CONTENTS
- 1. Customs Litigation | Why U.S. Tariff Policy Went to Court
- - Replacement Tariffs Also Face Litigation
- 2. Customs Litigation | Why Tariff Policy Leads to Legal Disputes
- - Customs Refund Procedures That Matter to Businesses
- - Corporate Response Strategies in the International Trade Environment
- 3. Customs Litigation | The Importance of Responding to Global Trade Disputes
1. Customs Litigation | Why U.S. Tariff Policy Went to Court
Customs litigation is a representative international trade dispute procedure that subjects a nation's tariff policy itself to legal review, and it has recently emerged as a key issue in the global trade market as thousands of tariff refund lawsuits have been filed in the United States.
After the U.S. Supreme Court found the reciprocal tariffs imposed by the Trump administration to be unlawful, businesses that had paid those tariffs filed a series of lawsuits seeking refunds, and as a result tariff policy has entered a full-fledged stage of legal dispute.
The U.S. Court of International Trade (CIT) recently ordered that refund procedures be initiated for importers with respect to tariffs that the Trump administration had collected on the basis of the International Emergency Economic Powers Act (IEEPA).
This is a follow-up measure taken after the U.S. Supreme Court found that the imposition of those tariffs was an action that exceeded its legal basis.
The court directed U.S. Customs and Border Protection (CBP) to recalculate the duty amounts, excluding the tariffs found to be void, and then to refund the difference to importers.
The lawsuits filed by businesses that had already paid those tariffs are reported to number more than 2,000 alone. The issue lies in the scale of the refunds.
The amount the U.S. government collected through those tariffs reaches approximately USD 134 billion (about 195 trillion won), and some forecasts suggest that the scale of the refunds could expand to as much as USD 175 billion (about 256 trillion won).
Replacement Tariffs Also Face Litigation
The issue did not end there.
Immediately after the Supreme Court's ruling voiding the tariffs, President Trump announced a new tariff policy based on Section 122 of the Trade Act, but this measure, too, was promptly drawn into a legal dispute.
The reason is that the governments of 24 states, including the State of Oregon, filed suit before the Court of International Trade (CIT) seeking to void the tariffs, arguing that the measure exceeded the scope permitted by law.
The state governments that filed suit are challenging the following points.
In other words, the argument is that the replacement tariffs likewise lack a sufficient legal basis.
As tariff policy has faced one lawsuit after another in this way, a situation has continued in which U.S. trade policy itself becomes the subject of legal review.
2. Customs Litigation | Why Tariff Policy Leads to Legal Disputes
Tariffs are a key means of implementing a nation's trade policy, but at the same time they function as a direct cost burden for businesses.
In particular, where a tariff is imposed on the basis of a specific legal ground, a dispute may arise over the interpretation or scope of application of that underlying statute.
The Supreme Court found that the reciprocal tariffs and the fentanyl tariffs that the Trump administration imposed on the basis of the IEEPA lacked a sufficient legal basis.
However, it did not provide clear guidance on how to handle tariffs that had already been collected, and it left that determination to the lower court, the Court of International Trade (CIT).
After the CIT subsequently ordered the commencement of refund procedures, large-scale tariff refund lawsuits are now proceeding in earnest.
Customs Refund Procedures That Matter to Businesses
Customs litigation also has a direct effect on a company's financial structure.
In particular, where the imposition of a tariff is found to be unlawful, a business may obtain a refund through the following procedures.
- Administrative challenge against the disposition imposing the tariff
- Claim for a tariff refund
- Filing of customs litigation
- Conducting refund procedures pursuant to the court's judgment
As in this U.S. case, where a tariff policy is found to be unlawful by a court, businesses may recover tariffs they have already paid, and the scale of such refunds may reach tens of trillions of won.
Corporate Response Strategies in the International Trade Environment
In the recent global trade environment, tariff policy often changes rapidly depending on political and economic circumstances.
In such situations, it may be necessary to review both the legality of the imposition of the tariff and the possibility of a refund together.
In particular, the possibility of customs litigation should be reviewed in the following cases.
Because tariff disputes are a complex area in which international trade norms and domestic law apply simultaneously, specialized legal review is necessary.
3. Customs Litigation | The Importance of Responding to Global Trade Disputes
This U.S. tariff refund ruling shows that tariff policy can lead to large-scale legal disputes and corporate financial risk.
In particular, as global supply chains expand and the protectionist trade policies of various countries grow stronger, tariff disputes may continue to increase going forward.
Accordingly, for exporting and importing companies or companies conducting global business, it is important to review in advance the legal risks arising from changes in tariff policy and, where necessary, to prepare a legal response strategy that includes customs litigation.
With the recent spread of global protectionism and changes in tariff policy, customs litigation and trade disputes have been increasing.
Daeryun Law Firm LLP has been selected as an implementing institution for the export voucher program administered by the Ministry of Trade, Industry and Energy and the Ministry of SMEs and Startups, and it supports exporting companies in responding to customs and trade risks.
Through a structure in which not only attorneys but also customs specialists holding licensed customs broker qualifications and tax accountants collaborate, Daeryun provides one-stop legal services covering the review of export contracts, the handling of customs disputes, and the examination of customs clearance and tax risks.
In addition, drawing on collaboration with international customs and trade specialists and on a global network that includes the U.S. local law firm SJKP as well as networks in Japan and the EU, it responds strategically to the customs disputes and trade risks that arise in the course of a company's overseas expansion.
If you need assistance with customs litigation or related legal disputes, you are welcome to 🔗schedule a legal consultation with a customs attorney.
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