U.S. importers still paying Trump's illegal tariffs even after Supreme Court ruling
#Trump tariffs #Supreme Court ruling #U.S. Customs #Import duties #IEEPA tariffs #Trade compliance #Refund process #International Trade
📌 Key Takeaways
- U.S. importers continue paying Trump's 'reciprocal' tariffs despite Supreme Court ruling they are illegal
- CBP hasn't updated its system to remove the tariffs, requiring importers to report them for cargo release
- An estimated $8.2 billion worth of goods arrived in U.S. ports over the weekend with tariffs still applied
- Refund questions remain unresolved, with the U.S. Court of International Trade yet to rule on this aspect
📖 Full Retelling
Despite Friday's Supreme Court decision that ruled President Donald Trump's 'reciprocal' tariffs illegal, U.S. importers are still paying billions in duties on goods entering the country as U.S. Customs and Border Protection has yet to update its system to remove the tariffs imposed under the International Emergency Economic Powers Act. The Supreme Court ruling came as a significant development in trade policy, but practical implementation has lagged. U.S. Customs posted a bulletin acknowledging the decision, stating they are 'working with other government agencies to fully examine the implications' and will provide additional guidance when available. The Automated Commercial Environment, the paperless system used for processing imports and exports, still requires importers to report the IEEPA tariff codes to obtain release of goods. According to Lori Mullins, director of operations at Rogers & Brown Custom Brokers, 'Customs has not removed the requirement to report the IEEPA tariff codes in order to obtain a release of goods, so for cargo to continue moving, the IEEPA tariffs are still being reported on entries.' The scale of the issue is substantial, with an estimated 211,000 containers valued at $8.2 billion arriving in U.S. ports between Friday and Sunday alone. Importers have a 10-day window to pay these tariffs, with no money actually transferring until day 10. This allows for amendments to customs entry summaries up to 9 days after cargo release before payment must be made on day 10. However, questions remain about how CBP will handle entries for cargo released over the last 10 days that will be paid next week. Michael Lowell, partner at law firm Reed Smith, explained that 'it'll likely take Customs some time to reconfigure their system,' meaning importers who filed paperwork with the tariff over the weekend may need to file post-summary corrections once the system is updated. Beyond the immediate system issues, a layer of uncertainty surrounds refunds, which the Supreme Court did not rule on. These questions will be decided by the U.S. Court of International Trade (CIT). Ben Bidwell, senior director for Customs at CH Robinson, noted this is 'the first time a tariff has been declared unconstitutional with this amount of money at stake,' creating many questions about whether refunds will be available. Kuehne + Nagel, a transportation and fulfillment services giant, warned that while CIT is expected to handle refund mechanisms, 'no timelines exist; high volumes of claims could create years-long delays.' The CIT has yet to comment on the matter, leaving importers in a state of limbo regarding potential refunds.
🏷️ Themes
Trade Policy, Legal Challenges, Import/Export Issues
📚 Related People & Topics
Tariff
Goods import or export tax
A tariff or import tax is a duty imposed by a national government, customs territory, or supranational union on imports of goods and is paid by the importer. Exceptionally, an export tax may be levied on exports of goods or raw materials and is paid by the exporter. Besides being a source of revenue...
Tariffs in the Trump administration
Topics referred to by the same term
Tariffs in the Trump administration could refer to:
Entity Intersection Graph
Connections for Tariff:
👤
Donald Trump
30 shared
🌐
Supreme court
28 shared
👤
State of the Union
10 shared
🌐
Commercial policy
7 shared
Original Source
Despite Friday's Supreme Court decision that ruled President Donald Trump's "reciprocal" tariffs are illegal, U.S. importers are still paying duties on goods entering the country. U.S. Customs and Border Protection has yet to update its Cargo System Management Service to remove the duties imposed by Trump under the International Emergency Economic Powers Act . Under U.S. trade policy, Customs must post updates on tariff changes and other trade-related information on its Cargo Systems Messaging Service . On Friday, Customs posted a bulletin on the decision saying, " he CBP is working with other government agencies to fully examine the implications of the SCOTUS decision. CBP will provide additional information and technical guidance for Automated Commercial Environment filers as soon as it becomes available." CNBC was told by Customs that this is the latest update for importers for now. The paperless Automated Commercial Environment is the Customs system used for processing imports and exports. An executive order signed by Trump in March charged the CBP with modernizing its manual payment system. "Customs has not removed the requirement to report the IEEPA tariff codes in order to obtain a release of goods, so for cargo to continue moving, the IEEPA tariffs are still being reported on entries," explained Lori Mullins, director of operations at Rogers & Brown Custom Brokers. "We are still anticipating a CSMS message confirming that a change to now accept entries without these tariffs, but as of now, that change has not been made, and Customs still requires them." An estimated 211,000 containers of goods, valued at some $8.2 billion, arrived in U.S. ports between Friday and Sunday, according to Vizion's trade platform Tradeview. Mullins said importers have a 10-day window to pay the tariffs. "No money is actually being transferred until day 10, so Custom entry summaries can be amended up until 9 days after cargo release, before the payment must be paid on day 10. After...
Read full article at source