CIT Orders CBP to Process IEEPA Refunds; Order Expanded But Pause Continued

Published March 5, 2026 | Updated March 22, 2026

Key Points

• The U.S. Court of International Trade ordered CBP to liquidate unliquidated entries without IEEPA duties.
• CBP must reliquidate entries still within the protest period and remove IEEPA tariffs.
• The order applies nationwide to all importers, not only named plaintiffs.

• In a March 6 filing, CBP informed the Court of International Trade that it is not yet ready to process court-ordered IEEPA tariff refunds. The agency stated that new Automated Commercial Environment (ACE) functionality may be ready within about 45 days to support the refund process.

• Also on March 6, 2026, the CIT suspended immediate compliance with its earlier refund directive, acknowledging CBP’s need to develop new administrative and technical procedures.
• Latest update: On March 20, the CIT expanded the amended refund order to cover all IEEPA duties, including those on imports from Brazil and India, but continued the pause on immediate enforcement.

O​​​​​​​​​​​​​n March 4, the U.S. Court of International Trade (CIT) issued an order directing U.S. Customs and Border Protection (CBP) to process liquidation and reliquidation of entries affected by tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

The directive requires CBP to liquidate all unliquidated entries without regard to IEEPA duties and to reliquidate entries that have liquidated but are not yet final. The order applies to all importers and represents the court’s first comprehensive action to ensure uniform handling of IEEPA refund matters following the Supreme Court’s February ruling.

In the court’s words:

“Any liquidated entries for which liquidation is not final shall be reliquidated without regard to IEEPA duties.”

Although the court denied the government’s request to stay the order, further proceedings and appellate review may affect implementation and scope.

Latest Updates

• On March 6, CBP filed a declaration with the CIT stating that the agency is not yet prepared to process the court-ordered IEEPA tariff refunds.
• Also on March 6, the CIT paused its earlier order for immediate tariff refunds, giving CBP time to develop an administrative refund process for IEEPA duties. In its March 12 court filing, CBP provided the CIT with an update on the development of its Consolidated Administration and Processing of Entries (CAPE) system within ACE, detailing the phased rollout that will allow electronic submission, validation, and processing of IEEPA refund claims.
• On March 20, 2026, the CIT expanded the refund order to include tariffs on Brazil and India that were applied on top of reciprocal tariffs. The original order covered IEEPA and reciprocal tariffs involving Canada, Mexico, and China. The new order confirms that Brazil and India tariffs are also eligible for refunds. Additionally, the pause on immediate implementation remains in effect, meaning CBP is still not required to issue refunds at this time. The court also directed CBP to submit a status report by March 31 on its progress in setting up a refund process.

Court Order on Entry Processing

Unliquidated Entries

CBP must liquidate all unliquidated entries without assessing IEEPA duties. Entries that have not reached final liquidation may be corrected through the standard liquidation process.

Liquidated Entries Within the Protest Period

CBP must reliquidate entries that liquidated with IEEPA duties but remain within the statutory protest period. Those duties must be removed as part of the reliquidation.

Finally Liquidated Entries

The order does not address entries that are beyond the protest period. The court scheduled additional proceedings to discuss implementation and the remaining categories of entries.

Court’s Reasoning

According to an International Trade Today (ITT) article (subscription required), Judge Richard K. Eaton stated that the court has exclusive jurisdiction over tariff matters and authority to issue nationwide relief in this context. He cited the need for uniformity in customs decisions and indicated that centralized handling of IEEPA refund matters would promote consistent outcomes.

The court denied the DOJ’s oral motion to stay the order pending appeal. However, appellate review remains likely, including questions regarding the scope of the court’s authority.

Previous Update: CBP Not Yet Ready to Process Refunds

In a March 6 filing with the CIT, CBP stated that it is not yet ready to process the court-ordered refunds of IEEPA tariffs. The agency expects to update the Automated Commercial Environment (ACE) to support the process within about 45 days.

CBP explained that the scale of the refunds makes the process complex. As of early March, more than 330,000 importers filed over 53 million entries that included IEEPA duties.

Under the current system, refunds are processed one entry at a time. CBP said this would require over 53 million separate refunds, which would create major delays.

To address this issue, CBP plans to add new ACE functionality that would allow refunds and interest on an importer basis, instead of being issued for each individual entry.

CBP outlined a possible process that could include the following steps:

• Importer declaration in ACE. Importers submit a declaration identifying entries where IEEPA duties were paid.
• ACE validation and recalculation. ACE checks the entries and recalculates the duties without the IEEPA tariffs, including interest.
• CBP verification. CBP reviews the declaration and confirms the refund calculations.
• Automated liquidation or reliquidation. ACE completes the liquidation or reliquidation of the affected entries.
• Refund aggregation. ACE groups refunds and interest by importer and liquidation date.
• Refund certification and payment. CBP certifies the refund and the U.S. Department of the Treasury issues the electronic payment.

CBP also noted that operational, legal, and technical factors may still affect the final process. The agency indicated that issuing refunds to all affected importers may take several months or longer.

Importer Recommended Actions

1. Identify affected entries
Start by reviewing entry records to find shipments that were assessed IEEPA duties and are either still unliquidated or liquidated but not yet final (within the protest window).

2. Monitor liquidation activity
Keep an eye on entry updates to confirm that IEEPA duties are being removed. This may appear as:

• Liquidations issued without IEEPA duties, or
• Reliquidations removing duties previously assessed.

If IEEPA duties still appear, the entry may need further review.

3. Protect rights for final entries
The order does not automatically reopen entries that are already final. Importers should evaluate, with trade counsel, whether protests, court actions, or other statutory remedies may still be available.

Background

The ruling follows the February decision by the U.S. Supreme Court concluding that IEEPA does not authorize tariff measures. The appellate court recently issued its mandate, returning refund-related proceedings to the trade court. The March 4 order represents the first broad directive to CBP regarding liquidation and reliquidation of affected entries.

What to Watch

• Whether the government files an expedited appeal
• Whether the Federal Circuit grants a stay
• CBP guidance on implementation procedures and timing
• Clarification on treatment of finally liquidated entries

Importers and customs brokers should monitor further court developments and CBP communications as the matter proceeds.

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