On the 20th of February, the tariff decision was made to where, ” IEEPA does not authorize the President to impose tariffs.” This has been a main subject of many people’s worry in the supply chain and logistics industry for the past months. This ruling coming to light, a new question has arisen, that being, when would everyone’s refunds be coming or will we have to file PSC?
Addressing the “Liquidation Doubt”
The most significant source of anxiety for trade departments has been the “finality of liquidation.” Under standard customs law, once an entry liquidates, the duty assessment is typically final unless a protest is filed within 180 days.
However, the CIT had previously made a move to quell these fears. In a ruling back on December 15thm 2025, (AGS Company Automotive Solutions v. United States), the court stated:
- “Don’t Worry About Liquidations”: The CIT stated that the government had taken an “unequivocal position” that liquidation would not bar the availability of refunds following a final court decision. The court noted that the government would be “estopped” from arguing otherwise later.
- Authority Over CBP: The CIT explicitly confirmed it has the statutory authority to order reliquidation. The court was quoted as saying it can essentially “tell CBP what to do,” ensuring that even entries that have been “closed” by Customs can be reopened for refund processing.
The CIT vs. CBP: Who’s in Charge?
There is significant skepticism about whether a court can realistically force the massive CBP bureaucracy to process billions in refunds. The CIT has clarified that it has the authority to order CBP on how to process these refunds under its residual jurisdiction.
While we await formal instructions from the CIT, the industry is preparing for two potential outcomes:
- The “Auto-Refund” Route: A universal order identifying all IEEPA entries in the ACE system and issuing checks.
- The “Manual” Route: Importers may still be required to file Post Summary Corrections (PSCs) for unliquidated entries or protests for liquidated ones to trigger the payment.
While the CIT has the same enforcement powers as a federal district court, including issuing injunctions and holding parties in contempt, its ability to enforce those decisions ultimately relies on the cooperation of the executive branch.
Some things that can be done include the CIT can hold government agencies, officials, or civil servants in civil contempt, which can involve daily fines until the order is obeyed. In a rare instance, the court can issue a writ of mandamus, a rarely used order that legally compels a government official to perform a duty required by law. Other options include Sanctioning Attorneys and Vacatur and Stays.
The Looming Deadlines
While the CIT provides a safety net, importers must not ignore the clock. Under 28 U.S.C. § 2636(i), the statute of limitations for filing a suit in the CIT is two years from the date the cause of action first accrued. Since the IEEPA tariffs were rolled out in phases starting in February 2025 (the “Fentanyl” tariffs) and April 2025 (the “Reciprocal” tariffs), the absolute deadline to file a protective lawsuit if a universal refund is not granted will be January to April 2027.
Some companies such as Costco and FedEx have already filed to ensure they are “on a list” in case the administration tries to limit refunds to only active litigants,
Immediate Recommendations for Importers
The legal “win” is in hand, but the administrative “collection” is just beginning. To prepare for the CIT’s upcoming instructions, importers should:
- Download All ACE Data: Ensure you have a full record of every IEEPA-flagged entry from February 2025 to today.
- Preserve Documentation: Gather all CF-7501 Entry Summaries and proof of duty payments.
- Monitor Protest Windows: While the CIT says it can reliquidate, filing a protest within 180 days of liquidation remains the “gold standard” for preserving your rights.
The CIT has the power, the Supreme Court has the precedent, and the DOJ has obligations. It is simply a matter of following the roadmap the CIT will issue in the coming weeks.
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Here at TradeFlex, we can guide and help overcome the possible issues that may arise in the future and provide a long-lasting partnership that will help overcome any obstacle. With our El Paso and Valley locations, we deliver the best dedicated and reliant teams no matter your location. We are always ready to share a helping hand. Visit us at https://trade-flex.com/ for more details.
