On July 15, 2026, Judge Richard K. Eaton issued an order (the July 15 Euro-Notions Order) in response to an update filed by the U.S. Customs and Border Protection (CBP) in the Euro-Notions Florida, Inc. v. CBP case. The order could pave the way for a class action lawsuit seeking refunds of tariffs imposed under the International Emergency Economic Act (IEEPA).
Following his ruling, Judge Eaton issued a broader order (Blanket IEEPA Order) that provides CBP with the legal authority to reliquidate all previously finalized liquidated entries and issue applicable refunds.
Finally Liquidated Entries
The Blanket IEEPA Order defines “finally liquidated entries” as those entries that have been liquidated for greater than 90 days. This 90-day threshold is significant because it relates to which entries are eligible for processing under CAPE Phase 1.
CAPE Phase 1 established a cut-off on the liquidation date, allowing only entries that had been liquidated within the prior 80 days to be submitted for refund. The 10-day gap served as a processing buffer, reflecting the CBP’s authority under 19 U.S.C. § 1501 to voluntarily reliquidate entries only within 90 days of its liquidation. As a result, any entries that had been liquidated for 81 days or more were excluded from refund eligibility under CAPE Phase 1.
CIT’s Orders on Finally Liquidated Entries
The Government’s position has been that without a specific grant of authority, it is unable to reliquidate finally liquidated entries. To date, the Government has maintained that such authority is limited to plaintiffs that have received a final refund order from the U.S. Court of International Trade (CIT).
In the July 15 Euro-Notions Order, Judge Eaton stated:
Also discussed [in the Euro-Notions July 14 closed door hearing] was Plaintiff Euro-Notions Florida, Inc.’s intention to voluntarily dismiss its case. In its place, the court will lift the stay in Freestyle World, Inc. v. United States, Court No. 26-01088.
The Freestyle World case is relevant because the CIT previously issued a “stay” in the case, pausing the plaintiff’s request for class certification, delaying consideration of the case as a potential class action lawsuit. Judge Eaton’s decision to lift the stay could indicate the CIT intends to consider whether refunds may be available to importers of record that paid IEEPA tariffs on finally liquidated entries without each having to file suit before the CIT.
In the July 15 Euro-Notions Order, Judge Eaton stated that in connection with the upcoming launch of CAPE Phase 3, the Court would issue a directing CBP to reliquidate certain finally liquidated entries and outline the procedures for doing so. That order will then be entered for each of the approximately 3,700 IEEPA cases before the CIT. On that same day, Judge Eaton issued the Blanket IEEPA Order, which provides that direction.
The Blanket IEEPA Order is intended to address the pending IEEPA cases (approximately 3,700 cases) before the CIT and it appears broad enough to encompass future cases seeking refunds of IEEPA tariffs on finally liquidated orders. Specifically, the Blanket IEEPA Order reads:
ORDERED that U.S. Customs and Border Protection shall reliquidate, without regard to IEEPA duties, any and all of Plaintiff’s entries that have been liquidated for more than 80 days and on which Plaintiffs made estimated deposits pursuant to IEEPA. For purposes of this order, reliquidation of entries that have been liquidated for more than 80 days is subject to Plaintiffs’ counsel’s submission to U.S. Customs and Border Protection of Plaintiff’s importer of record identification number(s), in accordance with instructions to be provided by U.S. Customs and Border Protection and conveyed to Plaintiffs’ counsel. Also, for the purpose of this order, reliquidation shall occur only following U.S. Customs and Border Protection’s acceptance of Plaintiffs’ CAPE declarations[.]
(Emphasis added).
What’s Next for Importers of Records
Judge Eaton’s dual orders appear to be positive for importers of records with finally liquidated entries. However, there still is a lack of clarity for those importers of records without pending cases before the CIT.
Key questions remain unanswered. Could CBP proactively include such finally liquidated entries in its CAPE Phase 3? Alternatively, could the Freestyle World case ultimately receive a class certification, providing a new avenue for importers of records to seek refunds without filing before the CIT? Until further guidance is issued by the Court or CBP, the path to refunds for these importers remains unclear.
Your Guide Forward
Cherry Bekaert established a cross-functional team of professionals to help advise and support our clients with the downstream effects when tariffs and tariff refunds impact tax, accounting, audit and financial reporting functions.
If you have questions about preserving your rights or about any other legal or trade implications that may exist, we recommend reaching out to appropriate legal counsel.
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