Hello Customers, Colleagues, and Friends,
We want to provide an important update regarding potential refunds of tariffs imposed under the International Emergency Economic Powers Act (IEEPA) and recent guidance from the U.S. Department of Justice (DOJ) and the Court of International Trade (CIT). To be clear, the Supreme Court has yet to rule on this issue but many in the trade believe the IEEPA Tariffs will be overturned. Based on recent court activity and government statements, importers do not need to immediately file lawsuits at the Court of International Trade to preserve potential IEEPA tariff refunds.
Key Update on IEEPA Tariff Refunds
- The DOJ has confirmed that liquidation of entries does not prevent recovery of IEEPA tariffs if those duties are later found unlawful.
- The Court of International Trade retains the authority to order reliquidation and refunds, even after liquidation has occurred.
- As a result, there is no need at this time to seek court injunctions to suspend liquidation.
Recent Court Guidance
- On December 15, 2025, the Court of International Trade clarified that the CIT has the power to order refunds and reliquidation if the Supreme Court determines the IEEPA tariffs are unlawful.
- The court will retain jurisdiction over refund claims for the applicable two-year statute of limitations under 28 U.S.C. §1581(i).
This means importers generally have time to wait for the Supreme Court’s decision, which is expected in the coming months, before taking further legal action.
What Importers Should Do Now
- Stand by for more information. There is a real possibility that even if the IEEPA tariffs are overturned, there will not be any opportunity for refunds.
- Continue to track liquidation dates carefully. If you notice any entries that liquidated far ahead of the standard timeline and are nearing 180 days after liquidation, you may consider protesting the liquidation to “pause” your timeline for possible refunds.
Why This Matters
- Importers are not required to rush into litigation solely to stop liquidation.
- The government has acknowledged that liquidation does not bar recovery.
- The statute of limitations for seeking refunds is generally two years from the relevant tariff action, which for many IEEPA tariffs began in February or April 2025.
We will continue to closely monitor developments and will provide updates as additional clarity emerges. If you have questions about your entries, liquidation timelines, protests, or potential refund strategies, the team at Krenz & Hannan International is here to assist.
Sincerely,Your friends at Krenz & Hannan International