On March 19, 2026, at a closed settlement conference, the U.S. Court of International Trade (CIT) and parties in Atmus Filtration, Inc. were unable to reach a resolution on relief from International Economic Emergency Powers Act of 1977 (IEEPA) tariffs on entries that are liquidated and final. Importers who have paid IEEPA tariffs that have already been liquidated should contact legal counsel in case finalization happens prior to the finalization of U.S. Custom and Border Protection (CBP)’s new refund system.
Background
CIT Judge Richard K. Eaton ruled, in Atmus Filtration, Inc. v. United States, that CBP should immediately begin the refund process for the tariffs imposed under IEEPA that the U.S. Supreme Court had previously found unconstitutional. The orders require CBP to return the duties collected:
- Liquidating all unliquidated entries without the imposition of IEEPA tariffs and
- Reliquidate all previously liquidated entries “for which liquidation is not final” without the IEEPA tariffs.
The orders were silent on the refund process, if any, for those entries on which IEEPA tariffs were imposed and have been liquidated and finalized.
Following the settlement conference, Judge Eaton issued an order (March 20 Order) amending his previous instructions to be inclusive of “all duties imposed by various Executive Orders pursuant to [IEEPA], including those on imports from Brazil and India.” The March 20 Order reads:
[W]ith respect to any and all unliquidated entries that were subject to IEEPA duties, U.S. Customs and Border Protection is hereby directed to liquidate those entries without regard to IEEPA duties. Any liquidated entries for which liquidated is not final [emphasis added] shall be reliquidated without regard to those duties.
Once again, what is specifically excluded from the March 20 Order is CBP refund requirements for those liquidated and finalized entries that were subject to the IEEPA duties. Judge Eaton stated that since the parties were unable to reach a resolution, importers (and presumably brokers) “should be aware of the remedies available under 19 U.S.C. § 1514 (Protest against decisions of Custom Services).”
Protest Against Decisions of Custom Services
In short, 19 U.S.C. § 1514 provides that a liquidation is final unless either (i) “a protest is filed in accordance with” the section (c) of the statute or “a civil action contesting the denial of a protest” is filed in the CIT within a prescribed period of time.
After an entry has been liquidated, there is a 180-day window to file a protest to dispute the liquidation. If an importer fails to file a protest within the timeline, the liquidation is considered finalized and is no longer eligible for administrative protests.
Actions To Take
For any taxpayer with IEEPA tariffs that have been liquidated (whether finalized or not), Cherry Bekaert strongly recommends that those taxpayers seek the advice of legal counsel to discuss preserving their rights through protest or other legal action.
Update on CBP Refund System
On March 19, 2026, CBP filed a status update with the CIT outlining its progress on the new refunds system, known as Consolidated Administration and Processing of Entries (CAPE). CBP outlined and provided an update on CAPE’s four components:
- Claim Portal: 73% Complete
- Mass Processing: 45% Complete
- Review and Liquidation/Reliquidation: 80% Complete
- Refund:63% Complete
The CIT has ordered CBP to provide another status by March 31, 2026.
Guiding Your Next Steps
While Cherry Bekaert does not offer legal services for tariffs, our firm and teams have deep connections with law offices throughout the U.S. that will best suit your organization’s needs. With this knowledge, we are able to provide recommendations to the right legal firm.
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