Supreme Court IEEPA Tariff Case: Action Required for Potential Refund Opportunities for Importers

If your company has paid tariffs under the International Emergency Economic Powers Act (IEEPA) over the past year, you may be entitled to significant refunds depending on the outcome of a pending Supreme Court case. The financial impact could be substantial, with an estimated $75-$85 billion in IEEPA-related duties collected since April 2025. In order to obtain refunds action is required, please read on for details related to the current status and steps you can take.

The Supreme Court Case and Its Implications

The Supreme Court is currently reviewing whether the executive branch had lawful authority under IEEPA to impose the broad tariffs that have been in effect. The case stems from lower court rulings that questioned whether IEEPA authorizes unilateral tariff authority for non-security-related trade disputes. If the Court rules against the government, companies that paid IEEPA tariffs on imports could be eligible for refunds. This case is related to IEEPA tariffs only and does not address Section 232 tariffs imposed under national security grounds (e.g., steel, aluminum) or Section 301 tariffs imposed related to unfair foreign trade practices (e.g., tariffs on Chinese goods).

However, it’s important to understand that even if the Supreme Court invalidates these tariffs, refunds may not be issued and are not automatic. During oral arguments counsel for the plaintiffs acknowledged that an automatic refund might only apply the parties directly involved in the lawsuit, therefore it appears that most companies would need to navigate specialized customs protest procedures to recover their payments.

The Liquidation Timeline Challenge

The most critical issue facing importers is the customs liquidation process. When goods are imported, U.S. Customs and Border Protection has up to 314 days to “liquidate” entries, which essentially closes them for changes. Once liquidated, importers have only 180 days to file a protest. Missing these deadlines could permanently eliminate refund eligibility, even if the underlying tariffs are later determined to be unlawful.

Entries subject to the earliest IEEPA tariffs are already reaching liquidation, creating immediate urgency for companies that want to preserve their rights. Many customs brokers don’t proactively notify importers when liquidation occurs, leaving companies unaware that their refund window is closing.

Strategies Companies Are Using

Recognizing these risks, many major retailers, manufacturers and others have taken proactive steps:

• Filing Lawsuits: Companies are filing suits in the U.S. Court of International Trade to suspend liquidation and preserve refund eligibility until the Supreme Court provides clarity
• Administrative Protests: For entries that have already liquidated, companies are filing protests requesting refunds while asking that decisions be delayed until the Supreme Court case is resolved
• Purchasing Refund Positions: Some firms are acquiring other companies’ potential refund rights, creating a secondary market for these claims given the uncertainty around timing and eligibility

Recent Court Developments

In a positive development for importers, the Court of International Trade recently ruled in AGS Company Automotive Solutions that liquidation will not bar the Court from ordering refunds in pending court cases. However, this protection currently applies only to companies with active litigation before the Court, and the court indicated that administrative protests alone may not be sufficient for recovery.

Financial Considerations

The decision to pursue refund preservation should be based on:

• The total amount of IEEPA tariffs paid
• The timing of entry liquidation
• The costs of litigation or administrative protests
• Your company’s risk tolerance for uncertain outcomes

It’s worth noting that even if IEEPA tariffs are invalidated, the administration retains authority to impose alternative tariff structures under other legal frameworks, though these would apply prospectively, not retroactively.

Action Steps for Your Business

If your company has paid IEEPA tariffs, consider taking these steps:

1. Review your import records to identify entries subject to IEEPA tariffs and their liquidation status
2. Contact your customs broker to obtain liquidation reports and understand timing
3. Assess your financial exposure to determine if preservation efforts are cost-effective
4. Consult with qualified legal counsel experienced in customs law and Court of International Trade procedures

The Need for Specialized Legal Guidance

This area of law is highly complex and time-sensitive. The customs protest system, liquidation procedures, and Court of International Trade requirements involve specialized knowledge that differs significantly from general commercial law. Companies considering action should work with attorneys who have specific experience in customs liquidation, injunction practice, and CIT procedures.

The window for preserving refund rights is narrow and closing rapidly for many entries. As one expert noted, “litigation can be withdrawn later, but lost eligibility cannot be reversed.”

GreerWalker’s Role in Your Decision Process

While GreerWalker cannot provide legal advice on customs matters, our team can help you:

• Analyze the financial impact of potential refunds on your business
• Review import-related expenses and accounting treatments
• Assess the cost-benefit analysis of pursuing refund preservation
• Coordinate with your legal counsel to ensure proper financial documentation
• Plan for potential cash flow impacts from refund recoveries

Given the specialized nature of customs law and the tight deadlines involved, we strongly recommend consulting with qualified trade counsel if you believe your company may be affected by this issue. The potential financial recovery could be substantial, but action must be taken quickly to preserve your rights.

If you have questions about the financial implications of IEEPA tariff refunds for your business, please contact your GreerWalker team member to discuss your specific situation.