The Korea International Trade Association (KITA) said Tuesday it held an online briefing on "Tariff Refunds Under the US International Emergency Economic Powers Act (IEEPA) and Section 232 Tariff Risk Response."
The briefing was organized to guide exporters on the tariff refund application procedures that the US government launched on April 20 following the court ruling against IEEPA reciprocal tariffs, as well as precautions and recent developments in tariff measures. Approximately 250 officials from exporting companies attended the session.
Cho Sung-dae, head of KITA's Trade Research Department, explained that the 10% tariff imposed under Section 122 of the Trade Act, which replaced the reciprocal tariffs, can be levied only for up to 150 days. "Extending the tariff beyond July 24 would require congressional cooperation, but the likelihood is low," Cho said. "The US administration also appears to be pursuing Section 301 of the Trade Act as a contingency."
Kim Tae-joo, executive director at Samjong KPMG, stressed that companies should expedite their refund applications, as the possibility of an administration appeal cannot be ruled out. Kim warned that if errors in country of origin, product classification, or declared prices are found during the US Customs and Border Protection (CBP) review process, the refund could be withheld, and could even lead to tariff recovery and penalties. He also provided guidance on practical procedures, including setting up refund accounts.
Shim Jong-sun, a partner at Deloitte Anjin, explained the recently revised method of imposing tariffs under Section 232 of the Trade Expansion Act. In the past, derivative products of steel, aluminum, and copper were subject to a complex structure in which Section 232 product tariffs applied to the metal content portion while reciprocal tariffs applied to the non-content portion, fueling continued controversy over customs valuation.
He also emphasized the importance of calculating declared prices and securing supporting documents during the refund application process. "Refunds may be delayed as the metal content value declarations on previously cleared shipments are reviewed together," he said.
