Recent developments in the U.S. Court of International Trade (CIT) have provided additional clarity regarding refunds for tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

On March 4, 2026, CIT Judge Richard Eaton issued a Refund Order directing U.S. Customs and Border Protection (CBP) to remove IEEPA tariffs from certain import entries and issue refunds where applicable.

Specifically, the order directs CBP to:

Liquidate unliquidated entries without IEEPA duties; and
Reliquidate entries that are not yet final without those duties.

The Court did not order refunds for entries that have already become final, meaning they had already been processed into the country.

The Court also indicated that the order applies to all importers. However, the Trump Administration has indicated that it intends to appeal the order, though an appeal had not yet been filed at the time of this writing.

Customs Refund Process Under Development

Following the Court’s ruling, CBP informed the Court that it cannot implement refunds immediately using its existing systems. As a result, the agency is developing new functionality within the Automated Commercial Environment (ACE) system to process refund claims.

Under CBP’s proposed process, importers will be required to submit a declaration identifying entries on which IEEPA duties were paid. The ACE system will then:

Validate the listed entries
Recalculate duties without the IEEPA tariffs, including applicable interest
Process refunds electronically through the U.S. Treasury

CBP has indicated that it is working to have this system available by April 20, 2026. That date reflects the expected availability of the refund-processing system, not the date by which refunds will be issued.

To allow CBP time to build this functionality, the Court has temporarily paused enforcement of the Refund Order while implementation proceeds.

Considerations for Importers

CRA encourages manufacturers and other affected stakeholders to consult with outside legal counsel to assess and preserve any rights to tariff refunds.

The Supreme Court’s decision was expected to become final on March 17, 2026, which may affect the procedural options available to importers seeking refunds.

Companies that served as the importer of record, or that used a third party to import cigars, tobacco, packaging, or other inputs subject to IEEPA tariffs, may wish to review:

Entries dating back to March 4, 2025
Duties paid under IEEPA authority
Applicable protest or procedural deadlines
Contractual terms governing any recovered duties
Whether they have an ACE importer account and are enrolled for electronic refunds

Where a third-party importer or distributor served as the importer of record, coordination may be necessary, as only the importer of record may be able to directly pursue certain refund claims.

Moving Forward

CRA will continue to monitor developments at the Court of International Trade and U.S. Customs and Border Protection as the refund process develops and additional guidance becomes available.

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