DOJ appeal throws fresh uncertainty into tariff refund process

Insight summary

• •The DOJ appealed a Court of International Trade order requiring refunds for invalidated tariffs enacted under the International Emergency Economic Powers Act.
• •The appeal challenges the CIT's authority to grant relief for "finally liquidated" entries and importers not filing cases.
• •Approximately $85 billion in tariff refund claims are being processed, with $20.6 billion already approved for disbursement.
• •The government’s appeal may delay future phases of the refund program and complicate recovery for some importers.
• •CAPE Phase 1 refund requests are unaffected, but subsequent phases may require lawsuits in the Court of International Trade.
• •The government's strategy appears aimed at limiting refund payouts by creating legal barriers for importers.
• •Companies should preserve legal rights to refunds and monitor the appeal to decide on potential litigation.