Trade Advisory Update: CIT Acceptance of CBP Process for IEEPA Tariff Refunds

Recent Update

CIT Acceptance of CBP Refund Framework

On March 6, 2026, CBP advised the Court that immediate, entry-by-entry implementation of refunds and reliquidations was not operationally feasible due to the unprecedented number of affected entries and limitations within CBP’s existing systems. In response, the CIT agreed to pause immediate refund execution and allow CBP to proceed with a structured implementation approach.

As part of that process, the Court accepted CBP’s proposed seven-step, ACE-based refund framework as the procedural path forward. This acceptance relates to how refunds will be administered, not whether IEEPA tariffs are unlawful. The Court’s substantive ruling remains unchanged.

Overview of CBP’s Proposed 7-Step Process

CBP’s framework is designed to manage refunds at scale by:

1. Requiring importers to file a declaration in CBP’s Automated Commercial Environment (ACE) identifying entries on which IEEPA duties were paid;
2. Validating those entries within ACE;
3. Automatically recalculating duties and applicable interest without IEEPA tariffs;
4. Liquidating or reliquidating affected entries as appropriate;
5. Aggregating refund amounts at the importer level, rather than issuing millions of entry-specific refunds;
6. Certifying refunds within CBP; and
7. Issuing electronic refunds through the U.S. Department of the Treasury.

CBP has indicated it is targeting approximately 45 days to deploy the necessary system functionality, though timing may evolve.

What This Means for Importers

The legal entitlement to removal of IEEPA tariffs on unliquidated and non-final entries remains intact. However, refunds will be processed through a staged, system-driven approach rather than immediately. Importers should expect that participation in the ACE-based declaration process will be required and that electronic refund enrollment is mandatory.

Recommended Importer Considerations

Importers may wish to identify entries impacted by IEEPA tariffs, confirm liquidation status, ensure electronic refund setup with CBP is complete, and coordinate with customs brokers and advisors to prepare for ACE filings and monitor further guidance.

Looking Ahead

The focus has now shifted from the legal question of whether the tariffs were valid to the practical steps needed to carry out refunds. While the Court has accepted CBP’s seven-step framework as the path forward, CBP has indicated that refunds will begin only after formal guidance is issued and the necessary system updates are in place. For now, importers should wait for CBP’s official instructions before submitting any claims and use this time to prepare, so they are ready to act promptly once the process is formally launched.

This advisory is provided for general informational purposes only and does not constitute legal advice.

Need support navigating this development?

Importers with questions about the IEEPA tariff refund process or who require assistance preparing ACE declarations are encouraged to contact our Tariff Response Unit. Early preparation will help ensure timely and accurate participation once the process is formally launched.