U.S. Customs and Border Protection is developing a centralized system to refund duties collected under tariffs imposed through the International Emergency Economic Powers Act, which the Supreme Court struck down in February. The agency expects the refund mechanism to be operational later this spring.
The refund process is being built within CBP’s Automated Commercial Environment, the electronic trade processing system already used by importers and brokers. Rather than processing refunds on an entry-by-entry basis, the agency plans to consolidate refunds by importer to reduce administrative burden and speed processing, according to a member alert from the International Fresh Produce Association.
How the Refund System Will Work
The new system, referred to as the Consolidated Administration and Processing of Entries, will handle claim submissions, duty recalculation, review and liquidation, and electronic refund payments. Importers and brokers will be able to submit refund requests through a web-based portal, including bulk uploads of entry data. As of late March, CBP reported that most components have been built and are in testing.
Interest and Eligibility
Refunds will include interest at the current rate of 6 percent, accruing from the date estimated duties were deposited until the date of liquidation or reliquidation. On March 27, Judge Richard Eaton of the U.S. Court of International Trade ruled that previously liquidated entries must also be reliquidated without regard to IEEPA duties, removing earlier uncertainty about eligibility.
Steps Importers Should Take Now
IFPA is urging importers who paid IEEPA tariffs to take three preparatory steps: ensure company importer records are current with CBP, create an ACE Portal account to access entry data and identify eligible refunds, and enroll in ACH Refund to receive electronic payments. The association noted that a relatively small share of affected firms are currently enrolled in ACH.
IFPA is a trade association representing companies across the fresh produce supply chain. For more information about the liquidation process, see IFPA’s Tariff Refund Townhall on March 11.