The U.S. Court of International Trade (CIT) has ordered U.S. Customs and Border Protection (CBP) to issue universal refunds of duties collected under the International Emergency Economic Powers Act (IEEPA), marking one of the most sweeping trade‑related refund directives in recent years.
The order, issued March 4, requires CBP to liquidate all unliquidated entries without applying IEEPA duties and to re‑liquidate any entries whose liquidation is not yet final, also without regard to IEEPA‑based charges.
CBP has indicated in related filings that it intends to conduct a review period before issuing refunds to ensure that no other duties, taxes, or fees are owed, including anti‑dumping and countervailing duties, Section 301 tariffs, and Section 232 national‑security duties. That position suggests the agency may move cautiously rather than automatically issuing refunds.
The parties involved in the case have been ordered to appear at a closed hearing on March 6, after which additional clarity is expected.
Trade advisors say businesses should begin preparing immediately. Companies are being urged to confirm their Automated Commercial Environment (ACE) access, ensure ACH refund details are in place, calculate potential refund amounts, audit their entries for tariff stacking, and file protests where necessary.
Importers should also consider the implications for goods subject to Section 232 duties, which may interact with the refund process. Under U.S. law, liquidations become final 180 days after the liquidation date unless a protest is filed.
The ruling comes as the broader U.S. tariff environment undergoes rapid change.
Treasury Secretary Scott Bessent said this week that the new 10% global tariff imposed under Section 122 is expected to rise to 15% "sometime this week," aligning with President Donald Trump's earlier public statements. Section 122 duties are capped at 15% and can only remain in effect for 150 days without congressional approval. The current global tariff, implemented on February 24, expires July 24, 2026.
The new global tariff has created unexpected outcomes for some trading partners. Many EU goods previously faced a combined 15% rate under IEEPA, but under the new structure, some now face total tariffs exceeding that level.
Several categories of goods are exempt from the global tariff, including certain critical minerals, energy products, agricultural goods, USMCA‑compliant Canadian and Mexican goods, and products covered by CAFTA‑DR.
Goods already in transit before the tariff took effect are also exempt if they meet specific timing requirements. Items subject to Section 232 tariffs remain exempt from the global tariff, although the non‑metal content of steel, aluminum, iron, and copper products is still covered.
The "de minimis" exemption also remains suspended following the Supreme Court's February 20 ruling that eliminated IEEPA duties.
Postal shipments are currently subject to the global tariff rate until the tariff expires or until CBP establishes a new entry process for international mail. CBP has said it will maintain existing processes for filing entries and collecting duties on shipments that previously qualified for de minimis treatment.
The trade environment grew more uncertain this week after President Trump said he had instructed Treasury Secretary Bessent to "cut off all trade with Spain" following a dispute over U.S. access to jointly operated military bases.
The White House later said Spain had agreed to cooperate, but Spain's foreign minister publicly rejected that claim, stating that the country's position on Middle East operations "has not changed at all." The European Commission responded by affirming that it stands ready to defend Spain under the EU's common trade policy if necessary.
Analysts say businesses should expect increasingly complex tariff rules in the months ahead. The administration has signaled plans to pursue new investigations under Section 301, which targets discriminatory foreign trade practices, and Section 232, which addresses national‑security concerns. Both processes typically take months to complete.
Officials have also referenced Section 338, a rarely used statute that allows tariffs of up to 50% on imports from countries that discriminate against U.S. commerce and may not require a formal investigation before implementation.
No president has previously used Section 338 to impose tariffs.
With IEEPA duties now eliminated, a rising global tariff under Section 122, and the possibility of new duties under multiple statutory authorities, importers face a rapidly shifting compliance landscape. Analysts said the coming weeks will be critical as CBP begins implementing the CIT's refund order and the administration outlines its next steps on tariffs.
