TARIFF UPDATE: CAPE Opening April 20; Plus a Change in Section 232 Calculations
Since our last update on the tariff picture we have seen two significant developments that warrant another report on the issue. One has to do with tariff refunds, which is the issue we get asked about the most.
The other has to do with a redefinition of how Section 232 tariffs are applied to products containing steel, aluminum and copper.
Let’s deal with the refund question first.
CAPE Partial Opening April 20 . . . But There Might Be a Twist
As we told you in our March 25 update[MC1] , U.S. Customs and Border Protection has been working on launching its CAPE portal, which is the portal though which importers can apply for refunds of the tariffs they paid before the Supreme Court struck them down.
CBP has now announced it will begin rolling out the portal on Monday, April 20. But the initial phase will be limited to certain unliquidated entries and certain entries within 80 days of liquidation.
Importers of record (IORs) or authorized brokers will file CAPE declarations through the ACE portal, after which CBP will recalculate the tariffs that would have been due without the tariffs that were struck down in the IEEPA ruling.
Those who intend to file are asked to prepare by making sure they have an ACE portal account, and that the bank account information for the refunds has been added to the account.
Here are some links that might be helpful:
- One Page Overview: ACH Refund Enrollment
- Frequently Asked Questions: ACE Portal and ACH Refunds FAQs
- Training Video: Applying for an ACE Portal Importer Account and Enrolling in ACH Refunds
- Training Guide: ACE Portal Importer Account Application
- Training Guide: ACH Refund Enrollment in the ACE Portal
- Rejected ACH Refund Information: Replacement Refund Instructions
The Potential Twist
The administration has until June 20 to ask for an injunction against this process, which was mandated by the Court of International Trade. It would likely just delay the process, but the U.S. may very well want that delay to give itself more time on this.
So as you look forward to April 20 and the Phase 1 opening of CAPE, keep that in mind.
A Reconfiguration of Section 232 Tariffs
Section 232 Tariffs are imposed on products containing steel, aluminum and copper, and the way they are calculated is changing.
The old method imposed a 50 percent tariff on the value of whatever percentage of steel, aluminum or copper was contained in an item. So if you had an object that was 20 percent steel, then the value of that steel would be tariffed at 50 percent.
The new method will work like this:
If an item contains less than 15 percent steel, aluminum or copper (by weight, not by value), then the item is not charged a 232 tariff at all. But if it’s more than 15 percent steel, aluminum or copper, then the entire item is subject to a Section 232 tariff of either 25 percent or 50 percent depending on the HTS codes that apply.
We urge those reading this update to check with us on the further particulars. We’ve had some customers who used to be subjected to Section 232 tariffs and now are not, but others will pay more than they used to.
Let’s make sure you get this right.
