ALEXANDRIA, Va.—During a June 15 webinar, The Vision Council reviewed the fast-moving tariff landscape for optical importers and urged its members to move quickly on refund claims tied to the now-invalidated tariffs that were issued under the International Emergency Economic Powers Act (IEEPA), as well as prepare for a possible wave of new duties later this summer. Rick Van Arnam, regulatory affairs counsel for The Vision Council, led the webinar, offering insight into the refund process, the potential government appeal, updates on Section 122 duties and the looming Section 301 duties expected to be enacted in July.
Van Arnam told attendees that the latest developments create both opportunity and risk. “What we hope to accomplish today is to tell you what you should be doing now and what you need to be doing to protect your interests,” he said, referring to the refund process for entries affected by the IEEPA tariffs.
The webinar first focused on the new U.S. Customs and Border Protection (CBP) refund mechanism known as CAPE, or Consolidated Administration and Processing of Entries, which went into effect on April 20. Van Arnam explained that importers need an Automated Commercial Environment (ACE) account, an importer subaccount and electronic refund capability to file. “The government is not going to do this for you,” he said, noting that claims must be prepared and submitted by importers or their customs brokers.
Rick Van Arnam.
As previously reported by VMAIL, this refund process rollout follows the February 20 Supreme Court opinion ruling that the President does not have the power to impose tariffs under IEEPA. On March 4, Judge Eaton of the U.S. Court of International Trade (CIT) directed CBP to liquidate unliquidated entries “without regard to the IEEPA duties” and to reliquidate entries for which liquidation was not yet final, beginning the refund process for an estimated $200 billion in collected duties.
Van Arnam stressed in the webinar that the key issue remains to be the timing of the liquidation. “Everything will turn on the liquidation date,” said Van Arnam, explaining that CAPE currently covers unliquidated entries and entries liquidated within 80 days of filing. That 80-day cutoff, he said, gives CBP a 10-day cushion before the 90-day point after liquidation when it loses authority to change an entry.
For entries outside CAPE, he recommended a “belt-and-suspenders” approach, backed with precaution. For entries liquidated after the Supreme Court decision but not eligible for CAPE, importers should file administrative protests. “By filing a protest, you keep the liquidation alive,” he said. For entries liquidated before the Supreme Court ruling, he advised filing a case at the U.S. Court of International Trade to preserve claims.
He also warned importers to monitor claims already submitted through CAPE. “Just because you put claims into the CAPE … every day that passes, is another day that you get closer to liquidation,” he said. If refunds are delayed too long, protests may still be needed to prevent claims from timing out.
During the webinar, The Vision Council also focused on the government’s appeal of the court ruling that struck down the IEEPA tariffs. Van Arnam said the appeal could slow refunds on entries that cannot be processed through CAPE. “The government may very well think by filing an appeal and taking a year or two to do this, they’re going to run out the clock on a lot of folks,” he said.
He urged companies to communicate carefully with customers before passing along refunds. “Take a beat. The refund process may take a long time,” he said. “If you do pass on your refunds to your customers, remember to prorate any costs you incurred getting the refunds.”
The webinar also covered the separate 10 percent Section 122 tariff, which Van Arnam said is set to expire in late July unless Congress acts. “No reason to react right now,” he said, but added that importers should still protect potential refund rights. He said the issue is likely to move through the courts for some time.
Looking ahead, Van Arnam said new Section 301 duties could soon replace some of the tariff burden. He described ongoing investigations tied to forced labor and structural excess capacity and said, “We should expect that these economies are engaged in structural excess capacity and that the use of additional tariffs is needed.”
He also flagged possible new Section 232 tariffs on medical devices and related products, calling that one of the developments optical companies should watch most closely.
The presentation ended with a brief status update on the United States-Mexico-Canada Agreement or USMCA, which is up for review on July 1. Van Arnam said the U.S. may not sign off on an extension, but likely will trigger annual reviews instead. “Those of you who are heavily involved in USMCA traffic and production, you’ll want to keep your eye on what’s going on here,” he said.
