Protecting Importers’ Rights: Recovering Duties if IEEPA Tariffs Are Struck Down

This article explains what could happen if the Supreme Court rules that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) are unlawful, and — critically — how importers can protect their right to recover duties already paid. Refunds are not automatic. You must preserve your claim now.

While this is all conjecture prior to a supreme court ruling, reviewing these basics and taking tentative steps can prove invaluable. A ruling overturning these tariffs itself could establish clarification for securing a refund. Will there be a workable solution for resource constrained small to medium size companies, for example?

Big Investment Firms Betting on IEEPA Refunds

It has been reported that investors are betting that the Supreme Court will strike down IEEPA tariffs. Some Wall Street firms are offering firms around 10 to 20 cents for every dollar they paid in "reciprocal" tariffs. They are also offering settlements for fentanyl related tariffs (although these are considered less likely to survive a legal challenge).

Typical Entry Process Flow regarding updated/ corrected entries

• U.S. Customs and Border Protection (CBP) has accepted the entry on date of entry as-is (it does not mean it is right or wrong -- just accepted)
• 314 days from the shipment entry date: Liquidation
• Any requested corrections will either be approved or denied by US Customs at the liquidation date.
• US Customs has the final decision. The importer has no control over when/or if a refund will be provided by US Customs.
• It currently takes several months to resolve such issues with a building backlog by the Customs Regulatory Authorities

Notes on US Customs Entry, Liquidation and Protests

• Some reciprocal tariff entries may liquidate prior to Supreme Court decision 
• But best to keep up to date. Request a report from your customs broker for details IEEPA tariffs paid
• The information below will help keep you informed on Post Entry Corrections

This information is primarily to encourage importers to discuss with their brokers and attorneys. Our team of resources can assist in this regard.

Keep in mind that the IEEPA tariffs are only one of may likely import fees. They do NOT include such things as:

• Regular "most favoured nation" / Column 1 duty rate
• "Section tariffs" such as those for aluminum and steel (Section 232, section 300 etc)
• Merchandise processing and/or harbour maintenance fee
• Single entry bond cost and other brokerage fees

The reciprocal duties can be identified by their separate Chapter 99 designation. This is distinct from (and in addition to) the MFN/ column 1 tariff classification.

1. Legal context

IEEPA gives the President authority to regulate commerce during declared national emergencies. If the Court finds that IEEPA (or its use to impose tariffs) lacked legal authority, duties collected under IEEPA could be declared unlawful. Historically, courts have allowed refunds in similar circumstances, but only for parties that preserved their legal rights. Having said that, this case is historical in both scale and scope so the rules this time may be different.

A liquidated entry is the final determination by U.S. Customs and Border Protection (CBP) of the duty. Once liquidated, the entry is considered legally complete. CBP normally liquidates an entry within one year of release (the entry release date).For certain cases, CBP may extend the liquidation period to 2–3 years.

Importers have 180 days from the date of liquidation to submit a request - or protest- to correct or recover duties.

For e-commerce and parcel imports: The transition to Entry Type 11 and the informal liquidation after duty payment definitely shortens the protest window. The sheer number of entries generated from consolidations is a major concern in presenting a protest.

2. How refunds are typically recovered

Protests (19 U.S.C. §1514)

The primary administrative route is the CBP protest. Importers have 180 days from the date of liquidation to file a protest. A timely protest preserves a refund claim that can be litigated in the Court of International Trade (CIT) if necessary.  For liquidated entries, the protest route may be an option. Another options to consider is the CBP reconciliation program which can flag items for future revision.

Likely, many of your IEEPA related entries may already have liquidated. But it can only assist if you file a protest for those still within the 180 days.

How can US Customs identify the IEEPA tariffs?

Data on the relevant Chapter 99 IEEPA tariff is readily available via Customs ACE Portal to CBP.  But it is likely individual importers will have to extract this data for Post Summary Correction of non liquidated entries.

Post-Summary Corrections (PSC) and delaying liquidation

For unliquidated entries, file a PSC and request that CBP not liquidate the entry. This does not guarantee a refund, but it can flag the entry and preserve administrative options. PSC filings are usually resolved within one to several months. Discuss with your customs brokers regarding their charge for these filings. The amount of filings will be unprecedented so there will likely be some automated processes being developed. 

Court of International Trade - CIT Filing

If the Supreme Court overturns EEPA tariffs, it may direct importers to file suit in the Court of International Trade (CIT) duty recovery. This process have never been done at this scale. They typically involve lengthy - and costly - legal processes that stretch out over several years.

Preparation

We are advising importers to take the simple first steps of capturing all data related to IEEPA tariffs and to file a PCS prior to liquidation.

Drawback is not the tool

Drawback programs refund duties when imported goods are re-exported or destroyed. Drawback processes do not apply to recover duties unlawfully collected.

3. Practical steps to take now

1. Get reports from your broker to identify IEEPA-related payments.
2. Monitor liquidations — the 180-day protest clock runs from the liquidation date.
3. Prepare sample protest language and file when entries liquidate.
4. File Post Entry Corrections for unliquidated entries and request non-liquidation where appropriate.
5. Engage with your broker and attorney.This area is legally complex well beyond the information in this blog.

5. Lessons from a Key precedent on duty challenges

U.S. Shoe Corp. v. United States — When a tax was found unlawful, exporters who filed protests recovered refunds; those who did not generally did not. The lesson: preserve the right to challenge.

6. If you missed the protest window

If you did not preserve your claim, recovery becomes harder. Congress or CBP could create a special refund program — but that requires political will and is uncertain. A Supreme Court ruling may also clarify the rights of the importers with some further allowances. Filing a protest when possible never harms your position.

7. Review of Time Frame associated with IEEPA Tariffs, Court Decision and Entry Liquidation

• Early 2025 to mid 2025: Implementation of most IEEPA Tariffs
• Third Quarter 2025 (Sept 9): Supreme Court processes begin
• Fourth Quarter 2025 (First week of Nov): Oral arguments scheduled
• Late 2025/ Early 2026: Potential for an accelerated ruling

So the time frame to a decision may be within the time that the first entries subject to IEEPA may start liquidating.

Conclusion

Its not to early to start extracting data regarding IEEPA-based tariffs. It is likely this conservative supreme court and their "strict textual reading" of statutes will find these tariffs unconstitutional.

In this event, do not assume refunds will be automatic. At least take the first step of identifying the IEEPA duties already paid and prepare a Post Summary Correction request.

Disclaimer: The information is provided for general information only. It is not intended as legal advice.