On August 29, the Court of Appeals for the Federal Circuit (CAFC) ruled that the International Emergency Economic Powers Act (IEEPA) does not grant the President the authority to impose specific import tariffs. Following this ruling, on September 9, the U.S. Supreme Court released an order that it will hear two pending cases (Learning Resources, Inc. et al. v. Trump, President of U.S., et al. (No. 24-1287) and Trump, President of U.S., et al. v. V.O.S. Selections, Inc., et al. (No. 25-250)) challenging the legality of the issuance of President Trump’s IEEPA tariffs. The deadline for filing briefs to the Supreme Court for these cases is October 30. For now, the IEEPA duties will remain in effect.

What does this mean for your company?

Unfortunately, this is uncharted territory, and we do not yet know the outcome of the IEEPA case.

Here are some options to consider:
• Monitor: It is crucial to track transactions and liquidation status where the IEEPA duties have been paid.
• Extension of Liquidation: A request to extend liquidation for affected entries can be submitted, but approval is not guaranteed. If CBP does not approve the extension and the entry liquidates, the next option is to file a protest.
• Protective Protest: If the entry has been liquidated, one option is to submit a formal protest against the liquidation to potentially preserve the right to a refund.
• File a lawsuit with the Court of International Trade (CIT): Importers can file legal action with the CIT to challenge the validity of the IEEPA tariffs.
• Take no action pending the Supreme Court Ruling: The case is now under expedited review by the Supreme Court, currently set to be heard the first week of November 2025. Importers can decide to wait and see if the Supreme Court upholds the CAFC ruling before determining a course of action.

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.

It is currently unclear whether refunds will be issued if importers do not take action on the affected entries in the event that the Supreme Court declares these tariffs illegal. We recommend consulting with a trade attorney to determine your company’s best course of action.

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.