On December 15, 2025, the U.S. Court of International Trade (CIT) issued a pivotal decision affecting importers seeking refunds of tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The Court denied a motion by a consolidated group of plaintiffs (including Costco) that sought an injunction preventing U.S. Customs and Border Protection (CBP) from liquidating IEEPA‑tariffed entries.
The Court’s decision clarifies two key issues with major implications for importers:
- Refund Rights Remain Intact: The Court confirmed that importers do not need to file lawsuits before liquidation to preserve refund rights. The CIT has authority under 28 U.S.C. § 1581(i) to order CBP to reliquidate entries and issue refunds if the Supreme Court later strikes down the IEEPA tariffs.
- Protests Are Not the Main Challenge Vehicle: The CIT also held that the legality of IEEPA tariffs is not a protestable issue before CBP. While appeals may change this, protests should still be viewed as a protective measure — not the primary path to challenge the tariffs.
Recommended Strategy for Importers
Given this legal landscape, importers should take a two‑step approach to protect potential refund rights.
1. File a “Me Too” CIT Action Under 28 U.S.C. § 1581(i)
Importers should prepare to file individual “me too” lawsuits at the CIT — ideally well before the two‑year statute of limitations expires in early 2027. Filing now may provide strategic advantages:
- In past cases (e.g., refund claims after the Harbor Maintenance Tax was struck down in the 1990s), courts restricted initial refund eligibility to importers who had already filed CIT suits.
- The Government’s representation that it will not oppose reliquidation may apply only to current plaintiffs or those who have filed similar cases. Acting early could secure a stronger position if refund procedures later mirror those historical precedents.
2. Track Liquidation Dates and File Protective Protests
Importers should carefully monitor liquidation of all entries subject to the 2025 IEEPA tariffs. For each entry:
- Track liquidation to ensure awareness of the 180‑day protest window.
- File protective protests within 180 days — even though the CIT currently considers IEEPA tariff legality non‑protestable. This low‑cost safeguard ensures flexibility if subsequent rulings or refund programs require timely‑filed protests as a condition for refund eligibility.
Our Firm’s IEEPA Tariff Refund Support
We assist importers in implementing this two‑pronged strategy by:
- Identifying IEEPA‑Affected Entries and assessing monetary exposure.
- Tracking liquidation timelines and protest deadlines.
- Preparing and filing “me too” CIT lawsuits, including summons, complaint, and supporting materials. Coordinating with CBP and the courts to expedite refunds if the IEEPA tariffs are ultimately invalidated.
- Prepare and file administrative protests and if the tariffs are struck down, coordinate with CBP to expedite refunds.
Contact our customs and trade law team to evaluate your company’s exposure and preserve your right to potential IEEPA tariff refunds.
