Following the Supreme Court’s ruling that invalidated IEEPA-based tariffs, all importers of record who paid these duties are entitled to refunds. U.S. Customs and Border Protection (CBP) is processing refunds, including for entries already liquidated, by recalculating duties without the IEEPA charges. Importers should monitor their Automated Commercial Environment (ACE) accounts for refunds, which include interest. CBP had collected approximately $166 billion in duties and deposits associated with these IEEPA tariffs and thousands of importers have brought claims seeking recovery of the amounts paid.
Key Details on IEEPA Tariff Refunds:
- Eligibility: All importers of record who paid IEEPA-authorized tariffs (e.g., Section 301 tariffs) are eligible for refunds, not just those who filed lawsuits.
- Process: CBP is directed to liquidate or reliquidate entries “without regard” to IEEPA tariffs. The process involves filing declarations in the Automated Commercial Environment (ACE) system.
- Scope: The refund covers over 53 million entries, including over 60% that were informal, indicating a broad application.
- Action Required: While some refunds may be automatic, experts advise importers to review their entry records, identify IEEPA-paid entries, and ensure protests are filed within 180 days of liquidation if not already covered. an automatic refund system is not yet fully in place, and the process may move forward with some complications.
- Downstream Customers: Companies that passed these tariff costs to customers may face litigation from those customers seeking to recover their share of the refund.
Important Considerations:
- Timing: While the Court of International Trade (CIT) has ordered refunds, the process may still take time to fully execute.
- Interest: Refunds will include interest, which must be accounted for in financial and tax filings.
- Documentation: Accurate documentation of the paid IEEPA duties is crucial for securing the full refund amount. Gather the relevant documentation, including Entry Summaries (CBP Form 7501), proof of payment, and the tariff classifications applied.
For the most up-to-date information, consulting with legal counsel specializing in international trade is recommended.
