IEEPA Refunds: Litigation Update

Since our previous update on the IEEPA tariff refund program on June 26th, both U.S. Customs and Border Protection (CBP) and the federal courts have continued moving the refund process forward. While refunds are being issued through CBP’s CAPE system, recent legal developments indicate that certain importers—particularly those with finally liquidated entries—should pay close attention to the evolving litigation.

The most significant development comes from the legal challenges currently pending before the U.S. Court of Appeals for the Federal Circuit.

According to recent guidance issued by Sandler, Travis & Rosenberg, P.A. (ST&R), legal counsel to the National Customs Brokers & Forwarders Association of America (NCBFAA), the U.S. Department of Justice continues to argue that CBP lacks authority to refund duties on finally liquidated entries without an importer-specific court order. The government is also appealing the Court of International Trade’s broader injunction that directed refunds to affected importers regardless of whether they were parties to the original litigation.

If the government’s position ultimately prevails, some importers with finally liquidated entries may need to pursue additional legal action to preserve their refund rights.

ST&R further notes that because the litigation may not conclude before the applicable statute of limitations expires, importers should discuss their individual circumstances with qualified international trade counsel to determine whether filing an action before the U.S. Court of International Trade is appropriate. The firm also recommends closely monitoring liquidation dates and filing timely protests where available, although the ultimate legal effect of protests remains uncertain.

Importantly, this guidance does not mean that refunds have stopped or that CAPE is no longer functioning. CBP continues processing eligible refund claims and expanding the refund program. Rather, the latest developments primarily affect entries that are not currently eligible for administrative refunds or involve more complex legal issues.

At PNG Worldwide, our U.S. Customs Brokerage team continues to actively monitor CBP guidance, court decisions, and industry developments. We have already filed claims representing tens of millions of dollars in potential IEEPA duty recoveries on behalf of our customers, and several clients have already received partial refunds through the CBP process.

As the legal landscape continues to evolve, we remain committed to keeping our customers informed of significant developments that could affect their claims. Customers with questions regarding their refund status or concerns about specific entries are encouraged to contact the PNG Worldwide U.S. Customs Brokerage team. While we cannot provide legal advice, we are available to coordinate with our customers and their legal counsel throughout the refund process.

Sources: U.S. Customs and Border Protection (CBP); Sandler, Travis & Rosenberg, P.A.; National Customs Brokers & Forwarders Association of America (NCBFAA).

This article is provided for informational purposes only and does not constitute legal advice. Importers should consult qualified international trade counsel regarding legal strategies or decisions related to specific entries and ongoing litigation.