IEEPA Tariff Refunds and the Importance of Timely CBP Protests

In need of assistance? Schedule an intake meeting with our office.

With the Supreme Court’s decision to overturn the tariffs imposed under the International Emergency Economic Powers Act (IEEPA), and subsequent directives from the Court of International Trade (CIT) addressing liquidation and re-liquidation of affected entries, importers are now evaluating how best to preserve their rights to obtain refunds of previously paid IEEPA duties. In this evolving environment, filing timely protests with U.S. Customs and Border Protection (CBP), where applicable, is an important and often necessary step in protecting those rights.

In addition to the administrative refund mechanisms being developed by CBP, importers should carefully evaluate protest deadlines and determine whether liquidated entries involving IEEPA duties should be protested. Protests remain an important procedural tool for preserving the ability to obtain administrative review of CBP’s liquidation decisions, particularly where duties have already been assessed and liquidation has occurred.

CBP has indicated that it is not currently able to immediately process court-directed refunds using existing systems and is working to develop enhancements to the Automated Commercial Environment (ACE). CBP has further described a planned system known as the Consolidated Administration and Processing of Entries (CAPE), which is intended to support certain refund and entry processing functions. However, CBP has also acknowledged that CAPE remains under development and will require additional testing and phased implementation before becoming fully operational.

Because the administrative refund process is still being developed, protests remain one of the most important mechanisms available to importers to ensure that liquidated entries involving IEEPA duties can be reviewed at the administrative level. Importers generally have 180-days from the date of liquidation to file a protest with CBP. Filing a protest allows an importer to formally challenge CBP’s liquidation decision, including the assessment of duties, and preserves access to administrative review procedures.

CBP’s proposed CAPE system is expected to operate in phases and is currently described as partially developed. Phase 1 is expected to focus on unliquidated entries and entries still within the 90-day voluntary re-liquidation period. Certain categories of entries, including those subject to reconciliation, drawback claims, or pending antidumping/countervailing duty instructions, are expected to be excluded from initial processing. CBP has also indicated that even where entries fall within scope, refunds would not necessarily be issued immediately, but would instead occur through the normal liquidation or re-liquidation process. Given these limitations, protests provide an important and immediate way for importers to preserve their rights while CBP continues to develop its administrative framework.

CBP has also acknowledged that CAPE is still under development and that no component has been fully implemented. As a result, additional changes, delays, or refinements to the system remain possible, and the timing of any broader refund process remains uncertain.

In light of this uncertainty, importers should take proactive steps such as ensuring ACE account access is active, monitoring liquidation dates, and identifying entries that may involve IEEPA duties. Importers should also strongly consider whether filing a protest is appropriate within the statutory 180-day period to preserve administrative rights where liquidation has occurred.

While CBP has suggested that administrative processes may eventually streamline handling of affected entries, importers should not wait for system implementation before taking action where deadlines are approaching. Protests are a critical procedural safeguard that ensure liquidation decisions remain open to administrative review under the customs laws.

Ultimately, while CBP’s ACE and CAPE developments may eventually impact how IEEPA-related entries are processed, those systems remain under development and are not yet fully operational. Until then, timely protests remain a critical step importers can take to preserve their rights and help ensure CBP review of liquidation decisions involving IEEPA duties.

How We Can Help

If you are unsure about your refund strategy or whether a protest should be filed, we can help. Give our office a call today at (917) 546-6997 or schedule an intake meeting, we would be happy to speak with you.

Ready to Learn More About CBP, OFAC,

BIS, FWS, and FDA?

We have over one hundred videos in our educational library on our YouTube channel related to importing, exporting, US Customs, BIS, OFAC, FWS, FDA, NFTs, and so much more. Subscribe to our channel now to stay up to date on the latest on these topics!

Our law firm helps growing companies who import and export comply with government regulations. We love what we do and we take our oath of confidentiality over your matters very seriously. How much? Watch this video to learn about it. CLICK HERE 

 Wondering "why should you have an attorney on your side?" Click here to watch one of our attorneys, Susan Steinman, break down the critical benefits as to why you want to have one on your side - whether you hire us to help you or another law firm.

Have questions? We are determined to help you.

We listen carefully to clients to ensure our understanding of the legal issues at hand, their factual context, and any limitations that might impact a chosen strategy. Feel free to connect with us using the contact form at the bottom of the Home page or send us an email at contact@clarkespositolaw.com.