PH exporters don’t expect US tariff refunds

A woman washes the harvest banana from the farm to their plantation as they process it for packaging at the private company banana plantation in Tagum City, Davao Del Norte. —INQUIRER FILE PHOTO

Philippine exporters are tempering expectations of recovering tariff payments from the United States, citing continued uncertainty over Washington’s position even as a formal mechanism to process refunds has been put in place.

In an interview with the Inquirer, Philippine Exporters Confederation Inc. president Sergio Ortiz-Luis Jr. said that members remain unsure whether the refunds would even apply to shipments from the Philippines.

“I can’t understand it because the US is saying that we had agreed to the 19-percent tariff. That was based on a negotiation; we signed it,” Ortiz-Luis said in Filipino. “So, whatever the Supreme Court said, that is the rate that they can charge us.”

These refunds follow a 6-3 ruling by the US Supreme Court in February, which struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA) for lacking congressional approval.

Refunds will be processed through the Consolidated Administration and Processing of Entries system.

An estimated $166 billion in tariffs could be refunded following the ruling, according to a report by The New York Times. These are expected to be released in phases, beginning around May 11.

While Philippine exporters initially welcomed the court ruling, Ortiz-Luis said that expectations have since cooled following fresh tariff moves by Washington, including a 15-percent levy imposed by US President Donald Trump.

He said that of prospects for the refunds, adding that tariff treatment for key Philippine exports, such as semiconductors, electronics and agricultural products, remains unclear.

Still, government advisories and logistics firms suggest the refund process is beginning to move.

In an April 24 advisory, the Department of Trade and Industry’s Export Marketing Bureau said exporters must “coordinate closely with their US importers” to determine whether their shipments fall under the IEEPA ruling and to agree on how any refunds would be shared.

Only the US importer of record or an authorized customs broker that filed the entry may apply for the refund, the bureau said.

For the first quarter, exports reached $22.7 billion, up 12.7 percent year-on-year.