$175 Billion in Refund Claims Are Filing This Week. Is Yours?

The Current Landscape

On February 20, the Supreme Court ruled 6-3 in Learning Resources Inc. v. Trump that IEEPA tariffs were unconstitutional. Three days later, every major trade law firm in the country has published client alerts, importers are scrambling to quantify their claims, and Congress is already fighting over how refunds will work.

The Wharton Budget Model estimates $175 billion in potential refund claims - the largest customs refund event in American history. Baker Tilly, Sidley Austin, Buchanan, Ropes & Gray, and Avalara all published guidance today walking importers through the mechanics. The consensus is clear: file now, file correctly, and do not wait.

Senate Democrats Push for a 180-Day Refund Deadline

Today, Senators Wyden, Markey, and Shaheen introduced legislation that would require CBP to process all IEEPA tariff refunds within 180 days of a valid claim - and pay interest on any amount not returned within that window.

The bill is a direct response to the administration's stated plan to drag things out. Whether it passes is uncertain - but the fact that it was introduced the same week as the ruling tells you how fast this is moving.

Even without the legislation, the CIT has broad authority to order refund timelines. Judge Barnett is expected to set an initial scheduling order within weeks. Having your claim properly documented and filed before that order comes down puts you in the strongest possible position.

The Administration Is Already Playing Defense

Trade Representative Jamieson Greer has publicly stated that the administration intends to route all refund claims through the Court of International Trade rather than allowing CBP to process them administratively. The goal is straightforward: slow everything down.

This creates a real tension. For unliquidated entries, CBP can process corrections through the normal ACE system without any court involvement. Routing those claims through CIT adds months or years of delay that serves no legal purpose - it is purely a tactic.

Companies like Costco, Revlon, and Bumble Bee saw this coming. They filed pre-emptive lawsuits before the SCOTUS ruling, and those cases are now positioned at the front of the line. If you have not filed yet, you are already behind those companies - but you can still get in the queue.

Two Paths to Your Refund: Which One Applies to You

Your refund path depends on one question: have your entries been liquidated? If you are not sure, check ACE or ask your broker.

Path 1: Unliquidated Entries (Fastest)

If CBP has not yet liquidated your entries, you are in the best position. Your broker or customs counsel can file Post-Summary Corrections (PSCs) through ACE to remove the IEEPA duty amounts. This is an administrative process - no court involvement required.

The mechanics are straightforward: your broker submits a PSC adjusting the duty rate to remove the IEEPA component, CBP reviews and processes the correction, and the overpayment is refunded. Typical processing time for a PSC is 30 to 90 days under normal conditions. Given the volume, expect it to take longer - but this is still the fastest path available.

Action item: Contact your broker this week. Identify all unliquidated entries with IEEPA duty components. Begin PSC filings immediately. Do not wait for CBP to issue formal guidance - the legal basis is the Supreme Court ruling itself.

Path 2: Liquidated Entries (Requires Protest or Litigation)

If your entries have already been liquidated, you have two options:

• File a protest within 180 days of liquidation. This is the standard administrative remedy under 19 USC 1514. If your entries were liquidated within the last 180 days, you can still protest. CBP must respond within two years, though the political pressure may accelerate that.
• File a CIT action under 28 USC 1581(i). If your 180-day protest window has closed - or if you want to bypass the administrative process - you can go directly to the Court of International Trade. This is slower and more expensive, but it may be the only option for older entries.

Action item: Pull your liquidation dates. If any entries were liquidated in the last 180 days, file protests immediately. For older entries, consult with trade counsel about a 1581(i) action.

What to Do This Week: A Step-by-Step Checklist

1. 1. Pull your complete IEEPA duty history from ACE. You need every entry with an IEEPA duty component, the duty amount paid, the entry date, and the liquidation status. Your broker should be able to generate this report.
2. 2. Separate entries into unliquidated vs. liquidated buckets. This determines your filing path. For liquidated entries, note the liquidation date - the 180-day protest clock is ticking.
3. 3. Calculate your total claim value. Add up every dollar of IEEPA duties paid across all entries. This is your gross refund amount. Use our refund calculator to estimate the present value based on your filing status and expected timeline.
4. 4. Initiate PSC filings for all unliquidated entries. Your broker should be doing this through ACE. If your broker is dragging their feet, call them. If they still drag their feet, find a new broker.
5. 5. File protests for any liquidated entries within the 180-day window. Do not wait for CBP guidance. The legal basis is established.
6. 6. Evaluate whether you need CIT litigation for older entries. If you have significant dollars locked up in entries that liquidated more than 180 days ago, talk to trade counsel about a 1581(i) action this week.
7. 7. Check your eligibility and understand the rate adjustments that apply to your specific product categories and country of origin.

Section 122 Replacement Tariffs: What Changes Tomorrow

Starting February 24, a flat 15% tariff under Section 122 of the Trade Act applies to all imports. This is the administration's stopgap - a legally distinct authority that caps at approximately 150 days (expiring in late July 2026).

Key things to understand about Section 122:

• • It is prospective only. It does not affect your right to a refund of past IEEPA duties. Those are two completely separate issues.
• • It is a flat 15% across the board. For importers who were paying 25% to 145% under IEEPA, this is a significant reduction in ongoing costs. For importers from countries with low or no IEEPA tariffs, this may actually be an increase.
• • It expires automatically. Section 122 has a statutory time limit. When it expires, the administration needs a new legal basis or the tariffs disappear.
• • Section 301 investigations are the backup plan. The administration has launched Section 301 investigations to create country-specific replacement tariffs before Section 122 expires. These investigations take months, which is why Section 122 was needed as a bridge.

For planning purposes: assume 15% for the next five months, then uncertainty. Budget accordingly.

Do Not Let This Slip

Every week you wait is a week of interest you are not earning on money the government owes you. Every week you wait is a week closer to potential procedural barriers the administration is actively working to create. The firms that filed pre-emptively - the Costcos and Revlons - understood this. They are at the front of the line.

You do not need to be at the back.

This article is for informational purposes only and does not constitute legal, financial, or tax advice. Consult qualified counsel before making decisions about your tariff refund claims.