On August 29, 2025, the Court of Appeals for the Federal Circuit (CAFC) had ruled that the International Emergency Economic Powers Act (IEEPA) does not grant the President the authority to impose specific import tariffs. The case is under review by the Supreme Court, however, the IEEPA duties remain in effect for now.
This situation raised many questions related to potential IEEPA refunds, and what importers should do to protect their refunds if the Supreme Court upholds the CAFC’s decision. Trade attorneys provided guidance ranging from filing protective protests, filing an injunction against liquidation before these entries liquidate to filing a lawsuit with the Court of international Trade (CIT).
On December 15th, the CIT denied a motion for an injunction stopping liquidation of entries from a group of importers that filed challenges to IEEPA.
Judges Gary Katzmann, Timothy Reif and Jane Restani held that an injunction is unnecessary because the trade court has the authority to reliquidate finally liquidated entries from the importers that filed suit under the court’s 28 U.S.C. 1581(i) jurisdiction if the Supreme Court invalidates the tariffs.
The judges also noted the government’s commitment that it won’t fight against CIT’s ability to order refunds, finding the U.S. is barred from changing its position in the future.
Following the CIT’s decision, trade attorneys are issuing somewhat varied opinions on what importers should do now to protect their potential refunds.
We recommend consulting with a trade attorney to determine your company’s best course of action.
We continue to advise importers to monitor transactions and liquidation status where the IEEPA duties have been paid, as well as the amount of IEEPA duties paid.
Please note that Post Summary Correction (PSC) filings cannot currently be submitted for unliquidated entries that remove IEEPA tariffs. However, this may change in the future if the Supreme Court upholds the CAFC ruling. We have also been notified that CBP will not be accepting extension of liquidation requests.
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.
