UPDATE:Following the March 4, 2026, ruling from the Court of International Trade directing CBP to refund duties imposed under IEEPA tariffs, CBP has released new guidance. Read more here for the latest updates, including CIT’s decision to suspend immediate refunds in order to allow CBP’s new refund process to be put into place.
On March 4, 2026, the Court of International Trade (CIT), in the case of Atmus Filtration, Inc. v. United States, issued an order directing the CBP to refund duties imposed under the IEEPA following the Supreme Court ruling. The CIT’s order requires CBP to take action to liquidate, or reliquidate, affected entries by removing the IEEPA duties. This applies broadly to all unliquidated entries subject to those duties, as well as to liquidated entries for which liquidation is not yet final.
Following the Supreme Court’s ruling on February 20, 2026, invalidating tariffs imposed under the International Emergency Economic Powers Act (IEEPA), U.S. importers are eligible to recover duties already paid. While the CBP typically finalizes (or liquidates) customs entries within 314 days of entry on the Automated Commercial Environment (ACE) system to ensure that an importer paid the correct tariff, importers need to keep a close eye on the liquidation dates so they understand their overall positions and tariff refunds owed.
For additional context on the government’s transition away from IEEPA tariffs and what importers should expect next, see our related analysis on the shift to Section 122 tariffs.
Here are three scenarios of action to take, based on the status and timing of the customs entries. Note: They are not mutually exclusive, so it’s critical to keep track of all entries, their status and key dates to consider whether to move to the next option.
Option 1: Unliquidated Entries ➜ Importer Either Makes Post-Summary Correction (PSC) in CBP ACE System or Follows CBP Process (TBD) to Obtain IEEPA Tariff Refunds
- Importers should search all customs entries on the ACE system and identify which ones have liquidated (shipments over 314 days), and which ones have not.
- Filter by the relevant Chapter 99 Harmonized Tariff Schedule of the United States (“HTSUS”) codes for the IEEPA tariffs to isolate the universe of entries where IEEPA tariffs were paid.
- For shipments less than 314 days (unliquidated entries) or any liquidated entries for which liquidation is not yet final, importers or their customs broker can file Post Summary Corrections, making the corrections in the ACE system directly. Additional guidance is needed on whether or not it is necessary to do this.
- Following the CIT’s order issued on March 4, 2026, the CBP is expected to liquidate these entries by removing any IEEPA duties automatically without the need for filing PSCs, however, more clarity will be provided post the CIT conference on March 6.
- This is the same routine process to adjust for overpayment corrections with CBP for any reason, now including IEEPA tariff overpayments.
Option 2: Liquidated Entries Within 180 Days ➜ File Protest with CBP
- For entries that have already been liquidated, importers, through their customs broker or a law firm, must file a formal protest (CBP Form 19) within 180 days of the liquidation date.
- Missing this deadline by even a single day is an absolute bar to recovery of any duty refunds under normal procedures.
- The protest would indicate the importer’s objection to the collection of the IEEPA tariffs as illegal.
- This is likely the shortest and most efficient way to get tariff refunds for liquidated entries. However, it all remains to be seen, and more clarity is needed from the CBP. If there is no response/traction here, your attorney may advise filing a lawsuit.
Option 3: Liquidated Entries Past 180 Days ➜ File Lawsuit in Court of International Trade
- For entries that have already been liquidated and are beyond the 180-day liquidation date, the only option is to hire an attorney to file a lawsuit at the Court of International Trade: 28 USC 1581(i) action complaint.
- Preferably, this needs to be filed after – or in conjunction with – filing a protest with CBP. So, first file a protest, then file a lawsuit, since the Court of International Trade may only take the case if all other options were considered (i.e., the protest was first filed with CBP).
- This could be a longer process as importers need to wait to get on the very full docket, for adjudication by the court. However, we are already seeing cases come up and decisions made by the CIT. Filing the lawsuit does not mean it will be heard individually; it could be a protective measure to apply the decisions made for the bigger companies/lawsuits. There is no formal process in place for this, related to tariffs, like options 1 and 2 above, so it should only be a last resort.
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Conclusion
The Supreme Court’s ruling and the order issued thereafter by the CIT present a significant refund opportunity for importers that paid tariffs under IEEPA. However, recovery may depend on timely and accurate action, though we will know more details with further guidance to be provided in the upcoming CIT conference. Importers should review their entries as soon as possible, determine the appropriate path based on liquidation status and work closely with customs brokers or legal counsel where required. Given the strict deadlines involved, acting now is critical to preserving refund rights and minimizing lost recovery opportunities.
Authors: Marina Gentile, Partner and Lead, Global Transfer Pricing Strategies | [email protected] and Mukul Chhabra | [email protected]