The Court of International Trade (CIT) has updated its position on IEEPA refunds, impacting numerous businesses across various sectors. The latest rulings indicate changes to the way tariffs are administered, particularly under the International Emergency Economic Powers Act (IEEPA).
Recent Developments in IEEPA Refund Order
As of April 8, Judge Richard Eaton reissued the IEEPA refund order after appointing Euro-Notions Florida as the lead plaintiff. This comes after the previous plaintiff voluntarily dismissed their case. U.S. Customs and Border Protection (CBP) will utilize Euro-Notions’ entries to test the first phase of the Consolidated Administration and Processing of Entries (CAPE), which is an automated refund system. CAPE Phase 1 is expected to launch by April 20, 2026.
Impact of the Reissued Order
- Compliance with the order is currently suspended while CBP completes the development of CAPE.
- The government now has until approximately June 7 to decide on an appeal regarding the scope of Judge Eaton’s ruling.
- CBP plans to provide a progress report on CAPE on April 14, 2026.
Tariff Modifications by President Trump
In a separate move, President Trump has proposed a 50% tariff on countries supplying military weapons to Iran. However, specifics on the mechanism used for this tariff and the impacted nations were not disclosed.
Section 232 Tariffs on Metals
On April 2, President Trump announced amendments to Section 232 tariffs affecting steel, aluminum, and copper products. Key changes include:
- A 25% tariff on steel, aluminum, and copper derivative products effective April 6.
- A flat 50% tariff on various steel and aluminum articles listed in Chapters 72-76 of the HTSUS.
- Full price duties will apply to entire products, not just their metal content.
New Pharma Tariffs in the Works
Additionally, an executive order issued by President Trump will impose Section 232 tariffs on select pharmaceutical products. Large companies will see a 100% tariff on patented drugs without most-favored-nation pricing, while those reshoring production to the U.S. may qualify for a reduced tax rate.
Updates on IEEPA Tariff Collection
Recent updates indicate that CBP has halted the application of IEEPA duties effective February 24, 2026. Moving forward, importers need to adjust to the new 10% Section 122 global tariff, which is set to expire on July 24, 2026. The tariff rate could change given ongoing developments within the administration.
Recommendations for Businesses
To navigate these changes effectively, businesses are advised to:
- File protests to safeguard entries and remain eligible for refunds.
- Review and ensure that Automated Commercial Environment (ACE) accounts are up to date for faster processing.
- Utilize tariff calculators to estimate potential refunds and monitor any tariff changes closely.
These developments point to a complex landscape for businesses engaged in international trade, necessitating close attention to tariff regulations and CBP updates.
