On February 20, 2026, the Supreme Court invalidated tariffs imposed under the International Emergency Economic Powers Act—potentially unlocking $175 billion in refunds for importers. But the window to claim is closing, and the process is more complex than you might think. Here's exactly what you need to know to protect your money.
The Supreme Court Just Handed Importers a Massive Win
In Learning Resources, Inc. v. Trump, the Supreme Court ruled 6-3 on February 20, 2026, that the President does not have authority under the International Emergency Economic Powers Act (IEEPA) to impose tariffs without clear congressional approval. That single decision invalidated years of tariffs affecting China, Canada, Mexico, Brazil, and India—duties that CBP collected at roughly $133 billion by mid-December 2025, with total collections potentially reaching $175 billion once early 2026 entries are included.
For importers, this is extraordinary: money paid in tariffs is now recoverable. But here's the painful catch: unless you act now, your refund claim can disappear in a tangle of customs procedure and bureaucratic deadlines. The Court of International Trade has already expanded who's eligible—even importers whose entries have reached "final liquidation" (normally an unbreachable wall in customs law). Yet the system to actually process these refunds is still being built, and questions about who has to do what—and by when—remain murky.
This is why every importer needs to understand the new refund landscape right now, before CBP's yet-to-be-launched IEEPA system, before new tariff investigations, and before deadlines slip by.
Why IEEPA Tariffs Were Imposed in the First Place
To understand what you're recovering, you need to know what happened. Starting in early 2025, the Trump administration imposed tariffs on goods from China, Canada, Mexico, India, Brazil, and other nations—claiming emergency authority under IEEPA, a statute designed to handle crises like wars, terrorist attacks, or nuclear threats. The administration argued that trade imbalances and supply-chain vulnerabilities constituted an "emergency."
Importers challenged these tariffs immediately. The tariffs stacked up. By October 2025, roughly $100 billion in IEEPA duties had been collected. By December, that number had climbed to $133 billion. The final count—including tariffs through early 2026—could reach $175 billion.
But on February 20, 2026, the Supreme Court said "no." The statute doesn't give the President that power. The tariffs were unlawful. And on February 24, 2026, all IEEPA tariffs terminated at 12:00 AM Eastern Time.
That's when the refund question became real for thousands of importers.
Who Gets a Refund? (Almost Everyone Who Imported Under IEEPA)
Here's the critical legal shift: Judge Richard K. Eaton of the Court of International Trade ruled on March 4, 2026, that all importers of record whose entries were subject to IEEPA duties are entitled to the benefit of the Supreme Court's decision—with no exceptions for company size, import volume, or prior CBP dealings.
This is remarkably broad. It doesn't matter if you imported 10 containers or 10,000. It doesn't matter if you imported food, electronics, apparel, machinery, or anything else covered by the tariffs. If you paid IEEPA duties between the tariff implementation and February 24, 2026, you're in.
The countries affected include:
- China (the largest source of IEEPA duties)
- Canada
- Mexico
- Brazil
- India
Alone or in combination, if you imported from any of these countries and paid IEEPA duties, you're eligible. That's roughly every mid-size to large importer in America.
The Game-Changing CIT Amendment: Liquidated Entries Now Recoverable
Here's where the new refund window gets genuinely unprecedented. On March 27, 2026, Judge Eaton issued an amended order with a single, extraordinary provision: CBP must reliquidate entries even after "final liquidation"—the normally permanent status that closes an entry to any further examination or correction.
Let's be specific about why this matters. In normal customs procedure, an entry goes through these stages:
- Unliquidated → Entry is pending, CBP can still adjust duties
- Liquidated → CBP posts the final bill; you have one year to protest
- Finally Liquidated → One year has passed. The entry is closed. You cannot file a protest. You've lost your right to challenge anything.
Finally liquidated entries are supposed to be permanent. There's a reason: finality prevents endless litigation and allows importers to close their books. But Judge Eaton's March 27 order effectively pierces that finality for IEEPA duties across the board.
| Entry Status | Time to Protest | New IEEPA Refund Eligibility |
|---|---|---|
| Unliquidated | N/A (no duties assessed yet) | Yes — CBP removing IEEPA duties automatically |
| Liquidated (within 1 year) | Until liquidation + 1 year | Yes — normal protest mechanism applies |
| Finally Liquidated | Normally closed forever | Yes — CIT ordered reliquidation (NEW) |
This changes everything. Importers who believed they'd lost their chance to challenge IEEPA duties after final liquidation now have a recovery path—but only if they understand what to do next.
How the Refund Process Actually Works Right Now
Here's the hard truth: as of April 1, 2026, the refund machinery is still being built.
On March 4, 2026, Judge Eaton ordered CBP to begin paying refunds "immediately." But on March 6, the court suspended that "immediate compliance" requirement after a closed-door hearing. Translation: CBP said it couldn't actually do it yet.
What's happening instead: CBP is building a dedicated system called CAPE (Consolidated Administration and Processing of Entries), designed specifically to handle IEEPA refunds at scale. The target launch is approximately 45 days from early April, which likely means mid-May 2026. CAPE will have four components:
- Claim Portal — Importers submit refund claims electronically
- Mass Processing — Automated review and organization of claims
- Review and Reliquidation — CBP adjusts entries and recalculates duties
- Refund Issuance — Direct payment to importers via ACE or bank transfer
But between now and CAPE's launch, what do you do?
What to Do Right Now: Protect Your Claim
This is the critical window where most importers will either secure their refund or accidentally lose it. There are three immediate actions:
1. Identify and Document Every IEEPA-Liable Entry
You need to know exactly which entries paid IEEPA duties and what those duties were. Pull your entry summaries from ACE (Automated Customs Environment) or your customs broker's system. Filter for entries from these countries and date ranges:
- China: January 2025 – February 24, 2026 (Section 301, Section 232, and IEEPA overlapped; IEEPA is the portion being refunded)
- Canada & Mexico: January 2025 – February 24, 2026 (tariffs escalated multiple times under IEEPA)
- Brazil & India: Effective dates vary; check your entry details
Critical: You're looking for entries that explicitly show IEEPA duty charges. If your broker handled tariff reclassification after February 24, 2026, check for those adjustments too.
2. File a Protest for Any Entry Still Within One Year of Liquidation
This is insurance. If an entry was liquidated within the last year, you can still file a statutory protest under 19 USC § 1514. This preserves your right to challenge the IEEPA duties if CBP doesn't automatically refund them or if there's a dispute about the amount.
File the protest with CBP stating: "Protest of IEEPA duties applied to this entry under the International Emergency Economic Powers Act. Pursuant to the Supreme Court's decision in Learning Resources, Inc. v. Trump, 2026 WL [citation], these duties were imposed without statutory authority and must be refunded."
Include:
- Entry number
- Product description
- Applicable IEEPA duty rate
- Total IEEPA duties paid
- Reference to the CIT's March 27, 2026 order
File this immediately. You have one year from liquidation; don't wait for CAPE to launch.
3. Enroll in ACE's Electronic Refund System Now
CBP's new CAPE system will likely require ACE enrollment. If you're not already set up for electronic ACE transactions, contact your customs broker or CBP's Trade Division to:
- Register for ACE Secure Data Portal access (if you don't have it)
- Ensure your importer account is linked to an active bank account for ACE direct deposit
- Verify your organization's DUNS number and tax ID are current in the CBP system
This isn't optional. When CAPE launches and processes thousands of refunds daily, manual checks will be deprioritized. Electronic enrollment now means your refund processes faster.
What's Coming Next: CAPE, Deadlines, and Uncertainty
May 2026 — CAPE System Launch
CBP's CAPE portal is expected to open in May 2026. At that point, importers can submit refund claims electronically. The exact claims process hasn't been finalized, but expect to provide:
- Entry numbers
- Importer of Record ID
- IEEPA duty amounts paid
- Supporting documentation (entry summaries, duty statements)
Ongoing Section 301 Investigations
On March 11, 2026, USTR announced new Section 301 investigations into China, the EU, and 14 other countries. These investigations assess whether structural excess capacity and manufacturing practices in those countries are "unreasonable" or burden U.S. commerce. Section 301 investigations can result in new tariffs, potentially covering similar products.
Why this matters: If new Section 301 tariffs are imposed while you're still waiting for IEEPA refunds to be processed, your import costs may climb again. Don't assume recovery of IEEPA duties means your tariff exposure is over.
The Business Impact: What This Means to Your Bottom Line
For most importers, IEEPA refunds represent a genuine cash recovery. A mid-size importer of consumer electronics from China that paid 25% IEEPA duties on $10 million in goods would recover $2.5 million directly. That's a one-time restatement of cost of goods sold, a boost to working capital, or an opportunity to reinvest in inventory or operations.
But this assumes you claim it. Many importers will miss the deadline or the process entirely. CBP's refund system will process claims chronologically. Early filers will see refunds within weeks of CAPE's launch; late filers may wait months. And if you don't file a protest before the one-year window closes on your entry, you lose the most straightforward path to recovery.
| Scenario | Recovery | Deadline |
|---|---|---|
| Unliquidated entries | Full IEEPA duties removed by CBP (automatic) | CAPE system launch (May 2026) |
| Liquidated entries, within 1-year protest window | Protest filed; CBP reliquidates | 1 year from liquidation date |
| Finally liquidated entries | CIT reliquidation order (if enforced) | Unclear; claim via CAPE or litigation |
| Entries after missed protest deadline | Only via litigation at CIT | Case-by-case; expensive and uncertain |
The column labeled "Deadline" is the most important. If you miss that deadline, recovering your IEEPA duties becomes significantly harder and more expensive.
Common Mistakes to Avoid
Mistake 1: Assuming CBP will automatically refund everything. CBP will process unliquidated entries automatically. But liquidated and finally liquidated entries require action on your part—either a protest or a claim via CAPE.
Mistake 2: Confusing IEEPA duties with Section 301 duties. Tariffs from multiple statutory authorities (IEEPA, Section 232, Section 301) may have been imposed on the same products simultaneously. The Supreme Court ruling covers only IEEPA duties. Other tariffs remain in effect. Ensure your protest or claim specifically references IEEPA.
Mistake 3: Filing the protest without documentation. A protest that simply states "I want a refund" will be rejected. Include the entry number, IEEPA duty amount, and reference to the Supreme Court decision.
Mistake 4: Waiting for CAPE to launch. Protesting now, while you're within the one-year window, is far safer. CAPE's actual launch date isn't guaranteed, and its processing timeline is uncertain.
The Path Forward: Act Within 30 Days
Here's your 30-day action plan:
Week 1: Audit your entries from January 2025 onward. Identify which ones paid IEEPA duties and which ones are still within the one-year protest window.
Week 2: File protests for all liquidated entries that are within the protest period. Work with your customs broker; most understand the IEEPA refund landscape by now.
Week 3: Enroll in ACE's electronic refund system. Verify your bank account information is current.
Week 4: Set a calendar reminder for mid-May when CAPE is expected to launch. Prepare your entry documentation for claims submission.
If you're a larger importer, you might recover millions. If you're smaller, it might be five or six figures. Either way, it's money that was legally yours but mistakenly paid. The refund window is open—but it won't stay open forever.
One Final Thought: The Bigger Trade Picture
The IEEPA refund opportunity is massive, but it's also temporary. Even as CBP builds CAPE and processes refunds from 2025 tariffs, the Trump administration is launching new Section 301 investigations that could result in fresh tariffs. The trade policy landscape is shifting rapidly, and importers who understood IEEPA tariffs well enough to challenge them are the ones most likely to stay ahead of what comes next.
Getting your refunds right requires understanding both the process and the underlying customs law. That's what separates importers who recover millions from those who miss the window entirely.
This article is for informational purposes only and does not constitute legal, tax, or customs advice. Consult a licensed customs broker or trade attorney for guidance specific to your organization's entries and refund strategy.