“The path to refund 244 trillion won in U.S. tariffs has been opened”… Daeryun successfully completes tariff refund and trade webinar

Daeryun Law Firm announced on the 8th that it successfully completed the 'U.S. Tariff Refund and Trade Risk Response Webinar for Foreign Companies' held jointly with the Korea Foreign Companies Association (KOFA).

This webinar was prepared to analyze the tariff refund process, which has recently begun in earnest following the U.S. Supreme Court's ruling that the International Emergency Economic Powers Act (IEEPA) is illegal, and to explore companies' preemptive trade risk response strategies. At this event, executives from foreign companies as well as managers from legal, financial, and SCM departments participated and showed great interest.

In the first session, Myeong Jae-ho, a customs expert, appeared as a speaker and gave a presentation on the U.S. IEEPA tariff refund system and the latest practical trends. Commissioner Myeong explained the step-by-step application scope and practical procedures of the 'CAPE (Consolidated Administration and Processing of Entries)' system, the online refund portal of the U.S. Customs and Border Protection (CBP), which began operation on the 20th of last month.

Commissioner Myeong emphasized, “This refund is not an automatic refund according to the Supreme Court ruling, and can only be received if the official importer (IOR) applies directly through the CAPE system.” He also advised that it is essential to secure a financial account in the United States, and that separate procedural alternatives, such as objections, must be quickly prepared to respond to cases that are not subject to system application.

In the second session, Dong-Hoo Son (USA), a foreign lawyer, gave a lecture focusing on major issues after refunds. Attorney Son requested an approach that clearly separates the actual receipt structure of the refund from the legal attribution structure.

Attorney Son pointed out, "In DDP (Duty Paid Delivery) transactions, etc., if the IOR on paper and the actual duty bearer are different, there is a risk that the refund will be paid preferentially to the entity other than the economic bearer."

He then emphasized, "To prevent such disputes, we must carefully reorganize the pre-contract structure, such as rights transfer and profit sharing, and comprehensively examine future trade risks linked to Articles 301 and 232 of the Trade Act."

Kim Kook-il, CEO of Daeryun Management, said, "This webinar was an opportunity to look at the practical pitfalls and structural risks that foreign companies may face in a situation where refund opportunities worth about 166 billion dollars (KRW 244 trillion) are open." He added, "I hope that in the future, companies will clearly establish the legal entity and secure logical consistency in preparation for the upcoming wave of trade."

Eunhye Lee (zhses3@joseilbo.com)

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"The path to refund 244 trillion won in U.S. tariffs has been opened"... Daeryun, Customs Refund/Trade Webinar Successfully Completed (Go)