Interpretation Of The Latest US Tariff And Customs Clearance Tax Rebate Policies

 

Major Adjustments to U.S. Tariffs and Duty Refund Policies

Recently, significant adjustments have been made to U.S. tariffs and customs duty refund policies. On February 20, 2026, the U.S. Supreme Court issued a key ruling: certain tariff measures implemented under the International Emergency Economic Powers Act (IEEPA) exceeded the scope of legal authorization. This means that tariffs previously imposed by the U.S. government under IEEPA are now deemed illegal, and a refund process will be initiated. Relevant importers can legally apply for refunds of such tariffs paid over the past year.

 

 

 

Effective from 12:00 AM (EST) on February 24, U.S. tariffs are undergoing a dual adjustment-the revocation of certain illegal tariffs and the addition of new global temporary tariffs. The overall tariff rates have changed significantly. The specific calculation methods and exemption rules are as follows:

1. Before Adjustment (Old Tariffs): Total Rate 45%

The base rate consisted of two parts, calculated cumulatively:

① Section 301 Tariffs: Imposed on Chinese goods imported into the U.S. since 2018. The mainstream rate is 25%, covering approximately $370 billion worth of Chinese goods. This ruling did not involve these tariffs, so they remain in effect.

② IEEPA Tariffs: Total 20%, including a 10% Fentanyl tariff + 10% Reciprocal tariff (these have been ruled illegal and are cancelled effective February 24).

Old Rate Summary: 25% (Section 301) + 20% (IEEPA Tariffs) = 45%.

2. After Adjustment (Latest Tariffs): Total Rate 35%

The core of the adjustment is "one cancellation, one addition":

① Cancellation: The 20% IEEPA tariffs (Fentanyl tariff + Reciprocal tariff).

② Addition: "Section 122 Tariffs," i.e., a 10% global temporary tariff, implemented under Section 122 of the Trade Act of 1974. This tariff is valid for 150 days, until July 24, 2026. Congressional approval is required for any extension beyond this date.

Latest Rate Summary: 45% (Old) - 20% (Cancelled) + 10% (Added) = 35%. The overall tariff rate has dropped by 10 percentage points, which is significant positive news for importers.

3. Key Exemption Rules

Not all goods are subject to the 10% global temporary tariff. Products already subject to Section 232 tariffs are exempt from this temporary tariff. This specifically includes: steel, aluminum, copper, auto parts, lumber, semiconductor products, etc. Such goods will continue to be subject to Section 232 tariffs without the additional 10% temporary tariff.

Additionally, the authorities have clarified ten categories of exempted goods, including: goods in transit loaded before February 24 and entering by February 28; civil aircraft and parts; goods originating in Canada/Mexico that qualify under the USMCA; products for religious use; informational materials, etc. Relevant companies should verify their exemption eligibility based on their product classifications.

 

 

1. Core Prerequisite for Refund

Refunds are only applicable to the "Importer of Record (IOR)". Applications can be made to reclaim IEEPA-related tariffs paid in the past year. Companies that have not completed ACE account registration and ACH refund authorization will have their refund funds held in a non-interest-bearing account at the U.S. Treasury and cannot access them normally.

2. Electronic Refund Launch Date and Method

Effective February 6, 2026, the CBP has completely stopped issuing paper check refunds. Refunds are now issued electronically via ACH through the ACE system (previously required manual form submission and review; now can be done directly in the ACE system, significantly improving efficiency). This marks the official entry of the U.S. tariff refund process into the digital age. ACH electronic refunds are reportedly credited significantly faster than paper checks. In most cases, funds are credited within 1-2 business days after the CBP releases the refund. This method also avoids risks such as lost checks and mailing delays, balancing efficiency and security.

3. Two Operational Paths for Companies (Choose One)

Path 1: Self-manage ACE Account, Receive Refund Directly

Advantage: Full control over funds rests with the company itself, eliminating reliance on third parties.

Considerations: Ensure the registered email address on CBP Form 5106 (Importer ID Input Record) is valid and can be verified within the system's 10-minute validity period. Bank account information must exactly match the registered information; otherwise, the refund process will be hindered. Currently, only the ACE account owner can authorize ACH refunds; the CBP plans to add a delegated authority function later, but it is not yet available.

Path 2: Authorize Customs Broker to Receive Refund on Behalf

Advantage: Convenient operation, avoids potential internal IT issues or system errors within the company, saving labor costs.

Considerations: CBP Form 4811 (Power of Attorney) must be signed, clearly defining the rights and responsibilities of both parties. It is also necessary to ensure transparency in the broker's trust account and establish a clear reconciliation mechanism to avoid fund disputes. Refunds via this path are currently still being issued as paper checks but will gradually be integrated into the electronic refund system.

(Note: The final sentence about vehicle inspection electronic markers in the original text appears unrelated and has been omitted from the translation for clarity and relevance.)

The U.S. government has not yet released a complete refund implementation guide. Companies need to focus on three key questions: whether an active application needs to be submitted, if there is a time limit for applying for refunds, and whether future legislation might re-establish relevant tariff structures through other legal provisions. Furthermore, if a large number of companies apply for refunds simultaneously, it could lead to ACE system delays and tighter auditing standards. It is recommended that companies plan their actions early.

 

 

Immediately verify ACE account and ACH authorization status, complete relevant registrations or authorizations to avoid impacting refund disbursement; simultaneously assess the potential refund amount eligible to your company and prepare relevant supporting documents in advance.

Review your imported product classifications to confirm eligibility for Section 122 tariff exemptions (especially goods covered by Section 232 tariffs), accurately calculate the latest tariff costs, and optimize procurement and pricing strategies.

Continuously monitor policy developments, focusing on the follow-up implementation details for refunds, potential adjustments upon the expiration of the Section 122 tariffs, and any new industry-specific tariffs the U.S. government might add. Develop contingency plans in advance to mitigate risks associated with policy changes.

 

 

This policy adjustment marks the entry of U.S. trade and tariff policies into a new phase of "legal review + digital supervision." For importers, it is crucial to seize the refund opportunity and benefit from the cost advantages brought by the reduced tariff rates, while also ensuring robust compliance management and risk prevention. This balanced approach is key to navigating the ever-changing trade environment steadily.