US Tariffs and IEEPA Refunds Following the Supreme Court Decision: Legal Implications and Operational Aspects

The Effects of the Supreme Court Decision and the Role of the CIT

Following the judgment of February 20, 2026, in which the United States Supreme Court declared unlawful the imposition of tariffs based on the International Emergency Economic Powers Act (IEEPA), a number of practical issues have arisen among affected operators, particularly with regard to the procedures for refunding amounts already paid.

As an immediate consequence, the Court of Appeals for the Federal Circuit, urging the definition of an operational refund mechanism, issued a mandate to the U.S. Court of International Trade, which, while acknowledging importers’ right to reimbursement, declined to directly manage such function in an administrative capacity.

With the U.S. Customs and Border Protection (CBP) being tasked with the matter, the impossibility of proceeding with immediate refunds emerged due to the lack of an adequate IT system, prompting the development of solutions based on the ACE and CAPE platforms. The Court of International Trade therefore suspended the immediate enforceability of refunds, retaining a supervisory role and requiring periodic updates on the progress of the system.

The Procedural Model Proposed by CBP: ACE and CAPE

The solution outlined by CBP to manage the consequences of the Supreme Court ruling is structured as a highly automated process aimed at enabling the large-scale handling of refunds.

In summary, the model provides for: (i) the submission by the importer of a declaration through the Automated Commercial Environment (ACE), including the entries affected by IEEPA tariffs; (ii) the automatic execution of checks and recalculations, excluding IEEPA duties and applying standard tariffs; (iii) verification by CBP; (iv) the automatic liquidation or reliquidation of entries; (v) the calculation of interest; (vi) the aggregation of refunds by importer; and (vii) certification of amounts and payment through the Department of the Treasury.

During the conference held on March 12, 2026, CBP further developed this framework through the CAPE project (Consolidated Administration and Processing of Entries), designed as a dedicated portal for managing claims, whose functionality is expected to become operational by the end of April.

Preparatory Activities for Operators

Despite the level of technical detail achieved, CBP has not yet issued official, final, and binding guidelines regarding the refund of IEEPA tariffs. The procedure must therefore still be considered under administrative development, under the supervision of the Court of International Trade.

In light of this, affected companies should nonetheless begin internal preparatory activities, in particular by:

• mapping exports to the United States, identifying all entries subject to IEEPA tariffs;
• collecting and organizing data for each entry, with particular reference to:
• identification number;
• date of importation and liquidation;
• amounts paid;
• applied tariff classification;
• reviewing HTS classifications to determine the correct tariff treatment in the absence of IEEPA duties;
• carrying out a preliminary estimate of potential refunds, calculating recoverable amounts, including interest; and
• verifying access to ACE systems and coordinating with customs brokers for the use of the future CAPE portal.

The Set-Off Mechanism: A Structural Limitation on Refunds

A further element to be considered in the current framework is that the refund of amounts paid will not be equivalent to the total amount of IEEPA tariffs paid.

The system envisaged by CBP is based on an overall recalculation of the duty due, which entails (a) the removal of the IEEPA component and (b) the simultaneous application of the ordinary duties due under the applicable legislation.

Accordingly, the refund should correspond to the difference between the amount actually paid and the amount due under the correct tariff regime, resulting in a set-off between the two components.

It follows that the refund will not equal 100% of the IEEPA tariffs paid, but will be reduced based on the applicable standard duties.

Operational and Strategic Considerations

In light of the current framework, several key operational indications can be identified with sufficient clarity. The refund process appears set to take the form of a centralized, administrative, and highly digitized system, directly managed by CBP.

At the same time, the U.S. Court of International Trade appears inclined not to substitute itself for the administration in operational execution, limiting its role to guidance and supervision. In this context, there are currently no elements justifying widespread recourse to litigation, also in view of the imminent definition of a dedicated administrative procedure. Consequently, the main critical factor for operators will be organizational readiness, namely the ability to promptly prepare and submit complete, consistent, and verifiable data.

From this perspective, the current phase is essentially preparatory in nature: the timely organization of information and coordination with legal and customs advisors represent the primary lever to maximize recovery of the amounts due.

We remain available for further information and assistance