IFPA urges members to sign up to CBP platform to get IEEPA tariff refunds

In an alert sent to members on Monday, April 7, the International Fresh Produce Association urged members to sign up for US Customs and Border Protection (CBP)’s Automated Clearinghouse (ACH) to ensure tariff refund eligibility. 

The organization explains that ACH enrollment is required for electronic duty refunds, which are expected to begin later this Spring.

Only a relatively small share of affected firms are currently enrolled, according to the CBP. 

Tariff refunds will be processed through ACH

Rather than issuing refunds on an entry-by-entry basis, CBP plans to consolidate refunds by importer, significantly reducing administrative burden and speeding up processing. 

Refunds will be managed through CBP’s Automated Commercial Environment (ACE), a platform already known to importers and brokers. The new ACH functionality is built into the system to streamline claims, recalculate duties, liquidate or reliquidate where necessary, and ensure payments are deposited directly into a company’s bank account. 

Refunds will include interest, as required by statute, IFPA clarified. The organization explained that interest accrues from the date estimated duties were deposited until the date of liquidation or reliquidation. 

The current interest rate is six percent, but the court has noted that interest continues to accrue daily.

Action items to claim tariff refunds 

IFPA is urging all importers who paid International Emergency Economic Powers Act (IEEPA) tariffs to focus on three action items to ensure eligibility for a refund.  

1. Update import record information with the CBP.
2. Create an ACE Portal account if your business does not have one. This will enable companies to run reports and download entry data to show IEEPA tariff payments for which they may seek refunds.
3. Sign up in ACE Refund. Once enrolled, refunds will be deposited automatically into stakeholders’ bank accounts. 

“Members may wish to check enrollment status and coordinate with their customs broker or trade counsel to ensure readiness once the refund portal goes live,” IFPA’s alert reads. 

Are you entitled to IEEPA tariff refunds?

Following the Supreme Court’s February 20 decision invalidating tariffs imposed under the IEEPA, CBP, under the supervision of the CIT, continues to set up a centralized tariff refund process. 

According to IFPA, the majority of entries subject to IEEPA tariffs remain unliquidated and should be relatively easy to refund administratively per CBP.

Importantly, on March 27, US Court of International Trade (CIT) Judge Richard Eaton said “[a]ny liquidated entries for which liquidation is final shall be reliquidated without regard to the IEEPA duties”, removing prior uncertainty about the eligibility of previously liquidated entries. 

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