The International Trade Blog

SCOTUS Strikes Down IEEPA: How to Prepare for Tariff Refunds

Written by Kari Crane | December 17, 2025

In a landmark ruling in V.O.S. Selections v. United States, the Supreme Court of the United States struck down last year’s IEEPA-based “fentanyl” and “reciprocal” tariffs, holding that the President exceeded his authority under the International Emergency Economic Powers Act (IEEPA).

We recently hosted a webinar breaking down what this decision means in practice, including how refund procedures may unfold and what importers should be doing now. You can watch the full recording here

Since this article was first published, additional guidance from trade experts and early court activity has provided more clarity—particularly around how refunds may be administered, what U.S. Customs and Border Protection (CBP) can realistically handle, and what steps importers should prioritize right now.

What We’ve Learned Since the Ruling

Since the Supreme Court’s decision, a clearer picture has begun to emerge, but it’s not a simple one.

Refunds appear increasingly likely, but they will not be fast or automatic.

CBP has indicated that the scale of the task is significant, involving millions of entries, hundreds of thousands of importers, and billions of dollars in duties. As a result, the agency will need time to build a workable refund process, and early indications suggest that process may require active participation from importers.

In particular, companies should expect that:

  • Refunds may require detailed, entry-level data submitted by the importer, not just reliance on CBP’s internal records
  • The process may take weeks or months to fully implement
  • Both unliquidated and liquidated entries may ultimately be eligible, but the path to recovery could differ
  • Many companies are already filing Court of International Trade (CIT) actions as a protective measure

The takeaway is straightforward: companies that organize their data and act early will be in a much stronger position if and when refunds begin.

What This Case Does (and Does Not) Affect

Only the IEEPA-based tariffs are invalidated.

Other major trade programs remain fully in effect:

  • Section 301 tariffs on Chinese-origin goods
  • Section 232 national security tariffs (steel, aluminum and derivatives)
  • The suspension of de minimis eligibility

In addition, the administration quickly replaced the IEEPA tariffs with a new Section 122 tariff, set at 10% on most imports (with some exceptions, such as USMCA-compliant and in-transit goods), which is currently the operative framework through the end of July.

So while the legal authority behind last year’s IEEPA duties has been struck down, overall tariff exposure for many importers remains elevated.

Step 1: Document Every IEEPA Tariff Paid

Even though the Supreme Court has struck down the IEEPA tariffs, the most important step for importers has not changed:

You must quantify your exposure.

If refunds are ultimately ordered—and lower courts establish a repayment mechanism—you will need precise, entry-level documentation. Rough estimates will not be enough.

Start by gathering:

  • All 2025 entries subject to IEEPA tariffs
  • ACE reports showing HTS codes beginning with 9903.01 or 9903.02
  • Duty amounts paid
  • Corresponding entry summaries and broker records
  • Liquidation status for each entry

Update your ACE data every few weeks. Protests or court actions may hinge on accurate duty records.

Step 2: Monitor Liquidation Dates, Deadlines Have Already Started

Refund claims for customs duties are typically tied to a key event: the liquidation of your entry. Liquidation is when U.S. Customs and Border Protection (CBP) finalizes the amount of duties owed on an import.

Here’s why liquidation matters:

  • Once an entry liquidates, you have 180 days to file a protest.
  • Miss that window and your refund right is permanently lost.
  • CBP has been liquidating many 2025 entries much sooner than the standard 314-day cycle.

In other words: some of your entries may already be liquidating. And many more will hit that point between December 2025 and late 2026.

Importers should be checking liquidation status at least monthly; weekly is better.

If lower courts determine that refunds must be pursued through standard CBP protest procedures, importers who failed to monitor liquidation dates could find themselves time-barred.

Importers may also want to explore additional administrative options for unliquidated entries. These include requesting extensions of liquidation or filing Post Summary Corrections (PSCs) to remove IEEPA duties. While CBP has not yet provided clear guidance on whether these approaches will be broadly accepted, they remain important tools to discuss with your customs broker.

Step 3: File Protests, the Primary Path to Refunds

Filing protests under 19 U.S.C. §1514 is the traditional and most widely used path for seeking refunds of duties. CBP can accept your protest and may choose to suspend it pending a court decision on refunds. This is what CBP did during the 2021 protests over certain Section 301 tariffs.

Getting your protest in early may:

  • Preserve your rights
  • Speed up any future refund
  • Reduce the risk of missing entry-specific deadlines

Some importers are filing one protest per importer-of-record number every few months to catch liquidated entries as they occur.

While protests remain a primary tool for preserving refund rights, it is still unclear whether CBP will ultimately rely on the protest process for all refunds or implement a separate administrative solution. Filing protests now should be viewed as a risk management step, helping ensure you do not miss statutory deadlines while the broader refund process is still being defined.

Step 4: Consider (With Counsel) Whether Court Action Is Right for You

Since the Supreme Court’s decision, filing actions in the Court of International Trade has moved from a theoretical option to an active strategy. Thousands of importers have already filed CIT actions to preserve their rights to refunds.

In many cases, these filings are not a replacement for administrative action—they are a protective measure. Companies are using them to ensure they remain eligible for refunds even if entries liquidate or if administrative processes are delayed.

As a result, many importers are now pursuing a dual-track strategy:

  • Filing protests for liquidated entries
  • Evaluating or filing CIT actions to preserve broader rights

This approach reflects the reality that the refund process is still evolving, and companies want to avoid being locked out due to timing or procedural issues.

Operational Considerations Importers Often Miss

As companies focus on legal strategy, several practical details are often overlooked—but they can have a direct impact on whether and how refunds are received.

Importer of record matters

Refunds are generally issued to the importer of record listed on the entry. If your company is not listed, you may not be eligible to receive the refund directly.

Refunds will likely be electronic

CBP has been moving away from paper checks. Importers should confirm they are properly set up in the system to receive refunds electronically.

Your customs broker is a key partner—but not the decision-maker

Brokers will play an important role in pulling data, filing protests, and helping navigate the process. But the importer remains legally responsible. Staying actively engaged is critical.

Contracts may determine who ultimately keeps the refund

Even if your company receives the refund from CBP, your contracts with suppliers, distributors, or customers may determine who is entitled to that money. If your agreements are silent on tariffs or refunds, this could become a point of dispute.

Tariffs Are Shifting. Not Disappearing.

Even as importers prepare for potential refunds, tariff exposure isn’t going away. New tariffs are already in place, and additional actions under Sections 301 and 232 are likely.

This isn’t a one-time recovery effort—it’s an ongoing compliance challenge.

To stay ahead, companies need clear, reliable visibility into how tariffs apply to their products and the ability to adapt quickly as rules change.

Shipping Solutions makes that easier.

Our Import Controls Software and Product Classification Software work together to help you accurately assign HTS codes and instantly identify applicable tariffs, duties, and restrictions. Instead of relying on disconnected spreadsheets or manual research, you get a centralized system for managing tariff exposure across your product catalog.  

In a fast-changing trade environment, better classification and tariff tracking don’t just improve efficiency—they help reduce risk, prevent costly errors and keep your business compliant.

Like what you read? Join thousands of exporters and importers who subscribe to Passages: The International Trade Blog. You'll get the latest news and tips for exporters and importers delivered right to your inbox.

This article was first published in December 2025 and has been updated to include current information, links and formatting.