IEEPA tariff refunds uncertain as importers urged to take action

Recent developments surrounding tariffs imposed under the International Emergency Economic Powers Act (IEEPA) have created both opportunity and uncertainty for U.S. importers. With the U.S. Supreme Court ruling that IEEPA-based tariffs are unlawful, many companies understandably assume that refunds will follow automatically. In reality, that is far from guaranteed. 

For importers seeking to recover duties paid under these tariffs, a proactive legal and compliance strategy is essential. 

A Favorable Ruling = Automatic Refunds 

The Supreme Court’s determination that IEEPA tariffs are unlawful represents a significant legal milestone. However, the decision does not, by itself, create a streamlined or automatic refund mechanism for affected importers. 

On March 4, 2026, Judge Eaton of the Court of International Trade (CIT) issued an order directing U.S. Customs and Border Protection (CBP) to implement a refund process for certain entries that were assessed IEEPA duties. The order contemplated relief to all importers who paid IEEPA duties, stating, “All importers of record whose entries were subject to IEEPA duties are entitled to the benefit of the Learning Resources decision.” However, there is a real question as to whether the court actually has the power to order refunds for importers who have not filed a lawsuit at the CIT. The government is expected to appeal the order. 

On March 6, 2026, the United States filed a declaration from Brandon Lord, Executive Director of the CBP Office of Trade with the CIT. In this declaration, Mr. Lord explained CBP’s plan to refund the IEEPA Tariffs in compliance with the CIT’s order, but also stated that CBP does not currently have the capability to implement this. Subsequently, Judge Eaton suspended his order pending further proceedings and allowing CBP more time to implement the refund process.  

CBP’s Position on Refunds 

CBP’s posture in the litigation makes clear that refunds are not guaranteed for all importers who paid IEEPA tariffs. CBP has highlighted the administrative and logistical challenges of issuing refunds, pointing to the sheer volume of affected entries and the limitations of its current systems. Notably, in a hearing on March 4, 2026, CBP told the CIT “It is not our position that every single entry and every importer will get a refund. Our position is that you have to file a claim in this court which is why over 2,000 companies have filed claims.” 

Entry Timing 

There is also an open question about whether, litigant or not, refunds will be given for liquidated, non-protested entries. Addressing how refunds should be implemented, Judge Eaton’s order directed CBP to eliminate IEEPA duties from unliquidated and entries that are not “finally liquidated” (a process that occurs 90 days after liquidation): 

“With respect to any and all unliquidated entries that were entered subject to the IEEPA duties, U.S. Customs and Border Protection is hereby directed to liquidate those entries without regard to the IEEPA duties. Any liquidated entries for which liquidation is not final shall be reliquidated without regard to IEEPA duties.” 

However, the order doesn’t apply to entries that are beyond the 90-day re-liquidation period or  to IEEPA tariffs not at issue in the Supreme Court case, such as the India and Brazil IEEPA tariffs, leaving a gap for how these entries will be treated. 

What Importers Should Do 
It is likely that the U.S. will file an appeal challenging the scope of the CIT order. In preparing for future refunds, we recommend that all importers take the following steps: 

1. File suit in the CIT  

The President has made it clear that the United States intends to fight the refund process. We are confident that importers who have filed suit in the CIT will be eligible to receive refunds for the IEEPA Tariffs they paid. It is far less clear whether, and how, refunds will be issued for those that do not go to Court.  

We encourage all importers impacted by the IEEPA tariffs to file a court challenge in the CIT. We believe that doing so preserves the right to receive refunds for IEEPA tariffs, and minimizes the risk of having to pursue a long additional post-decision process. 

2. Create an ACE account immediately  

We have recommended for years that companies set up an ACE account, and this has now become even more important. ACE is the primary system for the international trade community to submit import and export data to CBP and other participating government agencies. CBP and the partner government agencies use ACE to collect, track, and process required trade information.   

An ACE account gives importers full visibility into import activity, better data for audit preparation, streamlined communication with CBP, and more. ACE is also the only way for importers to access the ACH application, which must be completed to receive refunds from CBP.  

3. Set up your U.S. bank account in ACE to receive ACH refunds 

CBP published an Interim Final Rule on January 2, 2026, announcing that the agency will issue all refunds electronically (subject to certain exceptions under 31 CFR part 208) effective February 6, 2026. CBP no longer issues any refunds by check, unless a waiver has been approved.  

Importers who are not already enrolled in the ACH Refund program must submit an ACH Refund application through the ACE Portal. As part of the ACH Refund application, all applicants are required to use a U.S. bank account (note that foreign Importers of Record may have an ACE account, but a U.S. bank account must be used for the ACH application). Once an application for ACH Refund is successfully submitted and approved in the ACE Portal, all future refunds will be issued electronically to the designated U.S. bank account. 

There are 330,566 importers who have paid IEEPA duties or duty deposits. While CBP has issued numerous communications regarding the new rule, only 21,423 entities (mostly importers or their customs brokers) have completed the set-up process to receive their refunds electronically. Until importers complete the process to receive refunds electronically, the refunds will be rejected.