Key Takeaways:
- The U.S. Court of International Trade has ordered U.S. Customs and Border Protection to begin refunding IEEPA tariffs to importers.
- The court stated all importers of record are entitled to benefit from the Supreme Court’s IEEPA tariffs decision.
- Importers may not need to file court actions, but should continue to protect their interests with timely filed protests while the refund process unfolds.
On March 4, Judge Richard Eaton of the U.S. Court of International Trade (CIT) issued an order directing U.S. Customs and Border Protection (CBP) to refund duties imposed under the International Emergency Economic Powers Act (IEEPA) that were recently declared invalid by the U.S. Supreme Court in Learning Resources, Inc. v. Trump. The CIT’s order requires CBP to liquidate or reliquidate affected entries by removing the IEEPA duties and applies broadly to all unliquidated entries subject to those duties, as well as to liquidated entries for which liquidation is not yet final.
As a result of the CIT’s ruling, importers are presumably entitled to refunds of IEEPA duties previously assessed on covered entries, although the ruling did not mention interest. By law, CBP is required to pay interest on any refunds of excessive duties pursuant to 19 U.S.C. § 1505(b)-(c) and the implementing regulations at 19 C.F.R. § 24.36. This interest obligation applies regardless of whether the refund is issued through liquidation, reliquidation or protest.
Importers should be aware that CBP’s electronic systems may require updates before IEEPA duties can be removed from affected entries. If CBP liquidates an entry without automatically refunding IEEPA duties or interest, importers should consider filing a timely protest to preserve and secure the amounts owed.
At this time, there is no indication that additional court action is necessary. The CIT’s order is clear in scope and applies to all relevant entries for importers that have or have not filed suit, providing a direct administrative path for refunds through CBP to eligible importers.
Importers should closely monitor CBP guidance and communications regarding the implementation of the CIT’s order, review their entry records to identify affected transactions, and coordinate with their customs brokers or legal counsel to prepare any necessary protests until full refunds have been issued. Importers also should confirm that any refunds issued by CBP include the appropriate statutory interest.
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