Texas Border Business
By Roberto Hugo González / Texas Border Business
A common belief among importers is that if tariffs under the International Emergency Economic Powers Act are invalidated in court, refunds will automatically be issued. Jorge Torres, President and CEO of Interlink, cautions that this assumption is misleading. “At this point, even if the court determines that the IEEPA tariffs were imposed illegally, there is no guarantee of refunds,” Torres said.
Torres explained that companies should focus on preparation while litigation is still pending. He recommended that importers keep all documents organized and accessible, particularly entry packages, in case protests are filed. He also noted that trade attorneys are suggesting some importers consider filing suit against the government at the Court of International Trade, though he emphasized that this is a complex decision that must be reviewed by executive leadership with legal counsel.
The liquidation process handled by U.S. Customs and Border Protection is a critical factor in determining refund eligibility. Torres said entries generally liquidate 314 days from the date of entry, after which importers have 180 days to file a protest. Without careful monitoring, companies could lose their window to pursue refunds. “Over time, importers might lose opportunities for refunds if they are not actively monitoring liquidation dates,” he said.
When deciding whether to file a protective protest or pursue a claim in the Court of International Trade, Torres said the choice should be evaluated by a company’s executive team alongside legal advisors. While filing a court claim may increase the likelihood of obtaining a refund, he noted that the process can be both complicated and expensive. Torres added that the amount of money at stake should guide the decision.
Strong documentation is essential for any importer anticipating a possible refund claim. Torres said companies should ensure that all entry records are complete and readily accessible. These records include entry summaries, invoices, packing lists, certificates of origin, and related materials. He also advised importers to monitor liquidation and tariff payment reports closely to maintain a clear understanding of how much money could potentially be recovered.
Litigation before the Court of International Trade carries financial and strategic risks. Torres described the process as costly and somewhat complex, adding that some companies worry about possible government retaliation. “Some importers are hesitant to file lawsuits because they hold government contracts or fear government scrutiny,” he said.
For multinational organizations, Torres stressed that managing potential refund claims requires close coordination across departments. Trade compliance, logistics, finance, and legal teams should maintain constant communication to ensure documentation and reporting are ready should protests become necessary. Maximizing any opportunity for refunds, he noted, is a team effort that requires timing and precise coordination.
