The fight for $130 billion: CIT orders refund of struck-down IEEPA tariffs

In a decision published on Wednesday evening (March 4), the US Court of International Trade (CIT) ordered tariff refunds for all unliquidated and not-finally-liquidated entries subject to the now struck-down tariffs imposed under the International Economic Emergency Powers Act (IEEPA). 

The ruling came after an unsuccessful attempt by the White House to stall the decision for up to four months to allow the administration to weigh its options, and entails the repayment of over $130 billion in unlawfully collected tariffs.

IEEPA tariff refund requirements 

Judge Richard Eaton with the CIT ruled that all importers of record are entitled to the benefits of the February 20 US Supreme Court decision in Learning Resources v. Trump, which struck down IEEPA tariffs. This means that all unliquidated entries, as well as those whose liquidation has not been finalized, are entitled to a refund. 

Businesses can protest liquidation within 180 days (around six months) upon entry into the United States. This grants importers a one-year extension, which can be renewed for up to three years. 

Entries whose liquidation has not been finalized are also entitled to a refund, as per CIT ruling, but it is unclear whether businesses in this situation should protest an entry’s liquidation or appeal directly to the US Customs and Border Protection agency (CBP). 

In case of any further litigation regarding IEEPA tariff refunds, CIT chief judge Mark A. Barnett ordered Judge Eaton to be the sole responsible for hearing them, thus ensuring that “there is no danger that another Judge, even one in [the CIT], will reach any contrary conclusions.”

Uncertainty remains

The CIT decision doesn’t mention entries that have already been liquidated, and doesn’t provide any more clarity as to how refunds will be paid. 

Government attorney Elio Gonzalez at Alston & Bird wrote about the CIT ruling on the law firm’s website, noting that “it is common for CBP to liquidate or reliquidate entries with refunds where it is determined that the duties deposited by an importer at the time of entry are not required by law.” 

This could mean refunds are paid as a result of the liquidation process with the CBP, but the agency has not yet provided guidelines indicating this as the final protocol. 

There’s also the sheer scale of refunds to consider, which might be too much for the CBP’s Automated Customs Entry Portal to handle. In conversation with NBC News, trade lawyer Alexis Early, a partner at Bryan Cave Leighton Paisner, said the agency’s system was not designed for a mass refund: “The devil will be in the details of the administrative process.”

The Trump Administration has yet to react to the CIT ruling, but an appeal is expected, as President Trump has warned that, if approved by the court, refunds could involve up to five years of litigation. 

*All images are referential

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