CBP To Stop IEEPA Collections at Midnight and Start Section 122 Ten Percent Collections at 12:01am ET February 24th
U.S. Customs and Border Protection (CBP) will stop collecting IEEPA tariffs at 12:00am ET February 24th, and start imposing a new additional global 10 percent Section 122 tariff (Trade Act of 1974) at 12:01am ET on February 24th.
President Trump invoked Section 122 to address “fundamental international payment problems.” The 10 percent ad valorem tariff on U.S. imports is temporary for a 150-day period, and requires Congressional approval to be extended. President Trump declared at a press conference his intent to imminently raise the 10 percent tariff to 15 percent, and has indicated his intent to ramp up alternative tariffs like Section 232 National Security Tariffs and Section 301 Discriminatory Trade Practices Tariffs.
Unlike IEEPA tariffs by summary Executive Order, those alternative trade statutes involve formal procedural steps and lengthy timelines before tariffs can be imposed. This past weekend, Treasury Secretary Bessent echoed the President’s plan to use alternative tariffs, with Section 122 as a stopgap. When asked what the Administration would do regarding refunds of IEEPA tariffs, Bessent said that the Supreme Court has left refunds in the hands of the U.S. Court of International Trade (CIT)—that the CIT will instruct CBP. CBP, however, put out a cargo message stating: “CBP is working with other government agencies to fully examine the implications of the SCOTUS decision. CBP will provide additional information and technical guidance for ACE filings as soon as it becomes available.” Meanwhile, members of Congress and others have begun calling for CBP to issue refunds immediately. Undoubtedly, we will hear more on this subject from the President tomorrow at his State of the Union address.
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Attorneys in Pierson Ferdinand LLP’s International Practice counsel clients how to mitigate the impact of tariffs and help companies stay compliant. We practice before the U.S. Trade Representative (Executive Office of the President), Department of Commerce, U.S. Customs and Border Protection, U.S. International Trade Commission, other federal regulatory agencies. We also litigate trade claims in the US courts involving claims against federal agencies as well as disputes between commercial parties. For additional information, please contact the following PierFerd International Practice attorneys or your regular PierFerd contact for assistance:
Chris Pey, Founding Partner chris.pey@pierferd.com
Philip Gallas, Founding Partner philip.gallas@pierferd.com
Tiffany Comprés, Founding Partner, tiffany.compres@pierferd.com
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