Jaguar Freight | IEEPA Refund Update

The Current Status of IEEPA Refunds

To quickly recap, the U.S. Supreme Court ruled that IEEPA tariffs were unlawful in late February. As a result, those tariffs stopped being collected, and the U.S. Court of International Trade has since ruled that importers are entitled to refunds.

Shortly after, U.S. Customs and Border Protection (CBP) indicated that its existing systems cannot process the refunds tied to the IEEPA tariffs but would begin building a new mechanism to handle them. The agency recently said the new process will be ready in a few weeks

Recommended Actions for Importers

Given the current uncertainty, importers should take proactive steps to protect their potential refund rights. We strongly recommend consulting with trade counsel as soon as possible to review entries and determine the best course of action. Depending on the situation, this may include preparing Post Summary Corrections (PSCs) or filing protests to preserve eligibility before the two year statutory deadline expires. This is especially important as U.S. Customs and Border Protection continues to develop its refund process through the newly announced CAPE system..

There is further nuance to be aware of regarding the distinction between liquidated and unliquidated entries. For liquidated entries, importers may need to file a protest or PSC to preserve refund rights, while unliquidated entries can often be adjusted automatically once CBP’s refund mechanism is in place.

A FINAL IMPORTANT NOTE: Acting promptly will help to ensure eligibility and the chance of missing the statutory deadline

Stay Connected

This situation continues to develop, and additional guidance from CBP and the courts is expected in the coming weeks. Jaguar Freight will continue monitoring developments and provide updates as more information is available.

Compliments of Jaguar Freight – a member of the EACCNY