Tariff refund process taking shape

The US Customs and Border Protection (CBP) agency is working on a process to refund International Emergency Economic Powers Act (IEEPA) tariffs paid over the past year by importers.

IMAGE: CHATGPT

The CBP submitted declarations to the US Court of International Trade that the agency is developing an automated process for processing refunds of IEEPA tariffs paid by importers. Since the U.S. Supreme Court determined that many of the tariffs paid were unconstitutional, businesses of all sizes are questioning how to get their refunds, according to news reports.

In general, CBP’s proposal is to have importers file a list of entries on which they paid IEEPA tariffs via the Federal Automated Clearing House (ACE). The ACE will then validate the importer’s declaration and provide importers with a lump sum payment of all paid IEEPA tariffs electronically. This process would apply to both liquidated and unliquidated entries. CBP stated that it hopes to have this process fully operational in 45 days, according to news reports.

Information on how to enroll is available on CBP’s website. CBP has also published FAQ with more information about the ACH electronic refund process. CBP stated “until importers complete the process to receive refunds electronically, the refunds will be rejected,” according to the website.

The Specialized Carriers and Rigging Association (SC&RA) and other construction equipment associations are monitoring the tariffs refund process and will communicate more specific information to its membership when it becomes available.

There is also speculation that the Trump Administration will try other avenues to keep the tariffs in place.