commodity and program. For example, CBP stated that the FY27 refined sugar quota was expected to oversubscribe at its opening, while several other quota bulletins provide for proration if accepted opening submissions exceed available quantities.
• U.S.-Canada supply chains: Importers of Canadian products covered by the September proclamations are now operating under import prohibitions rather than the 50% Section 338 duty treatment that previously applied to those covered goods. CBP’s guidance also distinguishes between products imported before and after the September 29 effective date.

What We’re Monitoring

We’re continuing to follow several developments that could affect importers in the weeks ahead:

• CAPE Phase 3 implementation: October 6 will mark the planned deployment of Phase 3 for qualifying entries covered by CIT reliquidation orders. Additional CBP instructions, technical guidance, and any changes affecting the scope of eligible entries will be important developments to follow.
• CAPE eligibility for non-litigants: Whether importers without pending CIT cases will ultimately gain access to CAPE for entries beyond CBP’s ordinary reliquidation window remains unresolved. The federal government has challenged court-ordered relief for non-litigating importers, leaving the eventual scope of Phase 3 subject to further litigation.
• October 22 international mail changes: CBP implemented its new Entry Type 13 test in ACE on September 22 for qualifying international mail shipments. Beginning October 22, the Consumer Product Safety Commission will require electronic certificate filing for applicable mail shipments subject to CPSC certification requirements. CBP has also identified categories of mail shipments that will no longer qualify for the new manual informal-entry process as of that date, including certain shipments subject to Chapter 98, Chapter 99, free-trade agreement, or Partner Government Agency requirements.
• Secondary tariff actions under the new Russia sanctions law: The Lindsey O. Graham Sanctioning Russia and Iran Act of 2026 was signed into law on September 18. Among its provisions, the law authorizes duties of up to 100% on goods from countries meeting specified criteria involving purchases of Russian-origin crude oil or natural gas or facilitation of sanctions evasion. The statute directs the President to act within 30 days of enactment for countries covered by the provision, making implementation an important trade-policy development to watch.

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Sources

• CBP Confirms October 6 Launch of Phase 3, SmarTrade
• USTR Announces Fiscal Year 2027 TRQ Allocations, USTR.gov
• Ban on $1 Billion Worth of Canadian Imports Goes Into Effect, AP