IEEPA Tariff Refund Update: Refunds on Final Liquidated Entries in Controversy

Alert

June 4, 2026

On May 29, 2026, the U.S. Customs and Border Protection (CBP) filed a motion with the U.S. Court of International Trade (CIT) in V.O.S. Selections, Inc. v. Trump, clarifying two critical issues related to tariffs imposed under the International Emergency Economic Powers Act (IEEPA):

CBP does not believe it has the authority to issue refunds of IEEPA tariffs that are both liquidated and finalized without a court order.
CBP intends to appeal the universal injunction issued by the CIT with respect to the forementioned IEEPA tariffs.

Importers of record with entries that have liquidated and are at risk of becoming finalized (i.e., the 180-day protest window post-liquidation close) should immediately consult legal counsel.

Background

In Atmus Filtration v. United States, a case seeking refunds in light of the CIT’s decision in V.O.S. Selections, Judge Richard Eaton ordered an injunction against any further imposition or collection of IEEPA tariffs, and the immediate refund of such tariffs on (i) all unliquidated entries, and (ii) liquidated but not final entries.

Judge Eaton temporarily stayed his order for immediate refund to give CBP the opportunity to update the Automated Commercial Environment (ACE) to allow time for the development of a new functionality, known as Consolidated Administration and Process Entries (CAPE), to process the refunds. Judge Eaton also acknowledged CBP’s need to roll out CAPE functionality in phases, given the volume of the entries for which refunds were owed.

During the rollout of the CAPE portal, Judge Eaton amended his original order to broaden its scope to include all entries on which the unconstitutional IEEPA tariffs were imposed, explicitly including entries that had already liquidated and become final.

In the interim, Atmus Filtration was dismissed and Euro-Notions Florida v. United States became the lead case. Recent Cherry Bekaert insights provide details on the Atmus Filtration case and CBP’s latest CIT update.

On April 20, 2026, Phase I CAPE functionality went live permitting the submission of refund claims for certain non-final entries.

Lack of Progress for Refunds of Final Liquidated Entries

On May 27, 2026, Judge Eaton issued an order to show cause in V.O.S. Selections, Inc., directing CBP to explain, by June 9, 2026, at 1:30 p.m. EDT, why the CIT should not reinstate its prior order requiring immediate refunds for all entries subject to the IEEPA tariffs.

In response, on May 29, 2026, the U.S. Department of Justice (DOJ) filed a motion in V.O.S. Selections to amend the court’s order, setting forth the government’s position on the IEEPA refund process with respect to final liquidated entries. Within the context of the broader motion, the government addresses and draws a distinction between the following two categories of entries:

Final Liquidated Entries for Which Parties Have Cases With the CIT

The DOJ asserts that CBP lacks authority to reliquidate or issue refunds for final liquidated entries without a court order. It further notes that the court has, to date, provided any importer-specific relief in this context. In addition, the DOJ explains that it believes CBP cannot immediately implement such relief as the CAPE portal lacks the necessary functionality to process such entries, and additional “system enhancements” are needed to do so.

Final Liquidated Entries for Which Parties Have Not Filed a Case Withthe CIT

The DOJ reiterated that the CBP lacks authority to reliquidate such entries to remove IEEPA tariffs or to issue refunds absent a court order. Further, the DOJ states that:

This Court has entered a universal injunction ordering CBP to reliquidate final entries including entries made by importers who have not sued in this Court. But the defendants * * * [will explain] in their forthcoming response to the Court’s order to show cause, the universal injunction exceeds the Court’s jurisdiction and equitable authority…For that reason, defendants intend to appeal the Court’s universal injunction and to seek a stay of the injunction except as to the particular importer plaintiffs in each case in which the Court has entered the injunction.

Next Steps for Importers of Record

Importers of record with entries that have liquidated and become final, as well as those with entries approaching finality, should promptly consult legal counsel to assess potential options and preserve any available remedies.

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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