On February 20, the U.S. Supreme Court issued a ruling invalidating the International Emergency Economic Powers Act (IEEPA) as a mechanism to levy tariffs. While the tariffs are invalidated and stopped being collected on February 24th at 12:01 AM, the ruling did not provide operational clarity for importers seeking refunds of IEEPA duties already paid.
No Defined Refund Mechanism
The Supreme Court’s ruling did not establish a refund process for IEEPA tariffs. Instead, the Court remanded key issues to a lower court for further consideration. As a result, questions regarding the scope of relief and the mechanics of any potential refunds remain open.
U.S. Customs and Border Protection (CBP) has not issued guidance addressing whether refunds will be issued, how they would be requested, or what procedural vehicle importers should use and if this will follow or deviate from standard post entry process.
Interim Actions: Data Review and Exposure Assessment
In the absence of formal guidance, importers should focus on impact reporting for IEEPA tariffs already paid. This includes reviewing ACE entry data to identify entries subject to IEEPA tariffs and confirming liquidation status.
Protests as a Risk-Management Strategy
Given the uncertainty, the most conservative approach for importers seeking to preserve potential IEEPA refunds is to file protests on liquidated entries within 180 days of liquidation. Protests remain the primary statutory mechanism for challenging duties assessed at liquidation.
If CBP ultimately determines that IEEPA refunds must be requested through normal post-entry procedures, timely filed protests will be critical. Importers that do not protest within the statutory timeframe may be foreclosed from relief, regardless of how the courts ultimately resolve the remanded issues.
If CBP later clarifies that refunds must be requested through standard post-entry channels, importers will need to demonstrate that they preserved their claims appropriately. Ensuring protests are filed where applicable reduces the risk of procedural denial based solely on timing.
Exemptions and Illustrative Examples - CBP has established a series of Chapter 99 exemption provisions (HTSUS 9903.03.02–9903.03.11). These exemptions must be properly claimed at entry and supported by documentation.
- In-Transit Merchandise – HTSUS 9903.03.02 Goods loaded and in transit prior to 12:01 a.m. EST on February 24, 2026, and entered by 12:01 a.m. EST on February 28, 2026, may qualify for exemption. Example: Equipment shipped from Europe on February 20, 2026, and entered on February 26, 2026.
- Preferential Trade Program Goods – HTSUS 9903.03.03 (U.S. Note 2(aa)(ii)) Includes USMCA-qualifying goods, qualifying DR-CAFTA textile and apparel articles, and other goods entered under a special rate of duty.
- Specified Agricultural and Religious Articles – HTSUS 9903.03.04 Includes certain frozen tropical fruits, religious plant materials, and communion wafers and similar baked goods.
- Civil Aircraft and Other Specified Articles Civil aircraft, engines, parts, and components, as well as certain steel, aluminum, vehicle, semiconductor, copper, and wood products, are also excluded.
Importers should not assume that prior IEEPA exclusions or treatment automatically apply. Each exemption must be reviewed independently under the specific Chapter 99 provisions cited in the CSMS and evaluated on a transaction‑by‑transaction basis.
Tradewin Support
Tradewin is assisting importers with IEEPA exposure assessments, ACE data analysis, and the preparation and filing of IEEPA-related protests. As the lower courts address the remanded issues and CBP evaluates its administrative response, proactive planning and disciplined execution remain essential.
