Court Clears Way for Importers to Recover IEEPA-Imposed Duties
A ruling enables importers to recover duties imposed under the International Emergency Economic Powers Act.
Why it matters: The decision affects trade compliance and duty recovery claims, critical for legal teams advising on customs and international trade matters. This clarifies liability and refund procedures for importers burdened by unlawful tariffs.
- On Feb 20, 2026, the US Supreme Court ruled IEEPA does not authorize tariffs, invalidating related executive orders.
- On Mar 4, 2026, the Court of International Trade ordered Customs to reliquidate entries excluding IEEPA duties and refund importers.
- The tariffs invalidated included 10% ad valorem duties under Section 122 of the Trade Act of 1974 applied via IEEPA.
- The Department of Justice is expected to appeal the CIT's refund order, leaving uncertainty about final outcomes.
On February 20, 2026, the U.S. Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. Chief Justice John Roberts emphasized that "IEEPA contains no reference to tariffs or duties," invalidating several executive orders that imposed tariffs under IEEPA, including the reciprocal and fentanyl-related duties.
Following this, on March 4, 2026, the U.S. Court of International Trade (CIT) issued an order directing U.S. Customs and Border Protection (CBP) to liquidate any unliquidated entries without applying IEEPA duties. The CIT also ordered reliquidation of entries that were liquidated but not yet final, requiring removal of these unlawful duties. PwC noted that this order mandates CBP "to issue refunds of tariffs imposed under IEEPA," providing importers a clear path to recover these sums.
The invalidated tariffs largely involved 10% ad valorem duties imposed via Section 122 of the Trade Act of 1974 but applied under IEEPA authority. The Department of Justice is expected to appeal the CIT's refund order, which may prolong resolution. However, the current rulings reinforce that importers subject to these duties can seek reimbursement, shifting compliance and refund efforts for customs law practitioners and importers alike.
By the numbers:
- February 20, 2026 — Supreme Court ruling invalidates IEEPA tariffs
- March 4, 2026 — CIT order directs CBP to remove IEEPA duties and issue refunds
- 10% — Ad valorem tariff rates imposed under Section 122 of the Trade Act found unlawful
Yes, but: The Department of Justice plans to appeal the Court of International Trade's refund order, which may delay final resolution and complicate recovery efforts for importers.
What's next: Await the outcome of the DOJ's appeal to the CIT order, which could affect the timeline and scope of duty refunds.