Wednesday, June 24, 2026 | 2 Stories
TODAY’S BRIEFING:
1. ⚠ CBP Detains Jordan Garment Shipments Tied to Columbia, Under Armour — What This Means for Your Supply Chain
2. ⚠ CAPE Phase 2 Launches June 29 — If You Have Reconciliation-Flagged Entries, the Time to Act Is Now
Story 1 — CBP / Forced Labor Enforcement
CBP Detains Jordan Garment Shipments Tied to Columbia, Under Armour — What This Means for Your Supply Chain
On June 23, CBP issued two Withhold Release Orders against garments produced in Jordan by Needle Craft Ltd. and Casual Wear Apparel LLC. Effective immediately, all U.S. ports are detaining shipments from these factories. Public supplier lists show both produce for major American brands, including Columbia and Under Armour.
These are CBP’s fifth and sixth forced labor enforcement actions of Fiscal Year 2026, issued under Section 307 of the Tariff Act of 1930. CBP cited evidence of abusive working conditions, excessive overtime, intimidation, physical and sexual violence, and withheld wages.
What Every Importer Needs to Understand:
- A Withhold Release Order means immediate detention at every U.S. port of entry — no advance warning, no grace period.
- These factories are owned by Needle Craft Clothing Industry, which also owns Fine Apparels — a facility tied to a 2024 worker death and documented abuse allegations, yet not currently subject to a WRO despite a 2025 third-party social audit.
- That detail matters: a current social compliance audit certification does not guarantee a supplier is free of CBP forced labor risk.
- Importers bear the burden of proof to demonstrate goods were not produced with forced labor before a detained shipment can be released.
- This action adds to a growing pattern of enforcement activity in 2026 across multiple industries and countries, not an isolated event.
Actionable Recommendations:
- If you source apparel, footwear, or textiles from Jordan, check immediately for any ownership or factory-group ties to Needle Craft Clothing Industry.
- Do not rely solely on third-party social audits to clear forced labor risk — conduct independent verification of factory conditions where possible.
- If you have shipments currently in transit from either named factory, contact your customs broker now to discuss options before they reach port.
- Build a habit of checking CBP’s Forced Labor Enforcement Dashboard regularly, not just when a headline catches your attention.
- Talk to your broker about building a documented supply chain risk review process — the cost of prevention is far lower than the cost of a detained shipment.
Executive Insight:
This case is a reminder that forced labor risk in your supply chain is not always visible through standard compliance paperwork. The factory with the audit certification was not the one CBP flagged — the unaudited, more remote connection was. Real protection comes from knowing your suppliers’ full ownership structure, not just their paperwork.
Source: CBP National Media Release and CSMS #69031301 (June 23, 2026); CBP Forced Labor Enforcement Dashboard — cbp.gov.
Story 2 — IEEPA Tariff Refunds / CAPE
CAPE Phase 2 Launches June 29 — If You Have Reconciliation-Flagged Entries, the Time to Act Is Now
CBP issued updated guidance on June 23 confirming Phase 2 of the CAPE IEEPA refund system remains on track for June 29, 2026. This phase covers entries flagged for reconciliation — and there is a real deadline hiding inside the announcement that importers need to know about today, not next week.
What Every Importer Needs to Understand:
- Phase 2 covers reconciliation-type entries (Entry Types 01, 02, and 06) where no Type 09 reconciliation summary has been filed yet.
- CBP has stated it needs each affected importer’s IOR number approximately two weeks before the June 29 launch to keep entries on schedule. Counting back, that window has already opened.
- If you have not yet provided your IOR number for Phase 2 processing, this is the action item — not a future to-do.
- Do not file your Type 09 reconciliation summary early. CBP’s guidance is clear: hold that filing unless your deadline is within 30 days of expiring, so your CAPE declaration can be processed first. Filing early removes the entry from Phase 2 eligibility entirely.
- Refunds continue to be issued electronically only — confirm your ACE Portal ACH banking details are current before Phase 2 launches.
Actionable Recommendations:
- If you have reconciliation-flagged entries from the IEEPA tariff period, contact your customs broker today to confirm your IOR number has been submitted for Phase 2 processing.
- Do NOT file your Entry Type 09 reconciliation summary early unless your filing deadline is within 30 days of expiring.
- Verify your ACE Portal account and ACH enrollment are current and ready to receive electronic refunds.
- Ask your broker to review CBP’s latest CSMS guidance with you directly if you manage any of your own CAPE filings.
- Mark June 29 as the Phase 2 launch date, but treat today as the actual deadline for the paperwork that makes that launch work for you.
Executive Insight:
The headline date is June 29, but the real deadline already passed quietly two weeks before it. This is a pattern worth remembering across every CBP program: the published launch date is rarely the date that matters most for your own preparation. Importers who treat every compliance deadline as the actual action point, rather than waiting for the public-facing date, consistently avoid the costly scramble that catches everyone else off guard.
Source: CSMS #69035485, CBP (June 23, 2026); CBP IEEPA Duty Refunds FAQ page — cbp.gov.
This post 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.