IEEPA Refunds: What Importers Need to Know — and Do — Right Now
On February 20, 2026, the U.S. Supreme Court issued a landmark 6-3 ruling striking down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), holding that the law does not grant authority to levy tariffs — a power that belongs exclusively to Congress. It was a consequential decision, and one that has prompted a wave of questions from importers navigating what comes next.
Our colleagues at BDO USA published an excellent breakdown of the ruling and its practical implications. We wanted to add an operational perspective — because understanding the law is only half the battle. Acting on it is the other half.
Yes, Refunds Are on the Table — But Not Yet in Your Pocket
If your business paid IEEPA tariffs, you are likely eligible for refunds. The revoked executive orders cover tariffs paid as far back as February 4, 2025 for the “fentanyl” tariffs and April 2, 2025 for the “reciprocal” tariffs, with additional refunds potentially available related to Venezuela, Brazil, and Russia. That’s a meaningful window — potentially over a year’s worth of duties collected without legal authority.
However, the refund process itself is still being built. CBP recently informed the Court of International Trade that it cannot yet comply with a court order to begin issuing refunds, citing the sheer scale of the undertaking — an estimated 53 million entries totaling roughly $166 billion in deposits. CBP has proposed a 45-day timeline to develop a streamlined process through the Automated Commercial Environment (ACE) system, but as of now, the operational mechanics are still being worked out. As one international trade attorney noted publicly, “the refund process is likely coming, but not immediately.”
What Importers Should Be Doing Now
Waiting on CBP to finalize its process doesn’t mean waiting to prepare. There are concrete steps importers should be taking today:
1. Get into ACE — and set up electronic refunds. This is critical on two levels. First, ACE is the system through which refunds will be processed and validated. Second, CBP transitioned to electronic-only refunds in February, meaning refunds can no longer be issued by paper check. Importers who have not yet registered for electronic refunds in ACE will not be able to receive payments when the process goes live. CBP estimates that thousands of refunds are already being held up for this reason.
2. Start calculating. Pull the Entry Summary Details Report (ES-003) from your ACE account and filter by HTSUS codes 9903.01.XX and 9903.02.XX to isolate IEEPA tariff payments. Build out refund calculations by entry, by country, and by tariff rate. Interest on overpaid duties accrues at IRS-published quarterly rates, so having accurate figures ready now will be a significant advantage.
3. Understand the Protest deadline. CBP’s Centers of Excellence and Expertise are currently holding IEEPA-related PSC requests pending headquarters guidance, and filings are being denied. The more practical path is to wait for entries to liquidate and then file a Protest — but timing matters. Once an entry liquidates, importers have 180 days to file a Protest, and that deadline is firm. Missing it forfeits the right to a refund on that entry. Note that CBP’s ACE system is currently auto-liquidating entries each Friday — including those subject to IEEPA duties — because isolating those entries for a manual hold is not yet technically feasible. Monitoring your liquidation dates closely and having your Protest strategy ready is essential.
Other Tariffs Remain in Effect
The ruling applies only to IEEPA-based tariffs. Section 232 tariffs covering steel, aluminum, autos, semiconductors, and more remain fully in place, as do China Section 301 tariffs ranging from 7.5% to 100%. A new 10% temporary surcharge under Section 122 of the Trade Act of 1974 took effect on February 24, 2026 and is set to expire July 24, 2026 — unless Congress acts to extend it.
The broader tariff landscape remains fluid. Additional Section 232 investigations are pending, Section 301 actions are expected to expand, and there is discussion of potential duties under Section 338 of the Tariff Act of 1930, which could allow tariffs of up to 50% on imports from countries deemed to discriminate against U.S. commerce.
We’ll continue to update you as we learn more.