09/12/2025

U.S. Supreme Court to Hear Challenges to Legality of Trump-Era IEEPA Tariffs

Check out this week's Customs Corner to read about the U.S. Supreme Court hearing challenges to the legality of Trump-Era IEEPA tariffs, clarity from the CBP, and more.

Trade and Customs Updates

1) U.S. Supreme Court to Hear Challenges to Legality of Trump-Era IEEPA Tariffs

The U.S. Supreme Court will hear two cases challenging the legality of Trump-era IEEPA tariffs, with briefs due by October 30 and oral arguments scheduled for the first week of November 2025.

 

On September 9, the U.S. Supreme Court announced it will hear two cases questioning the legality of tariffs imposed under the International Emergency Economic Powers Act (IEEPA) during President Trump’s administration. The cases, titled Learning Resources, Inc. et al. v. Trump, President of U.S., et al. (No. 24-1287) and Trump, President of U.S., et al. v. V.O.S. Selections, Inc., et al. (No. 25-250), have a final brief filing deadline of October 30. Oral arguments are scheduled for the first week of the Court’s November 2025 session. 

 

As indicated in last week’s Customs Corner there are still a lot of uncertainties as to how CBP will handle these entries if refunds are due.

 

Uncertainties for Importers 

  • No CBP guidance has been issued on whether importers should: 
    • Request liquidation extensions, or 
    • File placeholder protests to preserve refund rights. 
  • If the Supreme Court upholds the invalidation, importers may be eligible for refunds, but: 
    • Unliquidated entries may require Post Summary Corrections (PSCs). 
    • Liquidated entries will likely require formal protests within 180 days of liquidation (per 19 CFR § 174.12). 
  • It is unclear whether CBP will establish a claims process or allow retroactive relief. Shape 

 

Recommended Actions 

  • Monitor all entries subject to IEEPA tariffs and maintain detailed records. 
  • Track liquidation dates and prepare to file protests within the statutory window. 
  • Consult legal counsel to evaluate whether to request liquidation extensions or file protective protests. 
  • Stay informed on court developments, especially the Supreme Court’s decision on whether to hear the case. 

2) CBP Clarifies Timeframes for Resubmitting Rejected Trade Remedy Entry Summaries

CBP has clarified that rejected AD/CVD and trade remedy entry summaries can be returned within 60 days (or 300 days with supervisory approval), and importers have 10 working days to resubmit corrections for entries subject to tariffs under statutes such as IEEPA, Section 232, Section 301, and Section 201.

 

U.S. Customs and Border Protection (CBP) has issued new guidance regarding the resubmission timelines for entry summaries rejected due to trade remedy duties, including Antidumping and Countervailing Duty (AD/CVD) cases.

 

According to the clarification, CBP officers may reject AD/CVD and other trade remedy entry summaries within 60 days of filing without requiring supervisory approval. With supervisory approval, this rejection period extends up to 300 days.

 

Once an entry summary is rejected, importers and brokers in the trade community have a window of 10 working days to correct and resubmit these AD/CVD or trade remedy entry summaries.

 

Trade remedy entry summaries covered by this guidance include those subject to tariffs under the International Emergency Economic Powers Act (IEEPA), Section 232 of the Trade Expansion Act of 1962, Section 301, and Section 201 of the Trade Act of 1974.

 

Reference:

CSMS # 66200760 - Updated Guidance: Resubmission Timeframe for Rejected Entry Summaries with Trade Remedy Duties

3) CBP Instructs Trade Community to Await Further Guidance on Retroactive Japan Tariffs

A new Executive Order imposes a 15% tariff on most Japanese imports—with specific provisions for certain sectors—retroactively effective from August 7, 2025, and instructs the trade community to await further CBP guidance before filing for refunds or corrections.

 

On September 4, 2025, the White House signed an Executive Order (EO) implementing the United States–Japan Agreement under the International Emergency Economic Powers Act, establishing a baseline 15 percent ad valorem duty on nearly all Japanese imports. The EO also introduces sector-specific measures for products such as automobiles and parts, aerospace goods, generic pharmaceuticals, and certain natural resources not produced in the U.S.

 

A key aspect of the EO is a retroactive clause, outlined in subsection 2(d), which mandates that the new tariffs apply to Japanese goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. EDT, August 7, 2025. Refunds related to these tariffs will be handled according to existing laws and the standard U.S. Customs and Border Protection (CBP) procedures.

 

Importers and members of the trade community are advised not to file Post Summary Corrections or protests concerning these retroactive tariffs until CBP issues further instructions. 

 

CBP will provide additional guidance on refund processing and compliance steps through forthcoming Cargo Systems Messaging Service (CSMS) messages.

 

Reference:

CSMS # 66146676 - INTERIM GUIDANCE: Retroactive Implementation of the United States-Japan Agreement

4) CBP Clarifies Refund Process for IEEPA Tariffs via USMCA 1520(d) Claims

CBP has clarified that importers can seek refunds of IEEPA tariffs through USMCA 1520(d) post-importation claims—filed within one year of import—using the ACE protest module, paper, or FTA reconciliation entry, with specific procedures for flagged entries and no allowance for classification changes on reconciliation entries.

 

U.S. Customs and Border Protection (CBP) has updated its IEEPA FAQs to clarify that goods subject to tariffs under the International Emergency Economic Powers Act (IEEPA) may be eligible for refunds of those duties through post-importation USMCA claims, provided the importer of record submits a valid and substantiated claim within one year of importation.

 

According to the September 10 update, “An importer of record who can substantiate a valid claim for preferential tariff treatment under the USMCA may file a claim pursuant to 19 U.S.C. § 1520(d) within one year of the date of importation. The 1520(d) claim may include additional “IEEPA duties” paid pursuant to Executive Order (E.O.) 14193, as amended, and E.O. 14194, as amended. 1520(d) claims that include additional “IEEPA duties” need to be filed via the ACE protest module, paper or a Free Trade Agreement (FTA) reconciliation entry.”

 

Reference:

International Emergency Economic Powers Act (IEEPA) Frequently Asked Questions | U.S. Customs and Border Protection

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