03/06/2026

U.S. Court Orders CBP to Issue Refunds on IEEPA Duties; CBP Responds with the Plan to Refund Duties

Check out this week's Customs Corner to read about a U.S. court ordering CBP to refund IEEPA duties, CBP's First Sale Valuation Questionnaires, and more.

Trade and Customs Updates

1) U.S. Court Orders CBP to Issue Refunds on IEEPA Duties; CBP Responds with the Plan to Refund Duties

In an important update for U.S. importers, the U.S. Court of International Trade (CIT) has ordered Customs and Border Protection (CBP) to process outstanding import entries without adding IEEPA duties, and to reprocess any entries that have been completed but aren't final yet.

 

Brandon Lord, Executive Director Trade Programs in the Office of Trade, CBP responded to this order by signing a declaration today stating that U.S. Customs and Border Protection (CBP) cannot immediately comply with the court's order to refund IEEPA duties because their current systems and processes aren't designed to handle the huge number of refunds required—over 53 million entries from more than 330,000 importers, totaling about $166 billion. Many entries are scheduled to be processed automatically and can't be stopped in time, and CBP would have to do a lot of manual work that would take years and disrupt other important duties. There are also technical challenges, like separating IEEPA duties from other duties, handling interest payments, and making sure importers are set up for electronic refunds. To fix this, CBP is developing a new, more efficient system that will let importers file one declaration for all their affected entries, and the system will handle most of the work automatically—saving millions of hours and reducing mistakes. CBP expects to have this new process ready in about 45 days and will provide guidance to importers on how to use it. This declaration can be found here.

 

Their plan specifically states:

  • The importer files a declaration in ACE that includes a list of entries on which IEEPA duties were paid.
  • ACE runs a series of validations on each entry within the declaration and automatically re-calculates the duty owed without the IEEPA tariffs (with applicable interest).
  • CBP verifies the declaration and processes refunds as soon as practicable.
  • ACE automatically finalizes (liquidates or reliquidates) the entries.
  • ACE automatically aggregates the refunds with interest by importer and liquidation date.
  • CBP certifies the refunds.
  • The Department of the Treasury issues IEEPA refunds electronically.

 

We are still waiting for additional information. GEODIS will remain in close contact, providing additional updates as soon as they are available.

 

References:

 

2) CBP Issues First Sale Valuation Questionnaires—Heightened Scrutiny or Something More?

U.S. Customs and Border Protection (CBP) has initiated a broad review of importer valuation practices by issuing First Sale Valuation Questionnaires to numerous importers. These requests cover a three-year period (2023–2025) and require companies to disclose whether they used "first sale" valuation—declaring transaction value based on an earlier sale in a multitier transaction. While CBP conducts periodic valuation reviews, the timing of this effort raises questions given Senator Cassidy's recently introduced bill proposing to eliminate the First Sale program entirely. Importers should take this questionnaire seriously, ensure full accuracy in responses, and prepare potential follow up requests for supporting documentation.

 

Key Takeaways

  • CBP has launched a formal inquiry into importers' use of First Sale valuation, requiring questionnaire responses within 30 days, with no extensions.
  • All entries from 2023–2025 and all MIDs are included in the request.
  • Failure to respond in a timely manner may result in penalties under 19 C.F.R. §163.6.
  • The questionnaire references TD 96‑87, reaffirming CBP's long‑standing documentation requirements for First Sale claims.
  • The timing coincides with Senator Cassidy's proposed legislation to end the First Sale rule, leading many to question whether CBP's enforcement posture is shifting.
  • Importers should review internal valuation practices, confirm record keeping, and prepare for potential document requests following questionnaire submission.

 

What Importers Need to Know

U.S. Customs and Border Protection has begun issuing First Sale Valuation Questionnaires to importers as part of a current review of transaction value practices. The request applies broadly to all entries made between January 1, 2023, and December 31, 2025, and includes all manufacturer identification codes (MIDs) declared during that period.

 

For the purposes of this review, "first sale" refers to instances where the importer declares transaction value based on an earlier sale in a multitier supply chain—such as manufacturer → intermediary → U.S. importer—rather than using the price paid in the final sale to the U.S. buyer. The questionnaire asks importers to confirm whether First Sale was used, identify entry periods involved, and describe the records maintained to substantiate those claims. Importers who did not use First Sale must confirm whether transaction value was based exclusively on the final sale, and if not, must explain alternative valuation approaches.

 

CBP requires acknowledgment of receipt within five (5) business days and submission of the full questionnaire within thirty (30) days, with no extensions permitted. The legal basis for the request is provided under 19 U.S.C. and 19 C.F.R. §163.6, which outlines CBP's authority to request records and information necessary for ensuring compliance. Failure to respond within the required timeframe may lead to penalties.

 

Notably, CBP has attached Treasury Decision 9687 (TD 9687), an important interpretive document outlining the legal standards and documentary requirements for substantiating First Sale valuation. Importers are advised to review TD 9687 carefully to ensure their questionnaire responses accurately reflect their procedures and recordkeeping.

 

Is timing a coincidence?

The issuance of this questionnaire aligns closely with Senator Cassidy's recently introduced bill aimed at eliminating First Sale valuation. While CBP has not stated that this review is tied to the legislation, the overlap has raised questions across the trade community about whether CBP is intensifying scrutiny as part of a broader policy shift. Whether it is coincidence or coordinated effort, importers should assume that their First Sale claims may be subject to heightened review in the coming months.

 

What importers should do now

  • Acknowledge receipt promptly as required.
  • Complete the questionnaire thoroughly and accurately, ensuring consistency with internal valuation practices and documented procedures.
  • Confirm that supporting records exist, even though CBP is not requesting them yet—they may be requested later.
  • Review TD 96‑87 to ensure your responses align with CBP's expectations for multi‑tiered valuation transactions.
  • Evaluate internal First Sale practices, including supplier relationships, documentation flows, and record retention.
  • Consider conducting an internal review with your customs counsel or trade advisor if First Sale is used frequently or for high value commodities.

 

CBP's outreach signals renewed attention on valuation—importers should treat this as a compliance priority and prepare accordingly.

 

If you would like assistance reviewing your valuation practices, your documentation, or preparing your responses, our team is here to help.

 

EVENT: NCSD's March & April Webinar Schedules

March 24, 2026 – April 9, 2026 | 1:30 PM ET | Webinar

 

U.S. Customs and Border Protection’s Office of Trade’s National Commodity Specialist Division (NCSD) is hosting the following webinars in the month of March and April as a part of the 2026 NCSD webinar series. These webinars are scheduled for 1:30 p.m. ET.

 

To register for these free webinars, click on the registration link for the coordinating webinar below. All registrants will receive the link for the webinar on their confirmation email, but entry into the webinar is on a first-come, first-served basis as seats are limited. After the live event, this and other previously recorded webinars will be available for replay at Trade Outreach Webinars | U.S. Customs and Border Protection (cbp.gov). 

 

These webinars are a part of CBP’s Continuing Education program.

 

NCSD's March Webinar Schedule:

  • Tuesday, March 24, 2026: Parts of General Use – The “Parts of General Use” is part of the 2026 Educations Commodity Specific Webinar Series hosted by the National Commodity Specialist Division, Regulations and Rulings, Office of Trade. This webinar is an overview of what is considered a part.
  • Thursday, March 26, 2026: Stepping Forward in Smart Kicks – The “Stepping Forward in Smart Kicks” is part of the 2026 Educations Commodity Specific Webinar Series hosted by the National Commodity Specialist Division, Regulations and Rulings, Office of Trade. This webinar will explain the classification of smart footwear. 

 

NCSD's April Webinar Schedule:

  • Tuesday, April 7, 2026: The Classification of Steel Bars and Rods in Chapter 72– The “The Classification of Steel Bars and Rods in Chapter 72” is part of the 2026 Educations Commodity Specific Webinar Series hosted by the National Commodity Specialist Division, Regulations and Rulings, Office of Trade. This webinar will cover the tariff classification of chapter 72.
  • Thursday, April 9, 2026: Plates, Sheets, Film, Foil & Strip of Plastics– The “Plates, Sheets, Film, Foil & Strip, of Plastics” is part of the 2026 Educations Commodity Specific Webinar Series hosted by the National Commodity Specialist Division, Regulations and Rulings, Office of Trade. This webinar will focus on the nuances of classification of plates, sheets, film, foil, and strip of plastics in headings 3920 and 3921 of the Harmonized Tariff Schedule of the United States. It will examine the applicable legal notes and Explanatory Notes.