March 2, 2026
Importers of record can (a) seek refunds using an administrative process, or (b) file a lawsuit.
2. What are the administrative options for seeking IEEPA tariff refunds?
The administrative options for seeking IEEPA tariff refunds depend on (a) whether the entry has been liquidated, and (b) if so, when the liquidation occurred. “Liquidation” in this context means the final computation or ascertainment of duties on applicable entries.
If the entry has not been liquidated, then importers of record may file a Post Summary Correction with U.S. Customs and Border Protection (“CBP”) to remove the IEEPA tariff classification codes. A Post Summary Correction must be filed within 300 days of the date of entry, or at least 15 days before the liquidation date, whichever comes first. CBP has not yet indicated whether it will accept Post Summary Corrections removing IEEPA tariff codes.
If the entry has been liquidated, then the importer of record may file a protest with CBP within 180 days of the date of liquidation. The protest must include supporting documentation to meet the requirements of 19 U.S.C. § 1514 and 19 C.F.R. § 174.12. To avoid delay, a protester is allowed to seek an accelerated disposition. If CBP does not decide the protest within 30 days after a request for accelerated disposition, then the protest is deemed denied. If the protest is denied, then the importer of record could file a lawsuit with the Court of International Trade under 28 U.S.C. § 1581(a) and would need to meet the deadline for doing so.
3. How does the liquidation process work, and why does that matter for this purpose?
The liquidation process generally depends on whether the imported goods are valued at greater than $2,500. Imported goods valued in aggregate at greater than $2,500 generally fall into what is called the formal entry process under 19 U.S.C. § 1484. Imported goods valued in aggregate at $2,500 or less, on the other hand, fall into what is called the informal entry process under 19 U.S.C. § 1498.
For current purposes, the crucial difference between formal and informal entry involves the liquidation date. Under the formal entry process, the importer of record pays an estimated duty when the goods enter the United States, and CBP later determines the final amount owed and “liquidates” the entry. CBP then notifies the importer of record that the liquidation has occurred and if the importer owes money or is entitled to a refund. Under that formal process, liquidation typically occurs within 314 days after entry. Because of that window before liquidation, many importers who have paid estimated IEEPA tariffs under a formal process still could file Post Summary Corrections before liquidation. If entries have been liquidated under the formal process, importers of record will need to track the date of liquidation and the deadline for filing any protests.
Compared to the formal entry process, the informal entry process for goods valued at $2,500 or less creates a compressed time window and potential traps. Under the informal process, liquidation under 19 C.F.R. § 159.10(a) occurs immediately when the importer pays the duties upon entry. Thus, there is no window for Post Summary Corrections, and the 180-day deadline for protests would start to run immediately. Given that procedure, the deadline to protest many IEEPA entries made through the informal process has already expired, and the protest deadlines for the remaining informal-process IEEPA entries are approaching quickly.
If an importer wants to claim a refund, then for all entries—whether they are believed to have involved formal or informal entries—importers should confirm (a) whether the entries are liquidated, (b) if so, when the liquidation occurred, and (c) the deadline for filing a protest.
4. What is the option for filing a lawsuit without a protest or if the protest deadline has expired?
One option is to file a lawsuit in the United States Court of International Trade under 28 U.S.C. § 1581(i). In an earlier ruling, the Court of International Trade suggested that section 1581(i) is the proper vehicle for seeking an IEEPA tariff refund. Importers who file a lawsuit will, at some point, need detailed documentation regarding the tariffs that they have paid. But the importers need not submit that detailed documentation when they file the lawsuit. For example, a recent complaint by FedEx under section 1581(i) did not provide that detail and instead requested “a full refund from Defendants of all IEEPA duties Plaintiffs have paid to the United States.”
5. Does liquidation bar IEEPA refund claims?
There has been—and may continue to be—uncertainty about whether liquidation bars IEEPA refund claims. Some court orders and other filings in prior lawsuits suggest that liquidation should not bar refund claims if a timely lawsuit is filed. But it is not clear how that issue ultimately will be decided in those lawsuits or in others, including in lawsuits yet to be filed.
6. What steps should importers take now if they are serious about pursuing refunds?
Because of the current unpredictability, importers of record who are serious about pursuing refunds should lean toward making protective filings under all potential avenues using a belt-and-suspenders approach. That would include Post Summary Corrections and protests where available, and a lawsuit under section 1581(i).
If the importer of record used a customs broker, that broker would be important in helping to compile supporting documentation. In addition, importers should consult a lawyer to develop and execute a refund strategy tailored to the importer’s specific circumstances and to confirm the deadlines that apply to various options.
McGrath North stands ready to work with importers who want to pursue refunds.
IEEPA Tariff Refund
What Options Do Importers of Record Have To Seek Refunds of IEEPA Tariffs?In the recent Learning Resources, Inc. case, the United States Supreme Court held that various International Emergency Economic Powers Act (“IEEPA”) tariffs were unlawful, but the Court’s ruling did not address the issue of refunds. A dissenting opinion predicted that any refund process would be a “mess.” Since the Supreme Court’s decision, the administration has indicated that it intends to fight vigorously against any refunds. Given that context, this alert summarizes basic options for importers of record who wish to seek refunds.
Importers of record can (a) seek refunds using an administrative process, or (b) file a lawsuit.
2. What are the administrative options for seeking IEEPA tariff refunds?
The administrative options for seeking IEEPA tariff refunds depend on (a) whether the entry has been liquidated, and (b) if so, when the liquidation occurred. “Liquidation” in this context means the final computation or ascertainment of duties on applicable entries.
If the entry has not been liquidated, then importers of record may file a Post Summary Correction with U.S. Customs and Border Protection (“CBP”) to remove the IEEPA tariff classification codes. A Post Summary Correction must be filed within 300 days of the date of entry, or at least 15 days before the liquidation date, whichever comes first. CBP has not yet indicated whether it will accept Post Summary Corrections removing IEEPA tariff codes.
If the entry has been liquidated, then the importer of record may file a protest with CBP within 180 days of the date of liquidation. The protest must include supporting documentation to meet the requirements of 19 U.S.C. § 1514 and 19 C.F.R. § 174.12. To avoid delay, a protester is allowed to seek an accelerated disposition. If CBP does not decide the protest within 30 days after a request for accelerated disposition, then the protest is deemed denied. If the protest is denied, then the importer of record could file a lawsuit with the Court of International Trade under 28 U.S.C. § 1581(a) and would need to meet the deadline for doing so.
3. How does the liquidation process work, and why does that matter for this purpose?
The liquidation process generally depends on whether the imported goods are valued at greater than $2,500. Imported goods valued in aggregate at greater than $2,500 generally fall into what is called the formal entry process under 19 U.S.C. § 1484. Imported goods valued in aggregate at $2,500 or less, on the other hand, fall into what is called the informal entry process under 19 U.S.C. § 1498.
For current purposes, the crucial difference between formal and informal entry involves the liquidation date. Under the formal entry process, the importer of record pays an estimated duty when the goods enter the United States, and CBP later determines the final amount owed and “liquidates” the entry. CBP then notifies the importer of record that the liquidation has occurred and if the importer owes money or is entitled to a refund. Under that formal process, liquidation typically occurs within 314 days after entry. Because of that window before liquidation, many importers who have paid estimated IEEPA tariffs under a formal process still could file Post Summary Corrections before liquidation. If entries have been liquidated under the formal process, importers of record will need to track the date of liquidation and the deadline for filing any protests.
Compared to the formal entry process, the informal entry process for goods valued at $2,500 or less creates a compressed time window and potential traps. Under the informal process, liquidation under 19 C.F.R. § 159.10(a) occurs immediately when the importer pays the duties upon entry. Thus, there is no window for Post Summary Corrections, and the 180-day deadline for protests would start to run immediately. Given that procedure, the deadline to protest many IEEPA entries made through the informal process has already expired, and the protest deadlines for the remaining informal-process IEEPA entries are approaching quickly.
If an importer wants to claim a refund, then for all entries—whether they are believed to have involved formal or informal entries—importers should confirm (a) whether the entries are liquidated, (b) if so, when the liquidation occurred, and (c) the deadline for filing a protest.
4. What is the option for filing a lawsuit without a protest or if the protest deadline has expired?
One option is to file a lawsuit in the United States Court of International Trade under 28 U.S.C. § 1581(i). In an earlier ruling, the Court of International Trade suggested that section 1581(i) is the proper vehicle for seeking an IEEPA tariff refund. Importers who file a lawsuit will, at some point, need detailed documentation regarding the tariffs that they have paid. But the importers need not submit that detailed documentation when they file the lawsuit. For example, a recent complaint by FedEx under section 1581(i) did not provide that detail and instead requested “a full refund from Defendants of all IEEPA duties Plaintiffs have paid to the United States.”
5. Does liquidation bar IEEPA refund claims?
There has been—and may continue to be—uncertainty about whether liquidation bars IEEPA refund claims. Some court orders and other filings in prior lawsuits suggest that liquidation should not bar refund claims if a timely lawsuit is filed. But it is not clear how that issue ultimately will be decided in those lawsuits or in others, including in lawsuits yet to be filed.
6. What steps should importers take now if they are serious about pursuing refunds?
Because of the current unpredictability, importers of record who are serious about pursuing refunds should lean toward making protective filings under all potential avenues using a belt-and-suspenders approach. That would include Post Summary Corrections and protests where available, and a lawsuit under section 1581(i).
If the importer of record used a customs broker, that broker would be important in helping to compile supporting documentation. In addition, importers should consult a lawyer to develop and execute a refund strategy tailored to the importer’s specific circumstances and to confirm the deadlines that apply to various options.
McGrath North stands ready to work with importers who want to pursue refunds.
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