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   Message 119,136 of 120,746   
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   Costco sues over Trump's tariffs in a bi   
   14 Dec 25 03:58:10   
   
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   From: webermark@polaris.net   
      
   Costco sues over Trump's tariffs in a bid to secure a refund   
   By Katherine Li   
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   Shopping carts are seen at the Costco store ahead of Black Friday in   
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   Costco filed a lawsuit to recover tariff payments imposed by the Trump   
   administration.   
   The retailer challenged tariffs enacted under the International Emergency   
   Economic Powers Act.   
   Costco is seeking a full refund of duties paid.   
      
   Costco is suing the government to recover tariff money.   
      
   The wholesale retailer has filed a lawsuit against the United States, the   
   US Customs and Border Protection agency, and Rodney S. Scott, the   
   Commissioner of US Customs and Border Protection.   
      
   The suit asks the US Court of International Trade to strike down tariffs   
   imposed by President Donald Trump by executive order under the   
   International Emergency Economic Powers Act, and to ensure tariff refunds   
   for businesses that paid import duties.   
      
   In a complaint submitted Friday, November 28, the retailer said it is   
   seeking a "full refund" of duties it paid after Trump used the emergency-   
   powers law to levy what he described as "reciprocal" tariffs.   
      
   The complaint cited a previous lawsuit, VOS Selections, Inc. vs. Trump,   
   filed against the Trump administration, for which the US Supreme Court   
   heard arguments in early November.   
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   "This separate action is necessary, however, because even if the IEEPA   
   duties and underlying executive orders are held unlawful by the Supreme   
   Court, importers that have paid IEEPA duties, including Plaintiff, are not   
   guaranteed a refund for those unlawfully collected tariffs in the absence   
   of their own judgment and judicial relief, " the complaint reads.   
      
   The complaint highlights a process called liquidation, which is when   
   customs completes its final review and determines the official amount of   
   duty for a particular shipment. Liquidation typically provides Customs and   
   Border Protection with the opportunity to either refund the importer or   
   demand additional duties to be paid. This process must be completed within   
   one year of a shipment's entry unless it is extended at the discretion of   
   the CBP. It is unknown if a refund could happen once liquidation is over.   
      
   According to the complaint, tariffs on Costco's imports will begin to be   
   liquidated as early as December 15, and the CBP has already declined the   
   company's request to extend the liquidation.   
      
   "Plaintiff seeks relief from the impending liquidations to ensure that its   
   right to a complete refund is not jeopardized, " the complaint reads.   
      
   The Court of International Trade and the District Court for the District of   
   Columbia have both ruled the IEEPA tariffs illegal on separate occasions.   
   Their rulings are mostly based on the Constitution, which says that   
   Congress has the exclusive power to levy taxes and collect duties. The   
   Court of Appeals for the Federal Circuit reaffirmed the CTI's decision in   
   August.   
      
   The use of the IEEPA for tariffs eventually made its way to the Supreme   
   Court, and the court is currently deliberating.   
      
   Costco did not specify the amount of duties it has paid in the complaint.   
   Treasury Secretary Scott Bessent said in a filing submitted to SCOTUS in   
   September that the government could end up owing $1 trillion in tariffs   
   should the court rule against the Trump administration.   
      
   Earlier this year, Costco's CEO, Ron Vachris, said during a Q2 earnings   
   call, "About a third of our sales in the US are imported from other   
   countries, and less than half of those are items coming from China, Mexico,   
   and Canada. " This was before Trump's April 2 "Liberation Day" tariffs.   
      
   Costco, the White House, and the US Customs and Border Protection agency   
   did not immediately respond to requests for comment.   
      
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