Since the Supreme Court’s February ruling striking down tariffs issued under the International Emergency Economic Powers Act of 1977 (IEEPA), importers of record who have paid tariffs under IEEPA have been navigating the road to refunds.
Soon after the Supreme Court’s ruling, the Court of International Trade (CIT) ordered U.S. Customs and Border Protection (CBP) to establish a refund system and process. CBP did so, and the Consolidated Administration and Processing of Entries (CAPE) portal went live around April. But CAPE only addresses unliquidated — meaning non-finalized — IEEPA tariff payments. In court filings, CBP has argued that a court order is needed to address refunds for each finally liquidated — or finalized — IEEPA tariff payments made by importers.
In the current lead refund case, the CIT has set a response deadline and scheduled a status conference that may clarify the next steps in the process.
In the meantime, the CIT has begun entering orders in the more than 3,700 cases pending before filed by importers seeking refunds. At least some of those orders require CBP to reliquidate fully liquidated entries and process refunds accordingly.
Given these developments, importers of record with fully liquidated entries involving IEEPA tariffs should consider filing suit now, as doing so may be the quickest and most efficient way to obtain refunds from the fully liquidated entries.
Our automotive, supply chain and trade lawyers are actively monitoring these developments, have filed litigation in the CIT seeking refunds and are standing by to help clients evaluate refund and reimbursement options.
