KITA, US Tariff Refund Online Briefing..."Application Must Be Expedited"

KITA, US Tariff Refund Online Briefing..."Application Must Be Expedited"

The Korea International Trade Association (KITA) held an 'Online Briefing on US International Emergency Economic Powers Act (IEEPA) Tariff Refunds and Section 232 Tariff Risk Response' for export companies to the US on the 6th.

This briefing was organized to guide the refund application procedures and precautions, following the US government's initiation of IEEPA reciprocal tariff refund procedures starting last month on the 20th. Approximately 250 officials from domestic export companies attended the event.

Cho Seong-dae, head of KITA's Trade Research Department, explained that the 10% tariff under Trade Act Section 122, which came into effect to replace reciprocal tariffs, can only be imposed for up to 150 days.

He analyzed, "Cooperation from Congress is needed to impose tariffs even after July 24, but the possibility is not high," adding, "The US administration also seems to be proceeding with Section 301 procedures of the Trade Act in preparation for this."

Kim Tae-joo, Executive Director at Samjong KPMG, emphasized that companies should expedite their refund applications given the possibility of an appeal by the US administration.

He urged thorough caution, stating, "If errors are found in origin, product classification, declared value, etc., during the review process by the U.S. Customs and Border Protection (CBP), it could lead not only to a suspension of the refund but also to tariff collection and penalties."

Practical procedures such as setting up refund accounts were also guided.

Shim Jong-sun, Partner at Deloitte Anjin, explained the recently revised Section 232 tariff method of the Trade Expansion Act.

He stated, "In the past, steel, aluminum, and copper derivative products had a complex structure where Section 232 product tariffs were imposed on the metal content portion, and reciprocal tariffs were imposed on the non-content portion, leading to ongoing controversy over the calculation of taxable value." He added, "Refunds may be delayed as the declared value of metal content from existing customs clearances is reviewed together."

On February 20 this year, the US Supreme Court ruled that the Trump administration's imposition of reciprocal tariffs based on the IEEPA, enacted in 1977, was illegal.

According to data submitted by CBP to the U.S. Court of International Trade (USCIT), there are 330,000 eligible importers for refunds, with a total of 53 million import cases.