IEEPA Tariff Refund Litigation Update

Overview

Recent developments before the U.S. Court of International Trade (CIT) continue to impact the timing, scope, and eligibility of refunds associated with tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Although the Court has issued an injunction directing refunds, implementation remains partially stayed and contested by the U.S. government.

Key Takeaways for Importers

1. Refunds in Progress for Unliquidated Entries Customs and Border Protection (CBP) is actively processing refunds for unliquidated or non-final entries that remain under CBP control. These refunds represent a significant portion of eligible duties and are expected to continue as additional claims are filed and processed.
2. Final Entries Dependent on Litigation For entries that have been finally liquidated and are subject to ongoing litigation, refunds will require court-ordered reliquidation. Implementation will depend on court outcomes and CBP’s system capabilities.
3. Non-Litigated Entries Face Uncertainty The government has challenged the Court’s broader attempt to mandate refunds for all importers, arguing that such relief exceeds the Court’s jurisdiction. Importers that have not initiated litigation may face increased risk of exclusion from potential refunds.
4. Operational Constraints CBP has indicated that full compliance with the Court’s order is not immediately feasible due to system limitations. Refund processing is expected to occur in phases through ongoing system enhancements.
5. Upcoming Developments A hearing is scheduled for June 9, 2026 to determine whether the stay on the injunction should be lifted. The government has indicated its intent to appeal and pursue additional legal remedies.

Strategic Considerations

• Near-term refunds are likely limited to unliquidated entries
• Final entries may experience delays and require further litigation
• Eligibility for refunds may depend on legal participation
• Financial planning should account for uncertainty and phased recovery

Recommended Actions

• Segment entries (unliquidated vs. final vs. litigated)
• Evaluate need for protective litigation strategies
• Confirm that refund claims are filed and documented
• Adjust cash flow forecasts to reflect timing uncertainty
• Monitor ongoing litigation developments

Disclaimer

This advisory is provided for informational purposes only and does not constitute legal advice. Importers should consult legal counsel to evaluate specific facts, risks, and strategies.

If your organization may be impacted by IEEPA tariff refund developments, our Trade Consulting team is available to support you. We can assist with entry segmentation analysis, refund eligibility assessments, documentation reviews, and evaluation of potential litigation strategies. Our team also provides guidance on cash flow planning, claim validation, and coordination with counsel to help navigate evolving court decisions and CBP implementation constraints. Contact Crane Trade Services to assess your refund position and prepare for next steps as the litigation process continues.