Important News Regarding Possible IEEPA Tariff Refunds

Why IFF Customers Should Act Now on IEEPA Tariff Refunds

Recent federal court decisions have opened the door for importers to potentially recover IEEPA‑based tariffs. But refunds are not guaranteed unless companies take protective legal action now.

Two major developments have changed the landscape:

1. The Court of International Trade (CIT) confirmed that once a final determination has been made, importers can recover IEEPA tariffs through litigation—even if their entries have already liquidated.

2. A federal appeals court ruled that the IEEPA tariffs were unlawful, but also signaled that refunds may not be automatically issued by Customs. Companies that fail to file suit may be left without a remedy.

Together, these rulings send a clear message:Importers who want refunds must preserve their rights through timely legal action.

What’s Happening With IEEPA Tariffs?

IEEPA‑based tariffs were imposed under presidential authority. Many importers paid substantial duties on materials sourced abroad.

Now, courts are questioning the legality of those tariffs:

• The federal appeals court has ruled the tariffs unlawful.

• The CIT has confirmed that it has the power to order refunds with interest—but only for companies that have filed a lawsuit.

This means the legal foundation for the tariffs is crumbling, but the refund process is not automatic.

Why Refunds Are Not Guaranteed

Even though the tariffs may ultimately be struck down, importers should not assume that:

• Customs will issue refunds voluntarily

• Filing a protest will preserve rights

• Liquidation blocks recovery

In fact:

• CBP cannot rule on the legality of an Executive Order, so protests are considered futile.

• Liquidation does not prevent refunds, but only if the importer is part of active litigation.

• If you do not file suit, you may lose your refund rights entirely.

This is why both articles emphasize the same point: A protective lawsuit is the only reliable way to secure your place in line for refunds.

What Is a Protective Legal Action?

A protective action is a lawsuit filed before the final outcome is known. It does not require proving damages today—it simply preserves your right to recover duties later.

Think of it as a safety net:

• If the Supreme Court or CIT ultimately rules the tariffs invalid,

  only companies that filed suit will be eligible for refunds.

• If no administrative refund program is created,

  companies that did not file will likely get nothing.

Why This Matters for IFF Customers

Many of these products were hit with IEEPA‑based duties. For some importers, the potential refund exposure is six or seven figures.

Given the uncertainty around administrative refunds, the safest path is clear:

File a protective lawsuit now to preserve your right to recover IEEPA tariffs.

Recommended Next Steps

1. Identify all imports subject to IEEPA tariffs.

2. Calculate the total duties paid.

3. Consult trade counsel about filing a protective action.

4. Act before key deadlines pass.

The cost of filing is modest compared to the potential refund.

Bottom Line

The courts have opened the door for IEEPA tariff refunds—but only for companies that take action. IFF customers who paid these duties should strongly consider filing a protective lawsuit now to ensure they are not excluded from future refunds.

If you need a recommendation for a customs lawyer, contact our customer service team at customerservice@iffusa.com.