A recent U.S. Supreme Court ruling that tariffs cannot be imposed under the International Emergency Economic Powers Act (IEEPA) has opened the door for businesses to consider recovering duties previously paid under those measures.
The decision means importers may now be able to reclaim up to 100% of tariffs imposed under IEEPA, subject to how the recovery process is implemented.
Andrew Thurston, Customs Duty & Indirect Tax Consultant at MHA, the accountancy and business advisory firm, said: “The U.S. Supreme Court’s decision on February 20th confirms that tariffs cannot be imposed under IEEPA.
"For importers who have paid duties under those measures, the ruling raises a clear question – whether those payments can now be recovered.
“Importers may have the opportunity to recover the full amount of tariffs paid under IEEPA. However, the practical process for doing so will depend on how the ruling is implemented through U.S. Customs and Border Protection and the U.S. Court of International Trade.
Andrew Thurston, Customs Duty & Indirect Tax Consultant at MHA
“In practice, this is unlikely to be automatic. Businesses may need to review historic import entries, identify where IEEPA tariffs were applied and determine whether claims or protests should be lodged.
“For companies with exposure to these duties, preparation is important. That means ensuring import documentation is complete and understanding the value of tariffs paid across supply chains.
“The ruling creates a potential opportunity for recovery, but it also requires careful analysis and timely action. Businesses that act early will be best placed to understand their position and respond as the recovery process becomes clearer.”
President Trump has moved quickly to reintroduce 10% tariffs on goods from much of the world under a different law. However, these measures expire after 150 days, in July. While the administration has indicated an intention to increase this temporary rate to 15%, this has not yet been implemented.
MHA is the UK member firm of Baker Tilly International. Among its UK locations, the firm has offices in Aberdeen and Edinburgh.
For more information, visit - https://www.mha.co.uk/