The Billion-Dollar Message from Trade Enforcement
August 11, 2026
New Section 301 forced labor duties took effect July 24, 2026, covering 60 economies that account for more than 99% of U.S. imports. At 10% for economies with forced labor import prohibitions in place and 12.5% for all others, these duties are significant—and unlike the temporary Section 122 tariffs they replaced, they carry no formal expiration date.
They arrive alongside IEEPA tariff actions, existing Section 232 and Section 301 programs, and a CBP that is using increasingly sophisticated data validation tools to identify anomalies faster than ever before.
Importers are managing more tariff programs simultaneously than at any recent point in history. A compliance program is what keeps all of that organized, accurate, and ready.
A Customs Broker and a Compliance Program Are Not the Same Thing
Most middle-market importers have a customs broker. Fewer have a compliance program.
A customs broker files your entries accurately. A compliance program ensures those entries are defensible—before they’re filed, and long after they liquidate.
The importer of record bears legal responsibility for every customs declaration. That responsibility doesn’t transfer to the broker. It stays with you.
A strong compliance program covers:
Classification with documented rationale
Every product should have a supported HTS determination—not a code copied from a supplier invoice. When new duties take effect, classification accuracy determines which rate applies and whether an exemption is available.
Valuation methodology
Customs value must reflect actual transaction value, properly adjusted for assists, royalties, related-party pricing, and other factors. A compliance program documents that methodology and reviews it when supplier relationships or pricing structures change.
Country of origin documentation
With the new Section 301 forced labor duties applying rates based on the origin economy, origin documentation must be verifiable and up to date—not just on file. Supplier certifications, production records, and supply chain mapping need to support the declarations being made.
PGA compliance
For regulated products, compliance extends beyond CBP. FDA, USDA, EPA, CPSC, and other Partner Government Agencies each have documentation and filing requirements that must be met before cargo releases. Approximately half of the cargo Western Overseas handles is regulated by one or more PGAs—managing those requirements accurately is part of every shipment, not an occasional project.
Recordkeeping
CBP requires importers to maintain records for five years from the date of entry. Those records should be organized and accessible—not reconstructed under deadline pressure after a notice arrives.
Post-entry review
Compliance doesn’t end at clearance. Routine review of liquidated entries helps identify classification inconsistencies, valuation issues, or documentation gaps before CBP finds them. Issues identified and corrected proactively are always less costly than issues discovered through enforcement.
What the New Section 301 Duties Mean for Your Compliance Program
The July 24 duties deserve specific attention.
Covering 60 economies and more than 99% of U.S. imports with no formal expiration date, they are not a temporary condition to wait out. Products already subject to Section 232 tariffs are exempt to prevent duty stacking—but that exemption only applies if tariff applicability is correctly determined in the first place.
For compliance programs, that means:
- Classification must be accurate across multiple overlapping tariff programs simultaneously
- Origin documentation must be verifiable, not just present
- Entry review should confirm that the correct duty rates are being applied under the correct authority
- Any compliance program built for a simpler tariff environment may need to be updated
How Western Overseas Helps
At Western Overseas, risk containment is built into every shipment—from classification to clearance to post-entry follow-up.
Our compliance team, led by Erica Budzilek, LCB, CCS, Vice President of Regulatory Compliance, stays current with CBP guidance, tariff changes, and enforcement trends—and translates that into practical guidance clients can use. When regulatory communications are dense with technical language, our job is to explain what it means for your shipments in plain English.
For middle-market importers who don’t have a dedicated internal compliance officer, that relationship provides something meaningful: consistent processes, proactive communication, and a team that monitors the regulatory environment alongside you.
We don’t eliminate complexity. We control it.
The Right Time to Review Is Before CBP Asks
If you haven’t reviewed your compliance program recently—or aren’t sure one is fully in place—now is the time.
Contact Western Overseas to review your import compliance program. We’ll help you identify classification exposure, documentation gaps, and process improvements that reduce risk before enforcement activity surfaces them.
