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U.S. Department of Justice attorneys rebutted an argument that an auto parts company could become entitled for refunds on all tariffs for shipments that would've been eligible for the currently suspended de minimis exemption, according to a May 14 filing in the Court of International Trade.
Axle of Dearborn, which does business as Detroit Axle, argues in a lawsuit that de minimis' end is unlawful and wants the government to refund all tariffs collected as a result of its elimination. This is because the International Emergency Economic Powers Act — the 1977 law which was the focus of the Supreme Court’s February ruling striking down many of President Donald Trump's tariffs — did not give Trump the authority to eliminate the exemption, according to the company.
"Rescinding a tariff exemption is functionally identical not to a quota or an embargo, but to imposing a tariff–and Learning Resources holds that IEEPA does not authorize such revenue-raising measures," Detroit Axle said in an April 23 filing in the Axle of Dearborn, Inc. v. Department of Commerce case.
Before its removal in August via executive order, the de minimis exemption allowed imports of less than $800 to enter the U.S. duty and tax free, a key tool for e-commerce merchants to ship cost-effectively across borders.
