HIGH POINT – At least nine home-related companies have turned to the U.S. Court of International Trade seeking refunds for tariffs they say were unlawfully collected by U.S. Customs and Border Protection, escalating a legal fight that could have broad implications for companies that rely on global sourcing.
The complaints, filed separately with the court, argue that tariffs imposed under the 1977 International Emergency Economic Powers Act were unconstitutional and therefore illegally collected from importers.
Four retailers, two rug companies, two textiles suppliers and one furniture manufacturer have sued the CBP seeking refunds for tariffs paid on goods brought into the U.S. Companies that have filed complaints are: City Furniture, Dania Inc. (Scandinavian Designs), American Furniture Warehouse, Global Home Imports, Rugs America, Jaipur Living, Culp Inc., Standard Textiles and Flexsteel. The complaints were filed as early as Feb. 20 (Rugs America) and as recent as Wednesday, March 4 (Flexsteel).
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Multiple courts – culminating with the U.S. Supreme Court ruling Feb. 20 – have determined that IEEPA does not authorize the President to impose tariffs. This week, a judge in the U.S. Court of International Trade said companies that paid tariffs are due refunds.
Companies ranging from importers of technology to sports apparel and sneakers to suppliers of baby wipes and coffee filters are asking the trade court to order refunds of the tariffs they paid on goods brought into the U.S.
Iv Culp, CEO of Culp Inc., said the company is taking a “belt and suspenders” approach with its complaint against the U.S. CBP and commissioner Rodney S. Scott. Culp said he is confident the federal trade court judge’s ruling this week should drive the government to begin a process to issue refunds to importers that paid IEEPA tariffs, and the filing is an additional step to position the company to realize any refunds.
“We are following this situation closely, and we have been diligent in filing protests on entries including IEEPA tariffs that we paid,” he said. “We felt that filing a claim in the international trade court was a further proactive measure that was in our best interest given the potential refund situation.
“Like pretty much everyone in the home furnishings industry, we were penalized by the fluid manner in which tariffs were imposed and the changes that followed, and we look forward to reimbursement offsetting some of the losses caused by these tariffs. We now have adjusted pricing in place to better neutralize tariff costs going forward as they are today.”
Executives from Jaipur Living declined to comment on the filing, and Flexsteel executives had no comment at this time. Furniture Today has reached out to the other six companies that have filed complaints for comment.
