| IEEPA Refund Developments |
| Client Alert — March 2, 2026 |
We are providing an update on obtaining IEEPA tariff refunds that follows our February 21, 2026 client alert concerning the Supreme Court decision. Since that alert, various importers have attempted to file Post Summary Corrections (PSCs) for unliquidated entries, and the U.S. Customs and Border Protection (CBP) has rejected those PSCs because the Automated Commercial Environment (ACE) system is not yet coded to accept entries without IEEPA tariffs on past‑dated entries. Additionally, FedEx and other parties have filed new cases at the U.S. Court of International Trade (CIT) seeking IEEPA refunds. Separately, on March 2, 2026, the Court of Appeals for the Federal Circuit ordered that its mandate issue, over the government’s objections, returning the original Learning Resources and VOS Selections cases to the CIT so that the CIT can address refund‑related issues without further stay. These developments could mean that the CIT might issue refund‑related orders that: (1) apply only to the parties in the Supreme Court cases (Learning Resources and VOS Selections); (2) extend to all cases filed at the CIT before the Supreme Court’s decision; (3) cover all cases currently filed at the CIT; or (4) reach all parties that paid IEEPA tariffs, whether or not they have filed for relief at the CIT. These outcomes remain uncertain and will depend on how the CIT chooses to implement the Supreme Court’s decision and the Federal Circuit’s mandates. These developments leave us with three options: Unliquidated entries (PSC route) For entries that have not yet liquidated, one option is to wait for CBP to code the ACE system so that it can accept PSCs seeking IEEPA tariff refunds. Importers and their brokers should identify unliquidated entries with IEEPA duties now so that PSCs can be filed promptly once ACE is updated. Liquidated entries (protest and litigation route) After liquidation, refund claims shift to protests. Importers generally have 180 days from liquidation or reliquidation to file. CBP generally has up to two years to decide a protest, unless the disposition is accelerated. If CBP denies a protest, importers may then challenge that denial at the CIT. Litigate both unliquidated and liquidated entries at the CIT now A third option is to follow the approach taken in the FedEx case and file suit now at the CIT for both unliquidated and liquidated entries. The FedEx case does not provide a guarantee of refunds. The CIT might determine that some claims are premature and that the administration should have an opportunity to issue refunds on its own, or it might order refunds or reliquidations in the Learning Resources and VOS Selections cases. There are reports that the government might seek to limit or delay full refunds, which further increases the strategic value of being in the group of active CIT plaintiffs. This litigation option does not foreclose the PSC or protest routes and could, from a strategic perspective, be the safest way to preserve rights and position importers for earlier relief. Additionally, because we do not expect those cases to be fully litigated and instead anticipate that they would be subject to the same ruling as the lead case(s), the likely litigation costs might justify taking the most conservative approach. Practical next steps We can help you evaluate your circumstances and work with your customs brokers, or with ours, to identify affected entries; prepare to file PSCs when the ACE system is ready; file protests for liquidated entries; and pursue cases at the CIT where appropriate. |
