Tariff Refund Claims and the Anti-Assignment of Claims Act

Visit our Tariff Watch resource center to track the latest legal and regulatory developments, recovery strategies, and potential shifts in U.S. trade policy following the Supreme Court’s tariff decision.

The Assignment of Claims Act of 1940, also known as the Anti-Assignment Act, has its origins in an earlier act from the 19th century and was designed to “alleviate the government from the burden of determining with whom it must deal.” Diamond v. Fed. Emergency Mgmt. Agency, 689 F. Supp. 163, 167 (E.D.N.Y. 1988). The Act defines “assignment” broadly, to include “a transfer or assignment of any part of a claim against the United States Government or of an interest in the claim,” as well as “the authorization to receive payment for any part of the claim.” 31 U.S.C. § 3727(a)(1)-(2). It imposes certain requirements for the federal government to recognize the assignment of claims against the government.

Given the broad text, some questions have been raised regarding how the Act may apply to those investing in tariff refunds. The answer to that question requires a detailed legal analysis of the history and precedent which has limited the application of the Act, who may enforce it and when. It also requires an examination of the applicable regulations and whether they waive the Act under certain conditions.

We are happy to advise on those subjects if you have any concerns about the application of the Act to your circumstances.