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Tariff Update We have been tracking the International Emergency Economic Powers Act (IEEPA) tariff litigation closely, along with President Trump’s latest announcement that he plans to impose a universal 10% tariff under Section 122 of the Trade Act of 1974. Section 122 provides the President with limited “balance-of-payments” authority to impose temporary import restrictions. Under this authority, tariffs may be imposed up to 15% and may remain in effect for up to 150 days unless Congress enacts a law extending them. Commentators have widely noted that Section 122 has not previously been invoked to impose tariffs. In a press conference following today’s Supreme Court decision, the President said he would sign an executive order implementing the new tariffs by the end of the day.
In light of today’s Supreme Court decision limiting the use of IEEPA for tariffs, we expect IEEPA-based tariff collections to cease once U.S. Customs and Border Protection (CBP) implements the required operational changes. As with other tariff changes, CBP administers and collects duties through ACE (the Automated Commercial Environment). When tariff requirements change, CBP must update ACE and typically issues guidance through a CSMS message. For now, our understanding is that importers and brokers should continue to declare the required HTS classifications and pay IEEPA-related duties until CBP updates ACE and provides formal implementation guidance (including the effective date and any transitional instructions).
The refund process for IEEPA tariffs was not addressed in today Supreme Court decision. Thus, while we await further information on the possibility and methodology for obtaining refunds, we suggest that every importer compile all necessary data on each import entry and track liquidation dates to be prepared for the next steps to file for refunds, whether this be through post summary corrections, protests, or less likely, through filings in the CIT/Court of International Trade. We will be monitoring the situation closely, and will be here to assist with guidance and filings. Get prepared now and please reach out to WSSA (info@wssa.com) should you have any immediate questions. |
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WSSA 111 Commercial Street Portland, ME 04101 800.368.3167
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