US trade court orders tariff refunds in setback for Trump administration - BBC

The US Court of International Trade (CIT) has ordered the US government to refund tariffs collected on certain solar products, marking a significant legal setback for trade policies implemented by both the Trump and Biden administrations. This ruling mandates the return of duties deemed unlawfully imposed, impacting importers within the solar industry.

The court's decision specifically addresses "safeguard" duties initially imposed under Section 201 of the Trade Act of 1974 on imported solar cells and modules, which began in 2018. A key point of contention was the treatment of bifacial solar panels—panels capable of generating electricity from both sides. The Trump administration initially exempted these panels from tariffs in 2019, but then revoked that exemption in October 2020. The CIT ruled that this revocation was unlawful. Furthermore, the court found that the Biden administration's subsequent increase of the Section 201 tariff rate from 15% to 18% in February 2022 also exceeded statutory authority and was therefore unlawful.

This ruling directly affects importers of bifacial solar panels who paid duties after the October 2020 revocation of their exemption. It also impacts importers of solar cells and modules who paid duties at the increased 18% rate after February 2022. The decision is particularly relevant for solar companies and trade compliance professionals managing imports of these specific products, as it clarifies the legal standing of these past tariff actions.

As a direct consequence of the court's order, importers who paid these unlawfully imposed duties are now eligible for refunds. While the specific process for claiming these refunds was not detailed in the court's order as reported, affected importers should review their import records for entries made during the specified periods to determine their eligibility for reimbursement.