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U.S. Appeals Move Threatens Universal Refunds of $166 Billion in Tariffs

The Justice Department has moved to appeal a Court of International Trade order for universal IEEPA refunds, a step that could pause disbursements and force many importers to sue to recover payments.

Overview

  • The Justice Department filed notice on May 29 that it intends to appeal the Court of International Trade’s universal injunction ordering Customs and Border Protection to reliquidate and refund tariffs imposed under the International Emergency Economic Powers Act.
  • CBP has rolled out a phased electronic portal called CAPE and has accepted about $85 billion in claims and directed roughly $20.6 billion to the Treasury for disbursement, but CAPE currently handles only unliquidated entries or those within about an 80‑day post‑liquidation window.
  • DOJ argues the CIT exceeded its authority by ordering refunds for finally liquidated entries for importers who did not sue, saying CBP lacks statutory power to reliquidate final entries without importer‑specific court orders and seeking a stay of universal relief.
  • Judge Richard Eaton ordered CBP Commissioner Rodney Scott to testify about timing for full repayment, the government sought to substitute other officials and the court rejected that request, intensifying the dispute over compliance and oversight.
  • About 330,000 importers may be eligible for refunds and thousands have filed suits; if the appeal or a stay succeeds, non‑litigant businesses could lose an administrative pathway to recover money and many firms are being urged to file protective protests or CIT lawsuits to preserve claims.