Following a 6–3 decision in Learning Resources, Inc. v. Trump, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful, and that IEEPA’s authority to “regulate importation” does not extend to the imposition of duties. This decision opened the door for importers to recover duties paid over the past year.
More than $166 billion in tariff collections could be subject to refunds, affecting more than 330,000 U.S. importers. U.S. Customs and Border Protection is now developing a new electronic claims system, expected to launch this spring, to process refund requests through its Automated Commercial Environment platform.
The process of claiming refunds is still developing. The Supreme Court remanded the issue to the lower courts for further proceedings. Following this, the U.S. Court of International Trade ordered U.S. Customs and Border Protection (CBP) to begin recalculating affected entries and potentially issuing refunds. The order says that refunds may apply broadly to all importers that paid IEEPA tariffs, not limited to those that filed lawsuits. CBP is still working on a process that would meet the requirements of the U.S. Court of International Trade’s order.
According the U.S. Chamber of Commerce, U.S. importers of record who directly paid the tariffs or the person who takes ownership of the goods once they have cleared customs (the “consignee”) may be eligible for a refund. Refunds are only available for tariffs applied under the IEEPA.
More information, including on the refund process, can be found on the U.S. Chamber’s Tariffs FAQ. The One Louisville team will continue to update this post as the issue progresses.