US court orders CBP to refund IEEPA tariffs on import entries

A major development in U.S. trade policy has emerged after the United States Court of International Trade (CIT) directed U.S. Customs and Border Protection (CBP) to liquidate import entries without applying tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The ruling effectively opens the door for widespread refunds of duties previously collected under the emergency powers law.

In its order issued on March 4, the court instructed CBP to liquidate all unliquidated entries without assessing IEEPA duties. The ruling also requires the agency to re-liquidate any entries where liquidation has occurred but is not yet final, again without including the IEEPA tariff component. For importers, this means duties paid under the contested tariffs could be refunded if the entries fall within the eligible liquidation window.

The court further clarified that the order is universal and not limited to the plaintiffs involved in the case. According to the CIT, its decision is not constrained by the precedent set in Trump v. Casa, Inc., the Supreme Court of the United States ruling that restricted the use of universal injunctions. By distinguishing its order from that ruling, the CIT signalled that the directive should apply broadly across all relevant import entries.

Despite the court’s directive, CBP has indicated that refunds may not be immediate. During a question-and-answer session with stakeholders, the agency noted that it will first conduct reviews to ensure compliance with other customs laws and verify that no additional duties, taxes, or fees remain outstanding. These could include tariffs imposed under Section 301 Tariffs, Section 232 Tariffs, anti-dumping duties, or other applicable trade measures. As a result, industry observers believe the refund process could take time as CBP completes these checks.

The parties involved in the litigation have also been instructed to attend a closed hearing on March 6, which may provide further clarity on implementation and next steps.

The court order follows a broader shift in U.S. tariff policy after the Supreme Court of the United States ruled in February that IEEPA does not clearly authorize the imposition of tariffs, despite allowing the president to regulate imports during national emergencies. The ruling struck down tariffs introduced during the administration of Donald Trump, which had targeted imports under emergency authorities.

Following the court decision, the administration moved to terminate IEEPA tariffs through an executive order and replace them with a temporary global tariff under Section 122. The new measure imposes a 10 percent duty on most imports starting February 24, although certain sectors such as energy products, critical minerals, and goods covered under regional trade agreements are excluded.

For businesses, the latest ruling could result in substantial duty recoveries, particularly for companies that imported goods during the period when IEEPA tariffs were in force. Trade advisers are urging importers to review their entries through the Automated Commercial Environment (ACE) portal, verify refund payment details, and file protests for entries nearing the final liquidation deadline to preserve eligibility for refunds.

Industry analysts note that the outcome could have significant implications for global supply chains, as companies reassess tariff liabilities and compliance requirements while awaiting further guidance from CBP.