In the latest developments regarding tariffs paid under the International Economic Emergency Powers Act (“IEEPA”), the U.S. Department of Justice (“DOJ”) has formally appealed the U.S. Court of International Trade’s (“CIT”) April 17, 2026, universal injunction ordering refunds to all importers to the U.S. Court of Appeals for the Federal Circuit (“Federal Circuit”). The DOJ has also petitioned the Federal Circuit to direct the CIT that U.S. Customs and Border Protection (“CBP”) Commissioner Rodney Scott may not be compelled to testify before the CIT regarding CBP’s anticipated timing to comply with IEEPA refunds for all entries.
The CIT’s April 17, 2026 injunction ordered CBP to refund IEEPA duties paid on three categories of entries: (1) unliquidated entries; (2) liquidated entries for which liquidation is not final; (3) finally liquidated entries (entries more than 90 days past liquidation). The CIT had initially suspended immediate application of the injunction but recently lifted that suspension.
As previously reported, the DOJ made its intention to appeal the April 17th injunction, stating that the injunction, which directed refunds of all IEEPA duties exceeds the CIT’s authority because CBP cannot reliquidate or refund duties without a court order. The DOJ distinguished between three categories of entries for which IEEPA duties were paid: (1) unliquidated or nonfinal entries; (2) entries that are finally liquidated and the importer has filed a case with the CIT; (3) entries that are finally liquidated and the importer has not filed a case with the CIT.
For category (1) entries, CBP has begun processing refunds through Phase 1 of the Consolidated Administration and Processing of Entries (“CAPE”). The DOJ’s position with respect to categories (2) and (3) is that CBP is not permitted to reliquidate finally liquidated entries absent a court order. For importers that have filed cases at the CIT challenging the collection of IEEPA tariffs, i.e. category (2) entries, DOJ noted that the CIT has declined to issue the required importer-specific relief necessary for CBP to process refunds. For importers that have not filed cases at the CIT, the DOJ’s apparent position is that CBP cannot lawfully refund the IEEPA duties paid because the importer has not filed a case. This third category of entries will likely be at the heart of the Federal Circuit appeal. As the DOJ stated in its petition to the Federal Circuit regarding Commissioner Scott’s testimony, federal courts are limited to administering complete relief between the parties in litigation.
In the memorandum to the Federal Circuit, the Government has affirmed its position that it cannot lawfully refund paid IEEPA duties on finally liquidated entries without a court order specific to each importer. If the Federal Circuit agrees with the Government, then importers will likely be required to file complaints with the CIT to seek refunds for IEEPA duties paid on finally liquidated entries. However, at this time, all indications are that CBP will continue to operate CAPE Phase 1 and process refunds for unliquidated or nonfinal entries. We recommend contacting your Husch Blackwell attorney to determine the best approach for your situation.
The Husch Blackwell International Trade and Supply Chain team will continue to monitor and provide updates on this case as they become available. If you have company specific questions or concerns, please contact your Husch Blackwell attorney.