The U.S. Department of Justice (DOJ) is seeking to delay the process for issuing IEEPA tariff refunds, following the Supreme Court’s decision striking down tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
In a filing before the Court of Appeals for the Federal Circuit (CAFC), the DOJ opposed an expedited remand requested by V.O.S., the plaintiff in the underlying litigation. The case would otherwise return to the Court of International Trade (CIT) to begin proceedings toward final resolution — including potential refunds.
Why the Government Opposes Expedited Refund Proceedings
The DOJ argues that there is no urgency in returning the case to the CIT. Specifically, the Government maintains that:
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Plaintiffs Would Be Fully Compensated
If refunds are ultimately ordered, V.O.S. would receive reimbursement plus statutory interest. -
Relief Should Not Be Universal
The Government contends that V.O.S. cannot obtain relief for importers who were not parties to the litigation. This position suggests continued resistance to broad, automatic refunds. -
Congress Should Have Time to Act
The DOJ requested that the CAFC delay the remand process for an additional 90 days to allow “the political branches” to consider legislative responses.
Additionally, the Government referenced prior oral argument statements indicating that refunds could potentially apply prospectively rather than retroactively — further increasing uncertainty.
What Happens Next in the IEEPA Tariff Refunds Delay
It remains unclear how the CAFC will rule on the request to delay the remand. However, many observers believe the court is unlikely to grant the full 90-day delay requested by the Government.
Regardless of the timing, the DOJ’s position signals that the refund process may:
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Not be automatic
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Not apply universally
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Not move quickly
As a result, importers should not assume that refunds will be broadly distributed without further legal action.
What Importers Should Consider
Given the uncertainty surrounding the IEEPA tariff refunds delay, importers may wish to:
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Closely monitor liquidation timelines
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File timely protests where appropriate
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Evaluate potential litigation options
Notably, under 28 U.S.C. § 1581(i), certain claims must be filed within two years from the date of payment of the first IEEPA duties. Therefore, businesses should carefully assess statutory deadlines.
Broader Context
The Supreme Court’s February 20 decision invalidated IEEPA tariffs, but it did not establish a refund mechanism. The matter now depends on proceedings before the CAFC and the CIT.
Meanwhile, the administration has already implemented alternative tariff measures under Section 122 of the Trade Act of 1974, signaling that trade policy volatility remains ongoing.
Frequently Asked Questions
Is the DOJ blocking all refunds?
No, but the DOJ is opposing expedited proceedings and broad relief.
Will refunds be automatic?
Unlikely. Importers may need to take procedural steps.
Could refunds be limited to specific parties?
Yes. The Government argues that only litigants may receive relief.
Is there a filing deadline?
Yes. Certain claims may be subject to a two-year statutory limitation period.