The U.S. Court of International Trade (CIT) has issued an important ruling regarding the treatment of entries subject to tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The court confirmed that liquidation of these entries may continue while legal challenges remain pending and that such liquidation does not, by itself, eliminate an importer’s ability to recover duties if the tariffs are ultimately found to be unlawful.
Current Status of Liquidation for IEEPA Tariff Entries
In its decision, the CIT declined to halt liquidation of entries subject to IEEPA tariffs during ongoing litigation. The court determined that allowing liquidation to proceed does not cause irreparable harm to importers because the court retains the authority to order reliquidation at a later date.
Specifically, in AGS Company Automotive Solutions, et al. v. United States, Slip Op. 25-154 (Ct. Int’l Trade 2025), the court held that liquidation will not prevent it from ordering refunds if the IEEPA tariffs are invalidated by the U.S. Supreme Court in the related case V.O.S. Selections, Inc. v. Trump, which is currently under review.
Impact of Liquidation on Refund Eligibility
The court explicitly confirmed that liquidation does not bar the recovery of IEEPA tariffs in pending judicial actions. If the tariffs are ultimately ruled unlawful, previously liquidated entries may be reliquidated, allowing duties to be refunded, including interest where applicable.
In reaching this conclusion, the court stated that the U.S. Government would be judicially estopped from arguing that liquidation prevents the court from granting refunds in cases already before it. This clarification provides greater certainty for importers whose entries are liquidating while litigation proceeds.
Important Limitations and Considerations
While the decision is favorable for importers involved in ongoing court challenges, the court emphasized several important limitations:
- The ruling currently applies only to cases that are already pending before the Court of International Trade.
- The court indicated that IEEPA tariffs may not be recoverable solely through the filing of administrative protests against liquidation under 19 U.S.C. § 1514(a).
- The availability and process for obtaining refunds of IEEPA tariffs remains a developing issue and may change based on future court decisions, including the ultimate outcome at the U.S. Supreme Court.
What Importers Should Do Now
Importers with exposure to IEEPA tariffs should closely monitor liquidation activity, assess whether they are parties to or eligible to participate in ongoing litigation, and ensure that their entry data and documentation are preserved in the event reliquidation becomes available.
J.M. Rodgers continues to track developments related to IEEPA tariffs and refund mechanisms. Our team can assist with evaluating exposure, monitoring liquidation timelines, and advising on duty recovery strategies as the legal landscape evolves.
If you have questions about how this ruling may impact your imports or potential duty recovery, please contact your J.M. Rodgers representative.
