Navigating Changing Trade Regulations: What Importers Need to Know Now

As the global trade environment continues to shift, staying informed and compliant is more important than ever. At Future Forwarding, we are closely monitoring evolving U.S. Customs and Border Protection (CBP) regulations, new tariff implications, and enforcement trends to help our customers navigate the complexities of international shipping, and maintain compliance. Below are several key updates and best practices to help your business stay prepared and protected.

1. Upcoming Tariffs on Annex II Goods

While some goods were previously excluded from reciprocal tariffs under IEEPA (International Emergency Economic Powers Act)—including pharmaceuticals, lumber, and semiconductors—these items are under renewed scrutiny. New tariffs are being discussed, although no formal announcements have been made.

What this means for you:
Stay alert but don’t panic. These changes are developing quickly. We will provide clear, actionable guidance as soon as official information is released.

2. Customs Bond Sufficiency & Tariff Impacts

CBP has started issuing bond insufficiency notices as they account for increased duties under new tariff regimes. Importers may be advised to increase their bond amounts to avoid costly issues like bond saturation or stacking.

Our recommendation:
Proactively review your import projections over the next 12 months. Overestimating bond coverage may result in a higher premium but can help you avoid significant disruptions. Our team is here to assist with these evaluations.

3. Trade Agreement Claims & Documentation

As tariffs increase, programs like USMCA are expected to be claimed more frequently—especially for goods with normally duty-free classifications. However, claiming these benefits without adequate documentation can raise red flags with CBP.

What you should do:
Even if not required at the time of entry, obtain and retain certificates of origin and supporting documents. CBP may request proof of claims at any time, including for items subject to the new IEEPA-related tariffs or aluminum and steel derivatives.

4. Compliance Is Critical: AI & CBP Enforcement

CBP is leveraging artificial intelligence to identify patterns of non-compliance and possible tariff evasion. Brokers are expected to exercise “reasonable care” in supervising imports and ensuring accuracy in all documentation and declarations.

Your action items:
Ensure your records are thorough and accurate. Be ready to substantiate any certifications or claims. We’re committed to advising you responsibly and in writing when concerns arise.

5. Understanding “First Sale” Eligibility

There’s growing interest in using the “first sale” rule to reduce declared values and save on duties. However, this method requires strict qualification to be used appropriately.

Our advice:
If you’re exploring ways to optimize import costs, speak with a qualified trade advisor or attorney. We can connect you with trusted professionals to assess your transaction values and pricing strategies, such as isolating non-dutiable charges like certain commissions or engineering costs.

6. Importer Vetting & Risk Mitigation

CBP is increasingly focused on new Importers of Record (IORs), especially due to a rise in short-lived shell companies used to evade duties. This has led to tighter scrutiny in setting up new accounts.

How Future Forwarding protects you:
We vet all new importers thoroughly and recommend verifying business addresses and operational legitimacy before engagement.

7. The Role of Official Communication

We want to emphasize that social media posts are not law. No matter how widely circulated, guidance only becomes official through Executive Orders and, more importantly, CBP’s Cargo Systems Messaging Service (CSMS).

What this means for you:
Rely on Future Forwarding and CBP’s CSMS alerts—not online chatter—for accurate, enforceable guidance. We will always inform you of updates as soon as they are confirmed by official channels.

Partnering With You Through Change

We understand this is a challenging time for importers, and you may have questions as policies shift. Our team is dedicated to working closely with you, asking the right questions, and providing thoughtful recommendations to ensure continued compliance and peace of mind.

For more personalized support or if you’d like to discuss how these updates may affect your operations, please don’t hesitate to reach out. We’re here to help.

New Import/Export Regulations in the UK

Understanding Incoterms (International Commercial Terms) and customs representation is paramount in international commerce, where goods traverse borders and regulations. However, new policy has introduced additional layers of complexity, particularly for UK importers and exporters. 

 

EXW Exports and DDP Imports: A Detailed Overview

 

EXW (Ex Works) and DDP (Delivered Duty Paid) are pivotal Incoterms, each delineating distinct responsibilities and risks for buyers and sellers. Under EXW, the seller’s obligations conclude once the goods are available at their premises, leaving the buyer responsible for export formalities and transport. Conversely, DDP entails the seller’s responsibility for delivering goods to the buyer’s designated destination, including customs clearance and duty payment.

 

Customs Representation in the UK: Direct vs. Indirect

 

Comprehending customs representation in the UK is crucial. There are two types: Direct and Indirect. Direct representation involves a customs broker acting on behalf of a UK-established company, while Indirect representation sees the broker representing a non-UK entity. The distinction is vital, as it influences liability for customs debts.

 

Liability Considerations and Representation Types

 

The shift in representation types post-Brexit carries significant liability implications. In Direct representation, the principal (importer or exporter) bears sole liability for customs debt. Conversely, the agent and principal are jointly and severally liable in indirect representation. Understanding these nuances is essential to mitigate risks effectively.

 

Customs System Changes: The Introduction of CDS

 

One of the most important changes in the UK’s customs landscape is the implementation of the Customs Declaration Service (CDS). This system, operational for exports since mid-March, introduces several novel data elements, facilitating comprehensive declarations. It accommodates complexities such as different entities serving as exporters, importers, buyers, sellers, declarants, and representatives.

 

Educating Stakeholders: Responsibilities and Awareness

 

Amidst evolving trade dynamics, educating stakeholders assumes paramount importance. It’s crucial for businesses to comprehend their responsibilities under various Incoterms. For instance, in EXW exports, the seller’s responsibility ends when goods are made available, while in DDP imports, the seller bears the onus of delivering goods to the buyer’s location, including customs clearance.

 

Navigating international trade necessitates a nuanced understanding of Incoterms, customs representation, and regulatory changes. For UK traders, meticulous consideration of these factors is imperative to mitigate risks, ensure compliance, and facilitate seamless trade operations. By staying informed and fostering stakeholder education, businesses can adapt to the new realities of global commerce and thrive in an ever-evolving landscape.


Want to know more? Reach out to Future Forwarding today

Secretary Mayorkas’ Strategy to Protect American Textile Industry from Illicit Trade Practices

The Secretary of Homeland Security Alejandro N. Mayorkas met virtually with members of the National Council of Textile Organizations (NCTO), comprising both large and small companies pivotal in providing employment opportunities for thousands of American workers. The discussion centered on addressing the significant challenges faced by the textile industry due to illicit practices undermining fair trade agreements and exploiting labor laws.

NCTO representatives highlighted the detrimental impact of unscrupulous actors circumventing free trade agreements, violating the Uyghur Forced Labor Prevention Act (UFLPA), and exploiting legal loopholes such as the de minimis shipment exception. In response, Secretary Mayorkas reaffirmed the Department of Homeland Security’s commitment to combating customs violations and protecting American industries.

To address these concerns, Secretary Mayorkas announced the mobilization of U.S. Customs and Border Protection (CBP), Homeland Security Investigations (HSI), and other DHS agencies to intensify efforts in prosecuting illegal customs practices harming the American textile sector. CBP has already initiated enhanced enforcement measures, employing techniques like physical inspections, laboratory testing, production verification visits, and audits. Moreover, CBP is bolstering its capabilities for isotopic testing to identify goods potentially linked to forced labor violations.

HSI’s focus on labor exploitation investigations aims to curb criminal activities and protect lawful employment opportunities for American workers. Additionally, as the chair of the Forced Labor Enforcement Task Force, DHS collaborates with various stakeholders to expand the UFLPA Entity List, publicly identifying and holding accountable entities engaged in or facilitating forced labor.

Secretary Mayorkas mandated the agencies to deliver a comprehensive enforcement action plan within 30 days, evaluating the sufficiency of current trade laws in addressing core issues.

In his statement, Secretary Mayorkas underscored DHS’s commitment to utilizing all available tools, including detecting suspicious transshipment practices, publicizing bad actors, isotopic testing, random parcel inspections, and other law enforcement endeavors, to safeguard the integrity of markets and uphold the American textile industry.

As Secretary Mayorkas reinforces the importance of protecting American industries, including the textile sector, against illicit practices, it’s crucial to partner with a freight forwarder who understands the nuances of compliance and regulation. Future Forwarding not only prioritizes adherence to laws and regulations but is dedicated to your success. Reach out to us today.

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