Barnes & Thornburg | IEEPA Tariff Refunds: CIT Orders Action, Questions Remain

In a previous alert, we reported that the U.S. Supreme Court struck down President Donald Trump’s tariffs imposed under the IEEPA and that the President was considering other alternative tariffs. We followed up with a subsequent alert about the CBP issuing instructions to end the collection of all IEEPA tariffs, and then President Trump issued a proclamation levying an across-the-board additional tariff of 10% under Section 122 of the Trade Act of 1974.

On March 4, 2026, the CIT issued an order instructing CBP to begin issuing refunds automatically to importers that previously paid IEEPA duties to CBP. Below are highlights:

1. For unliquidated entries, CBP has been instructed to liquidate those entries automatically without the application of IEEPA duties (i.e., CBP must liquidate with refund of IEEPA duties).
2. For liquidated entries for which “liquidation is not final,” CBP has been instructed to reliquidate automatically those entries without regard to IEEPA duties (i.e., to issue a refund on IEEPA duties).
3. This order applies to all importers who paid IEEPA duties.

The term “liquidation” refers to the final computation or ascertainment of duties on entries, which typically occurs around 314 days after the entry date. However, many importers have found that some of their entries subject to IEEPA duties liquidated earlier than the 314 days. Thus, each importer should confirm their entry liquidation status.

Additionally, effective Feb. 6, 2026, CBP has stated it will only issue tariff refunds electronically to importers that are enrolled in the Automated Commercial Environment Secure Data Portal (ACE Portal) and have set up refund authorization via Automated Clearing House (ACH). CBP’s instructions on ACH refund authorization can be found at this Federal Register notice.

Notwithstanding today’s CIT order, there remain several unanswered questions:

• What is meant by “liquidation is not final?” Typically, final liquidation is defined as more than 180 days after the date of liquidation (i.e., the protest deadline).
• What will happen to finally liquidated entries (i.e., have passed the 180 days and that were not protested)? We note that, in a different IEEPA case before the CIT, the court stated that filing protests may be “futile” in protesting the constitutionality of IEEPA duties. However, in an abundance of caution and in light of today’s CIT order, importers may want to consider filing protests for any liquidated entries that are approaching the 180-day deadline to delay the finality of liquidation.
• Is this CIT order the final word on IEEPA tariff refunds? We think the U.S. government is likely to appeal this CIT order and ask that the Federal Circuit stay (i.e., “freeze”) the CIT order. It is unclear how the courts would handle entries approaching final liquidation while an appeal is pending. Following a conference before the CIT on Friday, March 6, 2026, more information will certainly come.