Murphy: Download ACE Records of Tariff Payments to Ensure Possible IEEPA Refunds
Sidley trade practice co-lead Ted Muprhy advised clients to prepare now for a potential court ruling overturning International Emergency Economic Powers Act tariffs by downloading import reports from ACE to demonstrate how much they have paid in IEEPA tariffs since they began. He also said they should do so each month from now on, until there is a final resolution in court.
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He pointed to the letter the DOJ sent to the Federal Circuit, arguing that a ruling against the legality of IEEPA tariffs would unwind agreements with partners such as the EU, which has agreed to 15% tariffs on most of its exports to the U.S. The letter said that the agreements will bring in trillions, and "a forced dissolution of the agreements could lead to a 1929-style result. In such a scenario, people would be forced from their homes, millions of jobs would be eliminated, hard-working Americans would lose their savings, and even Social Security and Medicare could be threatened. In short, the economic consequences would be ruinous, instead of unprecedented success."
"Given that letter, we are recommending that all clients take steps now to ensure that they have in their possession the information necessary to substantiate the tariffs paid to date," he wrote.
"If the IEEPA tariffs are ultimately struck down, the government may be ordered to refund the tariffs directly to the importers. It is also possible, however, that the court allows the government to require that importers affirmatively file for refunds. In this latter case, the government may try to require importers to identify the amount of the refund owed. While this information is currently available in ACE, we should not assume that will always be the case. "
After suggesting that the government would try to suppress information that would enable importers to file for refunds, he wrote, "Better to be safe than sorry."