By Fratelli McNeese Inc
Today, the U.S. Supreme Court is hearing arguments on the legality of the tariffs imposed under the International Emergency Economic Powers Act (IEEPA), enacted in prior administrations to address perceived national-economic threats. Lower courts (CIT and CAFC) have already expressed serious doubts about the lawfulness of these tariffs, opening the possibility of a partial or full annulment. However, it is important to note that any refunds will not be automatic: the Court may limit relief to the named plaintiffs or certified class members in the pending lawsuits.
Best Practices for U.S. Importers
- Review CBP Entry Summaries (Form 7501) to identify entries that included IEEPA-related duties.
- File Post Summary Corrections (PSC) for any unliquidated entries still within the correction window.
- File Protests within 180 days of liquidation to preserve refund rights.
- Request Suspension of Liquidation from CBP, citing the ongoing Supreme Court litigation.
- Keep all documentation—entry summaries, proof of payment, and broker correspondence—for at least five years.
- Review and update sales contracts to include tariff refund sharing and change-in-law clauses.
- Document payment of U.S. duties (in invoices, purchase orders, and entry records) to establish a direct financial interest.
- Consider joining a group or protective filing at the U.S. Court of International Trade (CIT) to secure refund rights.
- Consider utilizing a Free Trade Zone (FTZ) until the Supreme Courts makes its decision.
- Evaluate participation in advocacy coalitions such as “We Pay the Tariffs,” which provide valuable updates and coordination opportunities, though membership alone does not preserve individual refund rights.
Last but not least, coordinate closely with your customs broker to monitor liquidation status and potential corrections.
Next Steps
- Expected Supreme Court Decision: April–June 2026
- Recommended actions by December 2025: complete PSC and protests; evaluate participation in group or class actions.
For tailored assessments of your IEEPA exposure and refund strategies:
Fratelli McNeese, Inc., Manhattan, New York – Atlanta, Georgia, USA info@fratellimcneese.com www.fratellimcneese.com
