Analysis: Court Orders Zero-Duty Liquidation for IEEPA Tariffs — Stay Likely
Earlier today, the Court of International Trade issued an order directing U.S. Customs and Border Protection to liquidate all as-yet unliquidated entries at zero duties under the tariffs imposed pursuant to the International Emergency Economic Powers Act (IEEPA). The court’s order can be found here.
If implemented as written, the order would effectively require Customs to treat the invalidated tariffs as zero for all importers, not just the plaintiffs in the case.
The government is expected to seek an immediate stay of the order from the U.S. Court of Appeals for the Federal Circuit — and potentially the Supreme Court — in the coming days.
The order raises two significant legal issues that will likely be addressed on appeal:
• whether the court can bypass the statutory protest process governing tariff disputes
• whether relief can extend beyond the plaintiffs in the case
Because the statute governing the Court of International Trade provides that the court possesses the same equitable powers as a federal district court, the order’s attempt to grant relief beyond the parties appears to conflict with the Supreme Court’s decision last year in Trump v. CASA limiting nationwide injunctions.
Companies that paid duties under the invalidated tariff program should continue evaluating whether to file protests to preserve potential refund claims before applicable liquidation deadlines.
Grayhawk Law is advising companies on strategies to preserve and pursue refunds of duties paid under the invalidated tariff program. Companies evaluating potential tariff refund claims may contact Grayhawk Law at info@grayhawklaw.com for additional information.
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Disclaimer: This page is provided for general informational purposes only and does not constitute legal advice. Legal rights and obligations depend on the specific facts and applicable law. Deadlines and procedural requirements may vary by importer and entry. You should consult counsel regarding your particular circumstances.
