January Newsletter | Trade Alert: OBBBA, SCOTUS, Enforcement Surge
TOP NEWS: OBBBA Legislation
The proposed One Big Beautiful Bill Act (OBBBA), which has passed the House, seeks to narrow the scope of drawback eligibility for the tobacco industry, specifically addressing the "double drawback" issue where companies allegedly receive refunds on excise taxes they never paid on exports. As of early 2026, the bill's final status in the Senate is a major point of discussion in the trade community.
[Read our analysis of the Supreme Court case →]
STILL PENDING: Supreme Court Decision
Importers are challenging the legality of the reciprocal tariffs and we are all still awaiting the determination by the Supreme Court of the United States. A decision is expected sometime in 2026, the hope is sooner rather than later.
DID YOU KNOW: Section 232 & Drawback Opportunities
The scheduled 2026 tariff increases (from 25% to 30% or 50%) on upholstered wood products, kitchen cabinets, and vanities under Section 232 were postponed until January 1, 2027, through a December 31, 2025 proclamation. The current 25% rate remains in effect for these items.
Existing reciprocal tariffs and most Section 232 duties continue to be eligible for duty drawback, offering significant opportunities for businesses to recover costs, especially in the context of high import fees.
MORE TARIFF NEWS: 2026 Enforcement Surge
2026 is being characterized as "the year of enforcement for customs and tariff-related matters," following the U.S. Department of Justice's (DOJ) formation of a trade fraud task force and increased funding for Customs and Border Protection (CBP). Companies are advised to ensure robust, risk-based compliance programs are in place to navigate a complex international trade environment.
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