The Court of International Trade (CIT) issued an order that implies (without specifically using the term “refund” in the order) that refunds related to IEEPA tariffs are owed for both liquidated and unliquidated entries. Although many expect an appeal, Wednesday’s hearing provided critical insights for importers of record (IOR) impacted by the Learning Resources, Inc. et al. v. Trump SCOTUS decision. While the order was issued in response to the Atmus Filtration, Inc. V. United States case, it applies to all IORs saddled with the now-illegal IEEPA tariffs.
Judge Eaton was very direct in his commentary to the Government about both the timing and approach to refunds saying, “The Supreme Court told you what your position is. Your position is we’re going to refund this money. It can’t be anything else.1 ” As part of the discussion about the complexity and potential burden of refunding IORS by way of individual claims with the CIT, he commented on how technology could help with the process of refunds without the need for individual and manual review.
The CIT is set for a conference Friday to discuss IOR with liquidated entries that have not filed suit. Judge Eaton made it clear that he doesn’t “want to require people that have a claim to file suit”, which would avoid nearly 2,000 cases in the coming months.
Even given this order, the timing of refunds is still very much uncertain. While the Government may be fighting an automatic or expedited refund process, the longer they stall refunds the greater the interest owed to importers.
- 1https://www.cit.uscourts.gov/sites/cit/files/20260304-%2026-1259-RKE.mp3