Customs: US Supreme Court Reviews IEEPA Tariffs and What Importers Should Know
The United States (US) Supreme Court is currently deliberating the legality of tariffs imposed under the International Emergency Economic Powers Act (IEEPA) during the Trump administration. A decision is expected soon, but uncertainty remains regarding whether duty refunds will be available if the tariffs are struck down, and what steps importers may need to take to secure them.
Key considerations for importers:
• Monitor liquidation deadlines: Traditionally, duty refunds require filing a formal protest within 180 days of liquidation. While most entries liquidate about 314 days after entry, US Customs and Border Protection (CBP) can act sooner. Timely protests are essential to preserve claims.
• Court action may be necessary: Under certain legal interpretations, importers may need to file cases in the US Court of International Trade (CIT) to protect refund rights. Some theories suggest that only pre-liquidation court actions, combined with injunctions, can guarantee recovery.
• Alternative scenarios: Refunds could be issued automatically through a court order, legislation, or executive action—but this outcome is uncertain. Even if the Supreme Court invalidates the tariffs, the administration’s stance on retroactive refunds remains unclear.
Importers should evaluate their strategy, whether to file protests, pursue litigation, or await further developments, based on their risk tolerance and operational priorities.
FIATA together with the kind support of Frank J. Desiderio, Esq., Partner at GDLSK New York, will continue to monitor the situation and share updates as they become available.
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