The U.S. trade community is looking at a long, uncertain path obtaining refunds after the U.S. Supreme Court struck down President Donald Trump’s emergency tariffs.
The court ruling on Friday tossing out President Donald Trump’s tariffs levied under the International Emergency Economic Powers Act (IEEPA) means importers could potentially be due billions of dollars in duty refunds. But trade experts say there will be a lot of paperwork, and possible litigation, before that money lands back in their bank accounts.
“The process will be detailed and require a lot of effort on the part of importers and their trade advisors, but in the end, these monies should be refunded,” said Susan Kohn Ross, a partner at Mitchell Silberberg & Knupp.
The first step for importers, Ross said, is to run an ACE (Automated Commercial Environment) report that shows all of the IEEPA tariffs paid on goods from China, Canada and Mexico, and also any reciprocal tariffs paid, regardless of country of origin. “Regardless of how things proceed, a master list against which to note any refunds is necessary as a means to support all refunds being received.”
Second, to the extent the entries are not yet liquidated – and in concert with their trade advisors – post-summary corrections should be filed.
“The ACE system only accepts them from customs brokers,” said Ross. “However, importers are going to have to decide whether to ask their customs broker or their other trade advisors to prepare the legal argument(s) which is/are filed.”
There is no mandate referring the case back to the U.S. Court of International Trade, which stayed 2,000 lawsuits challenging the tariffs prior to the Supreme Court ruling, said law firm Wilmer Hale, in a note to clients.
“So, that raises the question of whether filing the usual protest after liquidation will be legally sufficient,” Ross said. Alternatively, importers may have to decide whether mirroring the existing lawsuits already on file is the appropriate remedy.”
At the same time, Ross reminded importers that they need to be sure they have arranged for any refunds which are due are received through the Automated Clearing House (ACH), which is something their brokers can arrange. Customs and Border Protection earlier this month mandated all refunds will be through ACH.
But wait, there’s more.
To no one’s surprise, Trump quickly announced the imposition of 10% tariffs under Section 122 of the U.S. Trade Act, then raised it to 15%. “By law this tariff is only effective for 150 days,” said Ross. The existing Section 232 and 301 tariffs remain in effect. Importers can likely also expect additional 232 and 301 cases to be initiated on whatever expedited basis the administration can find.
“The way forward is anything but crystal clear,” Ross said, noting that Treasury Secretary Scott Bessent stated that any questions about refunds will be left to the courts to decide.
Read more articles by Stuart Chirls here.
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