Week of June 9–12, 2026 | Weekly Report | 3 Stories
THIS WEEK’S BRIEFING:
1. ⚠ IEEPA Duty Refund Crisis — DOJ Federal Circuit Appeal, CBP Commissioner Testimony, $85 Billion in Refunds at Risk
2. ⚠ Ocean Freight Peak Season Surge — Drewry WCI Up 23% in One Week; GRIs, PSS, and Hormuz Costs Converging
3. ⚠ EO: Strengthening Customs Enforcement — Every Importer and Broker Must Prepare Before September and December 2026 Deadlines
Story 1 — IEEPA Duty Refunds | CIT & Federal Circuit
IEEPA Refund Battle Escalates — DOJ Appeals to Federal Circuit, Commissioner Scott Testifies at CIT, $85 Billion Remains in Pipeline
The legal and administrative battle over $166 billion in International Emergency Economic Powers Act (IEEPA) duties struck down by the Supreme Court in February 2026 reached a new flashpoint this week. On June 2, 2026, the Department of Justice filed a formal appeal to the U.S. Court of Appeals for the Federal Circuit challenging both the CIT’s universal IEEPA duty refund order and a separate order requiring CBP Commissioner Rodney S. Scott to appear in person before Senior Judge Richard K. Eaton. On June 9, Commissioner Scott appeared and testified. A closed settlement conference was held June 11. CBP filed its CAPE (Consolidated Administration and Processing of Entries) progress report on June 10 as directed by the court.
The core dispute: CBP reversed its position on May 29, asserting it lacks legal authority to refund IEEPA duties for “finally liquidated” entries — those where liquidation became final 90 or more days ago — absent an individual importer court judgment. This position, if upheld, would exclude millions of importers from automatic refunds through the CAPE system. As of the June 10 progress report, CBP has accepted approximately 75,300 CAPE declarations covering nearly 16 million entries, with approximately 8.5 million already reliquidated without IEEPA duties. Approximately $85 billion in anticipated refunds remain in the processing pipeline. Nearly 4,000 importers have individually filed protective CIT actions. The DOJ’s Federal Circuit appeal of the universal reliquidation order remains pending.
Action Items:
• Confirm your ACE Portal ACH Refund Authorization is active — refunds cannot be paid without it. Enroll at cbp.gov/trade/programs-administration/trade-remedies/ieepa-duty-refunds.
• If you have finally liquidated IEEPA entries (90+ days post-liquidation), consult trade counsel immediately about filing a protective CIT action — the two-year statute of limitations is running.
• File all eligible CAPE Phase 1 declarations through the ACE Portal now — do not wait for Phase 2 developments or the Federal Circuit appeal outcome.
• Monitor the Federal Circuit for any stay ruling — a granted stay would pause CAPE payments and delay all pending refunds.
Sources: CIT Cases V.O.S. Selections v. United States (#25-00066); Euro-Notions Florida v. United States (#25-00595); DOJ Federal Circuit Appeal, June 2, 2026; CBP IEEPA Duty Refunds Page — cbp.gov; Baker McKenzie, June 8, 2026; Greenberg Traurig, June 5, 2026
Story 2 — Ocean Freight | Peak Season Surge
2026 Peak Season Arrives Early — Drewry WCI Up 23% in One Week as GRIs, PSS, and Hormuz Costs Converge
The container freight market entered a sharp acceleration in the first week of June 2026, with the Drewry World Container Index (WCI) climbing 23 percent to $3,433 per FEU as of June 4 — up from $2,800 per FEU just one week prior. The Shanghai Containerized Freight Index (SCFI) rose 16 percent to 2,571 points on May 29, followed by an additional 6 percent to 2,726 points on June 5. The transpacific Shanghai to Los Angeles route recorded a 31 percent week-on-week increase to $4,565 per FEU. Global schedule reliability sits between 42 and 48 percent — meaning fewer than half of booked sailings are arriving on schedule.
Three simultaneous pressure sources are driving the acceleration. First, the Strait of Hormuz has been functionally closed since late February 2026 — now approaching 100 days — driving elevated bunker fuel costs passed to shippers through Bunker Adjustment Factors across all trades. Second, carriers executed 10 to 15 percent blank sailing programs in May to support June 1 General Rate Increases (GRIs), tightening available space on U.S. West Coast and North China origin lanes. Third, Peak Season Surcharges (PSS) are now stacking on top of GRIs across all major carriers, ranging from $300 to $1,000 per FEU depending on trade lane. DHL Global Forwarding has advised customers to plan for elevated costs and disruption through at least Q3 2026. The NRF/Hackett Global Port Tracker projects U.S. inbound cargo at 2.25 million TEU in June 2026 — up 14.3 percent year-over-year — as retailers front-load ahead of anticipated August cost increases.
Action Items:
• Review all open purchase orders and shipment bookings for July and August — space and rate conditions will worsen through peak season.
• Audit all ocean freight surcharge schedules — PSS, GRI, BAF, and peak season surcharges are now stacking on every major trade lane.
• Add a minimum 14-day buffer to any delivery commitment for ocean freight arriving July through September.
• Evaluate long-term contract vs. spot rate exposure — spot rates moved 20–31% in two weeks.
• Update landed cost models — Q1 2026 benchmarks are now materially understated.
Sources: Drewry World Container Index, June 4, 2026 — drewry.co.uk; Shanghai Containerized Freight Index (SCFI), May 29 and June 5, 2026; NRF/Hackett Global Port Tracker, June 2026 — nrf.com; Seatrade Maritime News, June 5, 2026
Story 3 — Customs Enforcement | Executive Order
EO: Strengthening Customs Enforcement — Every Importer and Broker Must Prepare Before September and December 2026 Deadlines
On June 3, 2026, President Trump signed the Executive Order “Strengthening Customs Enforcement,” directing CBP and DHS to comprehensively overhaul the rules governing who can import goods into the United States and on what terms. CBP Commissioner Rodney Scott stated that importing into the U.S. “has for too long been treated as a right and not a privilege.” The Order does not impose new tariffs but restructures the compliance and eligibility framework for all importers of record — making it one of the most consequential customs enforcement actions in years.
Within 90 days (by September 1, 2026), DHS must revise penalty mitigation standards including a minimum penalty floor of no less than 50 percent of any assessed penalty with no mitigation for repeat offenders, require foreign exporters’ customs documentation to be submitted to CBP prior to export, and establish enhanced seizure and disposal authorities for noncompliant goods. Within 180 days (by December 1, 2026), all Importers of Record must maintain minimum tangible domestic assets and bonding, provide CBP with beneficial ownership and business affiliation disclosures, meet a new “good standing” requirement, and — for foreign IORs — be CTPAT-validated or use a CTPAT-validated licensed U.S. customs broker. Foreign IORs will be prohibited from filing informal entries under 19 U.S.C. 1498. For customs brokers, the Order directs maximum penalties against brokers who fail to conduct due diligence or repeatedly represent noncompliant clients.
Action Items:
• Review your continuous bond sufficiency now — CBP bond increases are coming within 180 days.
• Audit your IOR registry: confirm beneficial ownership disclosures and domestic asset documentation are current and accurate.
• If you work with any foreign-based IORs, assess their CTPAT eligibility and exposure to the informal entry prohibition now.
• Brokers: review your client portfolio for noncompliant importers — the Order directs maximum penalties for brokers who repeatedly represent problem clients.
• Begin compiling supply chain production documentation in anticipation of heightened disclosure requirements.
Sources: White House Executive Order “Strengthening Customs Enforcement,” June 3, 2026 — whitehouse.gov; CBP Press Release, June 3, 2026 — cbp.gov; 19 U.S.C. 66, 1484, 1498, 1623, 1624, and 4320
DISCLAIMER: This report is produced for informational purposes only and does not constitute legal, regulatory, or customs compliance advice. All information is sourced from publicly available government and reputable industry sources as cited. Trade regulations and tariff rates are subject to change without notice. Readers should consult a licensed customs broker or trade attorney regarding specific transactions and compliance obligations. Cargotron Inc. assumes no liability for actions taken based on this publication.
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