CIT Amends Order on IEEPA Tariff Refunds: What Importers Should Know

The landscape for recovering tariffs paid under the International Emergency Economic Powers Act (IEEPA) has shifted again, following a new move by the Court of International Trade (CIT). CIT Judge Eaton has issued a revised order on March 27. The updated language suggests that even entries that have been “finally liquidated” should be reliquidated to remove the IEEPA duties. While this sounds like a clear win for importers, the legal reality is a bit more ambiguous. It is currently unclear whether this judicial instruction fits perfectly within existing trade rules, or if it will successfully bypass the usual administrative hurdles. Because of this uncertainty, the “best” path forward depends heavily on the  circumstances of the case.

Navigating The Uncertainty

Given the nature of these court orders, importers might want to weigh several different approaches depending on their risk tolerance and specific entry history:

• To Protest or Not to Protest :While the court order aims to automate some of this, it is safer to keep filing formal protests under 19 USC 1514 just in case the broader order faces a setback. Though these protests may eventually be viewed as redundant, they are useful to preserve importers’ rights in this uncertain time.

• The Litigation Question: Courts have not yet decided whether individual lawsuits are truly necessary right now. Filing a suit could be a way to “lock in” a claim for final entries, but for many, it might be an extra expense that the CIT’s general order eventually makes unnecessary. Only a binding decision by  the courts can clarify this issue for certain.

• Monitoring Liquidation: Importers should consider regular monitoring of their ACE accounts for liquidation status and protest deadlines. While the court is pushing for a solution, staying somewhat aware of your liquidation dates could be helpful if the current legal strategy changes again.
  

• Electronic Refund Setup: Since the refund process is moving toward digital distribution, looking into your ACE Secure Data Portal settings might be a good idea. It isn’t strictly mandatory for the legal claim itself, but it’s something to think about if you want to avoid potential administrative delays down the road.

Consult Legal Counsel: You don’t have to weigh these options alone. At Liang + Moonney, PLLC, our  attorneys are monitoring the situation at the CIT while it develops. If you have questions about your IEEPA refund strategy, we are here to help. Contact us to schedule a consultation.