U.S. IEEPA Tariffs – Status On Refund Implementation

Dear Clients,

Many European companies exporting goods to the United States have been affected by tariffs imposed under the International Emergency Economic Powers Act (IEEPA). These tariffs were applied to a broad range of imported products and, in many cases, increased the cost of goods entering the U.S. market. Even where European companies were not themselves the importer of record, the tariffs often had commercial consequences because they were paid by U.S. subsidiaries, distributors, or customers and frequently reflected in pricing, contractual arrangements, or supply chain decisions.

1. Background: Liquidation

When goods enter the U.S., importers pay an estimated duty upfront, and U.S. Customs and Border Protection (CBP) finalizes the entry and determines the exact duties owed in a process called liquidation. Many entries are liquidated around 314 days after filing without further review by CBP; but earlier liquidation is possible at any time. If an entry has not been liquidated or extended within one year after filing, it is deemed liquidated by operation of law.

2. Supreme Court ruling

In February 2026, the U.S. Supreme Court ruled that tariffs imposed under the IEEPA were not authorized under the statute. As a result, the tariffs are widely viewed as unlawful. While the Court invalidated the tariffs, it did not establish a mechanism for refunding duties already collected. Importantly, duties were collected because entries were processed and/or liquidated with the IEEPA tariffs applied, meaning importers have already paid the unlawful amounts.

3. Recent ruling by the U.S. Court of International Trade

On March 4, 2026, a judge of the U.S. Court of International Trade (CIT) ordered CBP to begin implementing the consequences of the Supreme Court’s decision. In particular, the court directed CBP to:

• liquidate unliquidated entries without applying the IEEPA tariffs, and
• reliquidate entries that have already been liquidated and remain within the 180-day statutory protest period, which begins on the date of liquidation.

These steps may result in refunds of duties previously paid, potentially including interest.

Immediately after the CIT order, the U.S. Department of Justice requested a temporary suspension to allow time for a potential appeal, but the court denied the motion. To date, no formal appeal has been filed. Instead, CBP has indicated that it cannot currently comply with the order but expects to have a system in place within approximately 45 days to process the large volume of refund requests, potentially signaling a willingness to implement the court’s mandate.

The court also did not resolve how refunds should be handled for entries that have already become final following liquidation and expiration of the protest deadline.

4. Potential paths to refunds and practical uncertainties

Although the recent rulings significantly strengthen the legal basis for refunds, the practical mechanism for obtaining refunds is still evolving.

In principle, the availability of refunds may depend on the liquidation status of individual entries:

• Unliquidated entries: The CIT has directed CBP to liquidate these entries without applying the IEEPA duties. This should result in refunds once liquidation occurs.
• Liquidated entries still within the 180-day protest period: The court’s order suggests that these entries should be reliquidated without the unlawful duties.
• Entries that are already final: For entries where liquidation is final and the protest period has expired, the availability of refunds remains uncertain and may depend on further litigation or additional court guidance.

In recent days, many importers have attempted to seek refunds through Post Summary Corrections or administrative protests. However, reports indicate that CBP has rejected these submissions and suspended protests relating to IEEPA tariff refunds, which has created additional uncertainty and may push more disputes into court.

As a result, it remains unclear whether refunds will ultimately be handled through individual administrative claims, centralized administrative action by CBP, or court-driven procedures.

5. Who may claim refunds

In principle, refunds are available to the importer of record listed on the customs entry.

For many European companies, this will be:

• the U.S. subsidiary acting as importer of record, or
• a U.S. distributor or customs broker importing on the company’s behalf.

The party listed as importer of record will typically control the refund claim and any related administrative or judicial proceedings. Companies should therefore confirm which entity appears as importer of record for affected entries.

6. Recommended actions for affected companies

Given the ongoing legal and administrative developments, companies that paid IEEPA tariffs should focus on assessing their exposure and taking concrete steps to preserve potential refund rights. In particular, affected companies should consider:

• Identifying all imports subject to the relevant tariff measures.
• Determining the importer of record for each affected entry.
• Checking the liquidation status of each entry, including whether entries remain unliquidated or are still within the statutory protest period.
• Compiling data on duties paid under the IEEPA tariffs.
• Ensuring registration with ACE (Automated Commercial Environment) and confirming that account and payment information are up to date so that any refunds processed by CBP can be received without administrative delay.
• Monitoring developments regarding the administrative refund process or litigation options.

In addition, companies with high exposure or significant volumes of affected imports may also want to evaluate protective measures, such as participation in ongoing litigation, to safeguard potential refund rights – especially since the government indicated in the past that it believes individual lawsuits are required for certain refunds.

7. Outlook

While recent court decisions have opened the door for refunds, the practical implementation of the refund process remains uncertain. CBP seems to be actively working on developing a system to process the refunds, and the CIT has ordered CBP to file a progress report with the court by March 12, 2026. Further guidance from CBP and potential additional court decisions are expected in the coming weeks as the CIT continues to oversee the establishment of procedures for administering refunds.

We will continue to monitor developments and provide updates as the refund framework becomes clearer.

If you have any questions on this topic or would like us to advise on potential tariff refund claims or related litigation strategies, please contact us.