U.S. Appeals Court Order On Universal Tariff Refunds; Status Of Liquidated Entries In Question

As expected (see alert), on June 4, 2026, the U.S. Customs and Border Protection (“CBP”) filed a response in the Court of International Trade (“CIT”) arguing it cannot comply with the Court’s order for universal tariff refunds and is appealing that order to the Court of Appeals for the Federal Circuit. The effect of these filings is to short-circuit any near-term action on tariff refunds for imports that have been fully liquidated (that is, with duties finally computed and assessed), reversing previous expectations of an automatic, universal refund process for all entries on which tariffs were imposed under authority of the International Emergency Economic Powers Act (“IEEPA”), which the U.S. Supreme Court invalidated in February 2026 (see alert). Refunds on unliquidated entries and those within 80 days of liquidation are unaffected by the new CPB position and will continue to be processed.

In explaining its new position on universal refunds, the U.S. argues that it has no authority to refund fully liquidated tariffs and that the CIT may not order a universal refund system as a result of the Supreme Court’s 2025 decision in Trump v. Casa, which generally barred federal district courts from issuing nationwide injunctive orders. Opponents argue that (1) the Supreme Court’s rejection of IEEPA authority nullified the tariffs from their origination and overcomes any customary CBP inability to refund fully liquidated duties; and (2) the CIT is a specifically authorized national court that differs from federal district courts in its inherent nationwide reach and is an understood exception to the rule announced in Casa.

Presiding CIT Judge Richard Eaton had previously scheduled a hearing for June 9 to hear from CBP Commissioner Rodney Scott on these issues, but CBP opposed his appearance, offering other CBP witnesses instead. On June 4, Judge Eaton agreed to accept these alternatives, but it is likely that the CBP will continue to assert the same grounds for why it cannot proceed on refunds for liquidated entries as it is now pressing on appeal.

In another development on June 4, counsel for small business plaintiffs in the case filed a motion for class action certification and will press the argument for universal refunds for all IEEPA duties that have been paid by similarly situated importers.

Belying earlier expectations of an automatic, universal IEEPA refund process, the most recent developments have injected new levels of uncertainty for imports beyond unliquidated entries or those within 80 days of liquidation. In these circumstances, importers that are seeking refunds for fully liquidated entries should consider filing individual complaints at the CIT to preserve their rights. 

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