U.S. Customs and Border Protection (CBP) launched the third phase of the tariff refund process, which allows for companies that sued over tariffs and won to get their money back. This update specifically covers firms involved in legal disputes at the U.S. Court of International Trade (CIT) where judges have directed CBP to reverse prior assessments and refund the associated fees.
In customs, “liquidation” refers to entries that have been finalized and settled. Companies pay an estimated tariff when they import goods in the United States, and the bill is not settled until about 10 months later, at which point the entry is liquidated. The Jewelers Vigilance Committee (JVC) explained that Phase III refunds do not apply to any other liquidated entries due to ongoing litigation between CIT and the federal government.
Eligibility for Phase III Refunds
To be eligible for a Phase III refund, companies must also have provided CBP with a valid importer of record (IOR) number by July 30 of this year. The JVC advises that CBP will later release further guidance for eligible firms that missed the July 30 deadline. Those already engaged in IEEPA refund lawsuits should direct inquiries about Phase III claims to their CIT case attorney.
Importers that haven’t filed a case with the CIT should consult “experienced customs counsel” to determine if there are any remaining options for recovering their funds, JVC said. It also noted that the court case over liquidated entries continues, and CIT could order CBP to refund those entries in the future. The refund program, launched in April, covers only tariffs imposed under the International Economic Emergency Powers Act (IEEPA), which the Supreme Court invalidated in February.
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Previous Phases and Refund Process
Phase I covered IEEPA tariffs on entries either not yet finalized or settled within the last 80 days. Phase II addressed tariffs on entries settled over 80 days ago, plus those still under review due to importer protests against proposed duties. Like earlier phases, Phase III applicants must maintain an ACE Secure Data Portal account and enable electronic ACH payments, as paper checks are no longer accepted for refunds.
Companies can apply for an account online, and those who have trouble applying can contact ACE support via email at [email protected] or call 866-530-4172. The support line is open 24 hours a day, except from 10 p.m. ET on Saturday to 5 a.m. ET on Sunday. CBP also provides an email address for companies that find themselves locked out of their account after 45 days of inactivity, which is [email protected].
Money spent on tariffs enacted under different laws, including the “forced labor” tariffs that went into effect in July and range from 10 to 12.5 percent, is not refundable. The U.S. Customs and Border Protection website provides more information on the tariff refund process and the requirements for eligibility.
