Refunds may be available on some tariffs applied to goods from India: US Chamber of Commerce after SC ruling

New York/Washington, Feb 20 (PTI) A leading US business chamber on Friday said refunds would be available for some levies applied to goods from Brazil and India after the Supreme Court struck down President Donald Trump’s sweeping tariffs.

In a 6-3 vote, the judges found that the International Emergency Economic Powers Act (IEEPA) does not authorise the imposition of duties. Justices Clarence Thomas, Samuel A Alito Jr. and Brett Kavanaugh dissented in the court's decision.  The US Chamber of Commerce welcomed the Supreme Court’s decision to strike down Trump’s sweeping tariffs, calling on the administration to use this opportunity to reset the overall tariff policy to lower costs for families.

Executive Vice President and Chief Policy Officer at the US Chamber of Commerce Neil Bradley said the Supreme Court’s decision is “welcome news” for businesses and consumers.  “Over the past year, the Chamber has been working with small and midsize businesses around the country that have seen significant cost increases and supply chain disruptions as a result of these tariffs,” Bradley said in a statement.  “Swift refunds of the impermissible tariffs will be meaningful for the more than 200,000 small business importers in this country and will help support stronger economic growth this year,” he added.

It noted that the Court’s decision has “opened the door” for many US small businesses to seek refunds, but added that determining whether a business qualifies for the refund —and understanding what steps to take next—can be challenging.

US importers of record who directly paid the tariffs or the person who takes ownership of the goods once they have cleared customs (the “consignee”) may be eligible for a refund, it said in an FAQ about who could be eligible for the tariff refunds.

“Businesses that did not directly pay the tariffs are not eligible for a refund. Refunds are only available for tariffs applied under the International Economic Emergency Powers Act (IEEPA). This includes tariffs commonly known as “fentanyl,” “trafficking,” “reciprocal,” or “baseline” tariffs, as well as some other tariffs applied to goods from Brazil and India,” it said.

Trump had imposed 25 per cent reciprocal tariffs on India and an additional 25 per cent punitive tariff for Delhi’s purchases of Russian oil.  While he slashed the reciprocal tariffs to 18 per cent, the 25 per cent levies imposed for Russian oil purchases were removed, with Trump noting the commitment by India to stop directly or indirectly importing energy from Moscow and purchasing American energy products.

The chamber added that refunds are not available for so-called Section 232, Section 301, Section 201, anti-dumping and countervailing duties, or most-favoured nation (MFN) tariffs.

It noted that the process for obtaining tariff refunds remains uncertain. “We expect to learn more from the courts and from the administration in the days ahead,” it said.

It encouraged the Trump administration to use this opportunity to reset overall tariff policy in a manner that will lead to greater economic growth, larger wage gains for workers, and lower costs for families.

It had filed an amicus brief arguing that the challenged tariffs were enacted in excess of statutory authority and are causing irreparable harm to businesses of all sizes. PTI YAS RD RD RD