IEEPA tariff refunds: What importers should do now

Tariff volatility continues to define global trade, influenced by geopolitical pressures, national security objectives, and broader use of executive authority under U.S. trade statutes.

In 2025, President Trump leveraged the International Emergency Economic Powers Act (IEEPA) to impose tariffs on issues ranging from immigration to political concerns. That legal framework changed on February 20, 2026, when the Supreme Court ruled that IEEPA does not authorize the President to impose tariffs.

The decision did not create automatic refunds, nor did it limit the government’s ability to pursue tariffs under alternative statutory authorities.

Instead, affected importers may pursue duty recovery through administrative and judicial processes. U.S. Customs and Border Protection (CBP) has proposed a new declaration-based refund process within the Automated Commercial Environment (ACE) system, although traditional mechanisms such as protests or litigation may still apply, depending on entry status and final implementation guidance.

CBP Plans to Use ACE System for IEEPA Tariff Refunds

On March 6, 2026, CBP disclosed in court filings that it is not currently able to comply with the Court of International Trade’s order to begin issuing refunds of IEEPA tariffs. According to CBP:

• Approximately $166 billion in IEEPA duties have been collected
• More than 330,000 importers are affected
• Over 53 million import entries include IEEPA tariffs

Calling it the largest customs refund event ever attempted, CBP stated that manually removing IEEPA duties and issuing refunds on an entry by entry basis would require millions of labor hours and extensive system updates, making immediate compliance impractical.

Instead, CBP is proposing a new automated refund process through ACE. Under this approach:

• Importers would submit a declaration identifying affected entries
• ACE would recalculate duties without IEEPA tariffs
• Refunds would be aggregated and issued electronically at the importer level

CBP estimates it will need at least 45 days to build this functionality.

Critically for importers, refunds will not be automatic. CBP has indicated that refund requests will be audited, and importers must be prepared to substantiate:

• Proper tariff classification
• Declared value
• Country of origin
• Entry and liquidation status, at the line item level

This development reinforces that refund recovery will depend on data quality, documentation discipline, and timing.

Ongoing Trade Enforcement and Geopolitical Risks

The IEEPA ruling did not mark a retreat from tariff enforcement. Shortly after the Supreme Court ruling, the administration invoked Section 122 of the Trade Act of 1974, imposing a temporary tariff of 10% for 150 days. Officials have indicated the rate could increase to 15% and announced that the U.S. Trade Representative will initiate new Section 301 investigations, which could result in additional tariffs based on origin or classification.

Even as one tariff authority is limited, others remain available, signaling continued tariff volatility. Meanwhile, geopolitical risks and disruptions to major shipping lanes in the Middle East add further uncertainty, accelerating the push for diversified sourcing and flexible logistics. Together, these dynamics highlight the need for disciplined compliance and integrated, data-driven trade and supply chain planning.

What Importers Should Do Now

Tariff exposure will continue to fluctuate as enforcement tools, legal interpretations, and geopolitical pressures change. Now that the IEEPA tariffs have been ruled unconstitutional and implementation guidance remains uncertain, importers should take a measured but proactive approach:

• Assess IEEPA Tariff Exposure – Identify affected entries, quantify duties paid, and evaluate refund potential
• Prepare Refund Documentation – Organize entry data, liquidation status, and supporting classification, valuation, and origin records
• Monitor Liquidation Timelines – After customs entries liquidate (typically 314 days post-entry), recovery pathways generally move from administrative corrections to filing protests (within 180 days) and potential litigation
• Prepare for Audits – CBP has stated refund claims will be reviewed, making consistent data, clear sourcing, and traceable documentation a priority

We Can Help

The era of predictable global trade is over. Importers now face a narrow window to pursue potential IEEPA duty recovery while continuing to manage tariff volatility under other statutory authorities.

The Elliott Davis team can assist importers with:

• Tracking CBP guidance and court developments
• Identifying and quantifying IEEPA exposure
• Preparing refund-ready documentation
• Monitoring liquidation timelines and recovery options
• Designing tariff mitigation strategies, including tariff engineering, trade program optimization, and inventory structuring

For companies struggling to determine what applies to them or how to address these requirements at scale, timely support can improve recovery outcomes.

Reach out to the Elliott Davis Manufacturing and Distribution team to discuss practical steps to ready your organization for what lies ahead.

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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.