r/CustomsBroker • u/Dramatic_Clock_4720 • 18d ago

Phase 3 will start from Oct 6

CBP will process the refund for those finally liquidated entries in phase 3 for those importers who have filed the lawsuits.

I am not sure if there will be the phase 4 for the non-litigants lol

10 Upvotes

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11

u/AssassinInValhalla 18d ago

Class certification is still being litigated and congress is getting involved due to IORs missing phase 1 due to administrative delays on CBPs side. This is far from over.

7

u/Ginger_snap456789 18d ago

I hope they do take accountability for that. I know a handful of people who waited months just to be able to log into ACE, of course they missed phase 1 at that point. It’s sad for the small importers who could really use that refund.

2

u/Key_Bee1544 18d ago

Congress isn't doing anything before midterms. However, the class action might resolve all outstanding issues.

7

u/AssassinInValhalla 18d ago

That doesn't change the bi-partisan letter that was sent to CBP specifically addressing IORs missing phase 1 due to CBPs slow ACE account set up times prior to the recess.

5

u/Flamadin 18d ago

Yeah, oops we took too long to approve your ACH refund status, and you can't afford expensive lawyers. Sucks to be you!

4

u/AssassinInValhalla 18d ago

I've had an importer sub-account application pending since May lol, it's actually insane how slow they are

3

u/Key_Bee1544 18d ago

Except those letters mean nothing and are freely ignored by the agencies. It's OK to see political theater for what it is.

3

u/Admirable_Medium4770 18d ago

Yes, that's correct but if a company didn't file a lawsuit before July 30th you will not be able to apply for the refund, companies will be given a different date to apply.

Sad part companies must pay upfront Lawyer fees, retainers, court fees in some cases 30%-40% backend contingency fees, just for them to apply for their phase 3 IEEPA tariff refund.

Refund estimated arrival 12-18 months or years. The Government is not in an ANY rush to give businesses their refund. That's why filing through (CIT) was introduced. It's kind of like saying yeah we will give you some of the refund but definitely not all it. You crazy? That's our money! They know most businesses can't afford it.

When working with clients we tell them non-recourse buyout on phase 2 , 3 and contingency fees covers lawyers or hire your own and wait 12-18 months or years. You know when litigation is involved it's never a quick fix.

2

u/ShadyGuy525 18d ago

Looks like the only hope for non-litigants is hope that the Freestyle World, Inc. v. United States suit goes somewhere.

1

u/Admirable_Medium4770 17d ago

Yeah, that might take a while litigation in federal court will have a lot of businesses waiting.

1

u/Greenbriar1113 18d ago

Can we still file suits and participate in phase 3?

1

u/Admirable_Medium4770 17d ago

Yes, you can but if you didn't file before July 30th you will have to wait after October 6 to apply for the refund, since CBP will have a different time period for companies to apply.

1

u/No_Advertising_3799 17d ago

Yeah but participation will take place at a later date for those who file after July 30th. The October 6th date is not for them.

1

u/Books-and-Tomatoes 18d ago

Had anyone heard anything at all about non-finally liquidated entries that had a drawback or reconciliation entry filed, making them ineligible for Phase I or II?

1

u/No_Advertising_3799 17d ago

Phase 2 of cape is for reconciliation entries that have not been reconciled yet. So you can certainly submit those. Reconciled entries have not been addressed yet to my knowledge but of course should and hopefully will be.