Refund framework may move forward despite anticipated government challenge.
The U.S. Court of International Trade (CIT) issued an order on March 4, directing Customs and Border Protection (CBP) to liquidate all unliquidated entries without IEEPA based duties and to reliquidate any entries already liquidated but not yet final (within 90 days of initial liquidation). An appeal is anticipated, given concerns over the order’s procedural deficiencies and its broad, universal application.
CIT Judge Richard K. Eaton, who will oversee all related cases, scheduled a non public conference for Friday, March 6 to address next steps, including the structure of a potential refund process. Judge Eaton emphasized that refunds should be administered through CBP’s standard procedures and that importers should not be required to file additional lawsuits to obtain them. We expect to learn more in the upcoming days, but as of today, no refunds are being processed by CBP.
This order follows the March 2 U.S. Court of Appeals for the Federal Circuit (CAFC) action granting plaintiffs’ request, including Vintners Overseas Shipping Selections (V.O.S.), to immediately return the matter to the CIT for proceedings on final relief, which is expected to include refunds of IEEPA related tariffs.
The Department of Justice argued that importers should still be required to file suit to recover refunds for previously liquidated entries. However, it is unclear whether this position applies to liquidation or final liquidation. DOJ also moved to suspend the CIT order, which Judge Eaton denied.
This development comes in the wake of the Feb. 20 Supreme Court ruling invalidating the Administration’s use of IEEPA tariffs. The situation remains fluid, and additional challenges to the scope and validity of yesterday’s order are likely.
Deringer will continue to monitor CIT’s actions and other developments.
In view of these events, we urge you to sign up for electronic refunds as soon as possible, and consult with a Customs Attorney.
Deringer Customers: Get Started with Electronic Refunds Here
To let us know how we may best assist you, please complete our client form for IEEPA protests and electronic refunds. Go to the Form
Due to the rapidly changing application and modifications of duty rates, please note that Deringer is not responsible for coordinating the timing of U.S. entry and imposed tariff rates.
