Feature, Freight News, Logistics

US Justice Appeals Broad Tariff Refund Order

[ June 4, 2026   //   Gary Burrows ]

The U.S. Department of Justice has appealed a Court of International Trade ruling requiring the federal government to issue broad refunds of tariffs collected under the International Emergency Economic Powers Act (IEEPA), injecting new uncertainty into a repayment process that has already returned more than US$20 billion to importers.

The appeal follows a series of court decisions stemming from the U.S. Supreme Court’s invalidation of the tariffs, which had been imposed under emergency authorities. Earlier this year, the Court of International Trade ordered U.S. Customs and Border Protection to refund duties on unliquidated and unfinalized entries. The court later expanded the order to include finally liquidated entries as well.

The Justice Department has argued that the trade court lacks authority to order universal refunds for all finalized entries, contending that relief should be limited to importers that filed legal challenges.

In a recent court filing, government attorneys said they intend to appeal the court’s “universal injunction” and seek a stay of the order except for the specific plaintiffs involved in the cases.

Media reports indicate the appeal has now been formally filed with the U.S. Court of Appeals, setting the stage for another round of litigation over the scope of tariff repayments.

Meanwhile, Customs and Border Protection continues processing refunds through its Consolidated Administration and Processing of Entries (CAPE) system. According to court filings, approximately US$20.6 billion had been refunded as of May 26, with total repayments expected to reach roughly US$85 billion.

CBP has acknowledged that its current systems are not yet capable of processing refunds for finally liquidated entries, although the agency has said it is developing that capability. The Court of International Trade has temporarily stayed its universal refund order while Customs updates its systems.

Trade compliance specialists said the appeal was not unexpected, given longstanding questions regarding the court’s authority to extend relief beyond companies that actively participated in the litigation.

The case is being closely watched by importers, customs brokers and trade attorneys because it could determine whether tariff refunds are broadly available across the importing community or limited to companies that challenged the duties in court.

Tags: U..S. Court of International Trade, U.S. Customs and Border Protection, U.S. Justice Department