Submitting a tariff refund claim must surely be one of the most aggravating processes a business owner has to endure.
Mountains of paperwork, rigid deadlines and an IRS that wants to make life difficult. Hire the right attorney and you can:
- Recover duties paid on goods
- Protect your refund rights before deadlines pass
- Cut through the red tape at customs
And get the money back that’s rightfully yours.
Here is how trade counsel do it…
What you’ll discover:
- Why Tariff Disputes Are Exploding Right Now
- How Trade Counsel Build A Tariff Refund Claim
- The Biggest Mistakes Importers Make
- Working With Customs Authorities The Right Way
Why Tariff Disputes Are Exploding Right Now
Tariff disputes are at an all-time high.
After last week’s Supreme Court decision regarding the IEEPA tariffs, companies are filing paperwork to recoup tariffs paid in the last two years. Over 330,000 importers paid tariffs on 53 million shipments and the vast majority will receive some refund.
The numbers are massive.
About $166 billion of revenue collected by the government related to those tariffs will have to be refunded. That’s a lot of cash at customs agencies — businesses want their money.
But here’s the problem…
It’s not simple. There are deadlines. There are forms. And there’s a whole new portal named CAPE that doesn’t always function as it should. Trade counsel understand the system and understand the rules. They can help guide you through disputes if things go awry.
If you’re an importer attempting to refund duties yourself, best of luck to you. Truth be told, experienced tariff refund attorneys handle all of it for you so you don’t have to worry about the headaches associated with filing a tariff refund petition. Whether it be protest letters or court documents, they handle everything from A to Z.
How Trade Counsel Build A Tariff Refund Claim
It takes more than filing a form and waiting for a check to build a tariff refund.
Trade counsel have a detailed process they go through to ensure clients receive every penny owed to them. Here’s what happens…
Step 1: Audit Every Entry
The first thing a good trade attorney will do is audit every entry. Dates of entry, HTS classifications, duties paid, liquidation status, etc.
This allows them to see exactly what taxes were paid on duties and what is refundable.
Step 2: Check The Deadlines
Next, deadlines.
Normally, companies have 180 days from when goods are “liquidated” by US Customs to protest and request refunds. If you miss that deadline, it’s gone forever. Trade counsel ensure all protests are timely filed — even if that means filing placeholder suits just to preserve refunds.
Step 3: File The Right Paperwork
Each type of refund has different documentation associated with it. Some refunds require a CAPE declaration. Some refunds require a post-summary adjustment. Some require a letter of protest. Others require litigation.
A good trade attorney knows which path to take.
Step 4: Negotiate With Customs
Customs doesn’t always behave itself. Sometimes claims are denied. Sometimes they are rejected due to “compliance concerns”. Sometimes they sit for months before being processed.
This is where trade counsel really earn their keep.
The Biggest Mistakes Importers Make
Importers repeat the same mistakes again and again. Here are the most common ones to avoid…
Mistake #1: Waiting Too Long
The biggest mistake is waiting too long to act.
If you miss the narrow window to file for a tariff refund after liquidation, you’re out of luck. About 15 percent of tariff refund claims have been denied since an online reimbursement portal opened April 20, many due to poor timing or incomplete documentation.
Hurry! The sooner you act, the better chance you have of recovering your funds.
Mistake #2: Filing The Wrong Form
Tariff refunds can be claimed via four methods: CAPE declarations, after summaries are posted, protests with U.S. Customs and Court of International Trade lawsuits.
They each have different requirements and deadlines. If you file the wrong form, your claim can be denied — or the deadline can pass while you’re trying to correct it.
Mistake #3: Trying To Do It Alone
Customs law is intricate. The forms are bewildering. The regulations change constantly and the stakes are high if you get it wrong.
Many importers attempt to self-file their claim to save money. However, when you have hundreds of thousands of dollars in duties at stake, the price of being incorrect far outweighs hiring competent legal counsel.
Mistake #4: Ignoring Contractual Risks
Here’s something most importers don’t think about…
If you receive a refund on tariffs that you previously passed on to your customers …your customers may want a share of that refund. Class actions have already been filed nationwide.
Working With Customs Authorities The Right Way
Customs authorities are not your enemy. But they’re not your friend either.
It’s all about preparedness, professionalism and persistence. How do trade counselors make it happen…
Be Prepared
Prior to contacting customs regarding a tariff refund claim, your lawyer will compile all necessary documentation. This can consist of entry summaries, commercial invoice, bill of lading, HTS classification information and proof of payment of duties.
Showing up with complete documentation makes the whole process faster and smoother.
Be Professional
Customs officers interact with thousands of importers daily. Those who achieve the best results respect customs.
One thing a skilled trade attorney can do is talk the talk with customs officials.
Be Persistent
Occasionally claims languish. Sometimes they are denied for illogical reasons. Occasionally you must threaten supervisor intervention or a formal appeal.
Trade attorneys know when to push and when to wait. They understand how to keep your tariff refund petition moving forward despite delays by customs.
Final Thoughts
Tariff disputes are messy. They’re complicated, time-sensitive and high stakes.
However, if you have knowledgeable trade counsel in your corner, you can recoup those paid duties and prevent future headaches. Let’s review quickly:
- Audit every entry to find refund opportunities
- Check the deadlines and file on time
- Use the right forms and procedures
- Work with customs authorities professionally
- Get an attorney involved early
The companies that recover the most funds act quickly and they know they cannot do it by themselves. Billions of dollars in tariff refunds are available. Your best investment is experienced trade counsel.
