A US federal court has approved a class-action lawsuit covering importers who paid tariffs subsequently ruled unlawful, potentially opening the door to billions of dollars in refunds for businesses that have not pursued individual claims.
A ruling by the US Court of International Trade on 8 October could significantly expand access to refunds for tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
The decision allows eligible importers to pursue collective legal action to recover duties paid between 1 February 2025 and 19 February 2026.
It follows the Supreme Court's February ruling invalidating the tariffs and subsequent efforts by US Customs and Border Protection (CBP) to reimburse affected businesses.
Importantly, the latest decision does not automatically authorise refunds. It establishes a legal pathway through which qualifying importers may seek recovery without filing individual lawsuits.
A broader route to tariff recovery
More than 4,000 lawsuits have already been filed challenging the IEEPA tariffs, but many businesses have not taken legal action.
The newly certified class covers importers of record who paid the affected duties during the specified period, excluding those that have already filed separate lawsuits seeking recovery.
Eligible importers are included automatically and do not need to register individually to join the class.
The court's decision is particularly significant for smaller businesses that may have been discouraged from pursuing refunds by legal costs, administrative requirements or uncertainty about the process.
Approximately $166 billion was collected under the invalidated tariffs, with more than $100 billion reportedly refunded through CBP's existing arrangements.
However, the court estimates that approximately $30 billion could remain unrecovered without a broader mechanism to protect importers that have not submitted claims.
The class action seeks to address that gap.
Refunds remain subject to further proceedings
Although the court has certified the class, several legal and administrative questions remain unresolved.
The lawsuit seeks an order requiring CBP to liquidate or re-liquidate affected customs entries without the invalidated IEEPA duties, allowing the corresponding amounts to be refunded.
CBP has already established its Consolidated Administration and Processing of Entries (CAPE) system to manage IEEPA refunds.
The system is being expanded to accommodate additional entry categories, including certain entries that have already completed customs liquidation.
However, class certification does not guarantee that every eligible importer will receive a refund, nor does it establish when payments might be made.
The US government is also pursuing an appeal concerning the court's authority to order refunds on finally liquidated entries.
Further proceedings could delay the establishment of a comprehensive refund process.
Following a court conference scheduled for 13 October, the parties must submit a proposed timetable for additional proceedings by 22 October.
What US importers should do now
The ruling creates a potentially valuable opportunity, but importers should not assume that refunds will be processed automatically.
Businesses that paid IEEPA duties during the qualifying period should review their customs records and establish which entries may be affected.
Particular attention should be given to:
- Entry identification: Confirm which imports attracted IEEPA duties between 1 February 2025 and 19 February 2026.
- Liquidation status: Identify entries that have been liquidated and those still awaiting final customs assessment.
- Supporting records: Retain entry summaries, duty payment confirmations and relevant customs documentation.
- Existing claims: Establish whether separate legal proceedings have already been initiated.
- Refund developments: Monitor CBP's CAPE system and subsequent court decisions.
Importers should also seek appropriate legal advice, particularly where deadlines for preserving individual refund rights may apply.
The possibility of an appeal means the class-action process could be delayed until spring or summer 2027.
Metro USA: helping importers prepare
For businesses that paid IEEPA tariffs, identifying affected entries and maintaining complete supporting documentation could prove essential to any future refund recovery.
Metro USA's customs brokerage and compliance specialists can help importers review their customs entry records, identify potentially affected shipments and understand the documentation required to support discussions with their legal advisers.
Don't overlook potential tariff recoveries. Speak to Metro USA's customs specialists about reviewing your affected entries and preparing the documentation needed to assess your refund options.
This article provides general information from publicly available sources and does not constitute legal advice.
