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DOJ Appeal Injects New Doubt Into Tariff Refund Timeline for Importers

The Department of Justice's appeal of a Court of International Trade ruling is complicating the tariff refund process for U.S. importers seeking to recover duties paid under now-repealed trade measures.

The DOJ filed its appeal June 2, challenging an April CIT order that directed broad refunds for tariffs imposed under the International Emergency Economic Powers Act. The agency contends the court overstepped by extending relief to entries already liquidated and importers outside the lawsuit.

The appeal threatens to create additional obstacles for companies pursuing recovery, according to Michael Lowell, chair of the Global Regulatory Enforcement Group at Reed Smith.

As of May 22, U.S. Customs and Border Protection had processed roughly $85 billion in refund requests, with $20.6 billion approved and forwarded to Treasury. The government previously estimated total refunds could reach $166 billion. The legal challenge now introduces uncertainty into both the timeline and scope of future disbursements.