Importers should stay alert to navigate remaining uncertainties as U.S. Customs and Border Protection crafts a refund process for Trump administration tariffs struck down by the Supreme Court, experts told Supply Chain Dive.
CBP notified the Court of International Trade on Friday of its plans to develop a process to streamline refunds, with implementation targeted within 45 days. However, several unknowns could complicate these efforts, prompting industry experts to flag potential risks.
Global 3PL C.H. Robinson listed several risks on LinkedIn, including the lack of details on the procedure for filing entries into the Customs' electronic system, called the Automated Commercial Environment. Other potential problems included insufficient guidance on the required data and whether entries would follow the normal liquidation timelines or face additional review, which could delay payments.
"Timelines are the biggest question right now," Jonathan Todd, vice chair of transportation and logistics at Benesch Friedlander Coplan & Aronoff, said, adding, "We need to see if there's any further guidance from CBP on filing deadline."
Beyond procedural questions, potential legal disputes could emerge over refunds tied to entries that were liquidated and became final after the 180-day protest period, Matthew Calguir, a partner at BakerHostetler, said. Case law suggests Customs cannot reliquidate entries once they've become final.
"So I can see customs taking the position that they can't do it," Calguir said. "That may perhaps beg the question of whether the court can order it."
Despite those uncertainties, the CBP court filing marks progress for importers because it shows a refund process is being developed, Todd said, though some importers remain skeptical.
"I know some importers that are still very seriously looking at the possibility of filing lawsuits," Todd said. "On the other hand, the position of the CIT and, at least based upon the filing [Friday], the position of CBP, is that filing a lawsuit may not be required, but it's still an open question."
Risks aside, every importer should register to receive refunds through Customs' electronic payment system, since that is the only mechanism CBP plans to use for refunds, Todd said. The agency confirmed as much in Friday’s filing, noting many shippers have not yet registered despite paper-based returns no longer being available.
"This is something that must be done if the importer hopes to receive a refund through the administrative process, so that can be done and should be done today," Todd said.
