The U.S. Supreme Court has ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. As a result, the tariffs enacted under IEEPA, including the broad reciprocal tariffs imposed in April 2025, have been deemed unlawful.
What This Means for Importers
Companies that paid tariffs under IEEPA may be eligible to seek refunds, which are generally processed by U.S. Customs and Border Protection (CBP) through the ACE system. However, the Court did not prescribe a process for returning amounts collected under the IEEPA-based tariffs.
CBP is expected to issue implementation guidance addressing documentation requirements, procedural steps, and timing.
Why Preparation Matters Now
Once refund guidance is released, importers will need to quickly substantiate amounts paid and clearly link those amounts to specific entries. Organizations that have already organized their documentation will be better positioned to act within required timeframes.
Steps Importers Can Take Now
- Identify all entries subject to IEEPA duties, including entry numbers, dates, Chapter 99 lines, and applicable duties
- Confirm entry and liquidation status and quantify IEEPA duties paid
- Organize supporting documentation to audit classification, valuation, and country of origin
- Monitor the Cargo Systems Messaging Service (CSMS) at cbp.gov and register to receive real time CBP updates
- Segment entries by liquidated and unliquidated status, as refund paths are expected to differ
- Confirm enrollment in ACE ACH refunds, as refunds will only be issued electronically
We Can Help
The Elliott Davis team can assist importers in monitoring CBP guidance and preparing the documentation needed to pursue potential IEEPA tariff refunds as procedures are announced.
The information provided in this communication is of a general nature and should not be considered professional advice. You should not act upon the information provided without obtaining specific professional advice. The information above is subject to change.
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