Update to Court of International Trade IEEPA Tariffs Ruling

Court of Appeals and District Court Weigh In

As noted in yesterday’s Trade Alert, the Court of International Trade (CIT) ruled that President Trump’s use of the International Emergency Economic Powers Act (IEEPA) to instill tariffs (known as the “fentanyl” and “reciprocal” tariffs imposed in February and April, respectively) was unauthorized.

The National Customs Brokers & Forwarders Association of America (NCBFAA) and the law firm of Sandler, Travis & Rosenberg, P.A. (ST&R) provided the following update and analysis that provides clarification for importers:

1. CIT rendered its decision that the IEEPA tariffs were unlawful.
2. CIT issued an order that the IEEPA tariffs and executive orders and amendments were to be declared invalid and that they be revoked and that the government has 10 calendar days (until June 7) to effectuate the order.
3. The Government filed an appeal to the Court of Appeals in the Federal Circuit (CAFC).
4. The Government filed a motion at the CAFC to stay the CIT order for at least 7 days to allow the CAFC and if necessary the Supreme court to consider their longer term request.
5. The CAFC issued granted the Government’s request to stay the CIT order (hold off on revoking the Executive Orders) until they have time to consider their request for the longer term.
6. The District Court issued its decision that the IEEPA is not a law providing for tariffs and therefore the CIT does not have jurisdiction, and granted the preliminary injunction requested for the two plaintiffs only (not all importers).
7. The District Court held off on issuing its order for 14 days, allowing the Government to file an appeal.

So, what does all the above mean to importers and their customs brokers?

Tariffs: For the time being, tariffs will remain in place. The appeals court ordered that no action be taken until they have had time to consider the request to stay the order for the long term. So, it is a temporary stay, pending further consideration for a long-term suspension once the parties have both offered their position to the court. Meanwhile, you pay tariffs.

Jurisdiction: Right now, we have two courts that have decided they have jurisdiction to decide the cases. We must wait to see whether the CIT ultimately has jurisdiction and we follow its orders, or if the District Court has jurisdiction and we follow its orders.

Refunds: It is possible that at the end of the day, importers will be eligible for refunds equivalent to the duties paid variously for the IEEPA Fentanyl, the IEEPA Fentanyl and Border and the IEEPA Reciprocal tariffs retroactive to the first day of application (either Feb. 4 or April 5). However, until all the court issues are straightened out, you cannot correct your entries using a post summary correction – PSC – or file entries without the IEEPA tariffs – and it may not get sorted out until after the entries liquidate – at which time you will need to file protests to protect those entries and keep them open for when the courts have settled the issue.

Action: Importers should track all entries for which any IEEPA tariffs were paid including the expected liquidation date and the last day to file a protest (180 days from liquidation). As the case progresses, we will then know for which entries to either file a PSC, if the shipment is not liquidated, or to file a protest if it is liquidated. This data will also provide you with an expectation of potential refunds. Note that EVERYONE will be seeking refunds if the Executive Orders are eventually cancelled, so set expectations for how timely any eventual refunds with interest will be paid to you. It would not be unreasonable to expect refunds, if any, to not come until later in 2026 or even in 2027.

A.N. Deringer, Inc. will continue to update our customers and stakeholders accordingly.

Due to the rapidly changing application and modifications of duty rates, please note that Deringer is not responsible for coordinating the timing of U.S. entry and imposed tariff rates.