UPDATE: CIT Pauses Order on Immediate IEEPA Tariff Refunds

On March 6, the Court of International Trade (CIT) temporarily suspended its order requiring U.S. Customs and Border Protection (CBP) to immediately issue refunds for tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

Judge Richard Eaton clarified that the suspension applies specifically to the portion of the order directing “immediate compliance.” The decision followed a conference held the same day and consideration of a declaration from CBP official Brandon Lord.

In the declaration, Lord outlined the practical challenges CBP faces in quickly implementing the refund process. He also indicated that the agency is evaluating a system that could automatically issue refunds to affected importers, with a potential rollout timeline of approximately 45 days.

The pause gives CBP additional time to develop a workable refund mechanism while the court continues to address the underlying dispute over the tariffs.

In a major development for importers, the United States Court of International Trade (CIT) on March 4 ordered U.S. Customs and Border Protection (CBP) to liquidate all unliquidated entries that were subject to tariffs imposed under the International Emergency Economic Powers Act (IEEPA) — without applying those duties.

The court further directed CBP to reliquidate any entries that have already been liquidated but are not yet final, also excluding IEEPA duties. The ruling effectively clears the way for refunds on affected entries that remain open.

Judge Richard K. Eaton stated that, in light of the Supreme Court’s decision holding that IEEPA does not grant tariff authority, relief is warranted. He emphasized the trade court’s unique authority to issue nationwide relief in trade matters.

In addition, CIT Chief Judge Mark A. Barnett indicated that Judge Eaton will be the sole judge presiding over cases involving IEEPA duty refund claims.

The decision marks a significant turning point in ongoing litigation over IEEPA-based tariffs and could result in substantial refunds for impacted importers.

Link to the decision:

gov.uscourts.cit.19346.21.0.pdf

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