7 Steps for Gov't Contractors in Post-IEEPA Tariff Landscape

Government contracts attorneys Anne Delmare and Amy Fuentes and litigation attorney Ashley Akers co-authored a Law360 article providing a guide for federal contractors on preserving tariff refund rights, assessing potential repayment obligations to the government and addressing the next wave of duties. Following the U.S. Supreme Court's decision invalidating tariffs imposed under the International Emergency Economic Powers Act (IEEPA), many contractors found themselves questioning how to obtain a refund for payments previously made and what remedies could be available to recoup costs. As the attorneys explain, only importers of record have the right to seek a refund, so companies should act promptly to identify deadlines, file lawsuits to establish entitlement to reimbursement and review supply chain contracts to identify other rights and remedies. The article goes on to address planning for future tariffs, as the Trump Administration has already instituted a 10 percent global import surcharge under Section 122 of the Trade Act of 1974 as well as initiated investigations under Section 301 of the same law to eventually supplant the Section 122 measures. It concludes by listing steps that include mapping tariff costs to specific contracts, performing clause-by-clause risk assessments, documenting communication with suppliers, and incorporating tariff allocation and refund-sharing provisions into agreements, all of which can aid organizations in dealing with compressed timelines for action and mitigating trade compliance exposure points in the months ahead.

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