Tuesday, 02 January 2024 12:17 GMT

U.S. Says 15 Percent of Tariff Refund Claims Rejected


(MENAFN) US customs authorities have turned away approximately 15% of import entries reviewed through a newly launched tariff refund portal, as American businesses race to recoup payments following a landmark Supreme Court ruling that invalidated billions in tariffs, according to a court filing submitted Tuesday.

Tens of thousands of US importers are collectively pursuing returns on $166 billion in tariffs that were struck down after the Supreme Court ruled on Feb. 20 that President Donald Trump had unlawfully leveraged the International Emergency Economic Powers Act to impose levies on foreign goods entering the country.

US Customs and Border Protection activated its online refund portal on April 20 to begin processing the flood of incoming claims.

Of the 13.3 million import entries that passed an initial screening, roughly 15% had been rejected as of April 26 for failing "entry-specific validations," according to Brandon Lord, an executive director at Customs and Border Protection, in an update submitted to the US Court of International Trade in Manhattan.

CBP indicated that importers whose claims were rejected are permitted to correct errors and resubmit. Approximately 1.74 million approved entries have already advanced into the active refund pipeline, the filing revealed. Earlier government data showed that businesses and individuals originally paid the disputed tariffs across some 53 million entries — underscoring the enormous scale of potential repayments still pending.

The agency had previously outlined that entries may face rejection if submitted data was improperly formatted, files arrived corrupted, or the submitter did not match the listed importer of record or the broker responsible for filing entry summaries.

Refund Framework Left Unresolved by High Court
Notably, the Supreme Court's 6-3 ruling stopped short of establishing how refunds should be administered, deliberately leaving that determination to lower courts — a gap that has placed the procedural burden squarely on agencies and trade tribunals to resolve amid mounting pressure from the business community.

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