Importers weigh claims for billions in duty refunds after Supreme Court voids certain tariffs

The U.S. Supreme Court’s February 20 ruling against tariffs imposed under the International Emergency Economic Powers Act did not itself order checks to be mailed, but it did create the legal opening importers are now trying to use. The court held 6-3 in *Learning Resources, Inc. v. Trump* and *Trump v. V.O.S. Selections, Inc.* that IEEPA does not give a president authority to impose tariffs, according to a Congressional Research Service legal summary. U.S. Customs and Border Protection has since built a refund process rather than leaving companies to guess. CBP says it is developing a system called Consolidated Administration and Processing of Entries, or CAPE, to handle valid IEEPA duty refund requests, including interest, through the agency’s ACE portal. ### Which tariffs did the Supreme Court actually strike down? (congress.gov) The February 20 decision covered two main sets of IEEPA tariffs. The Congressional Research Service said the ruling invalidated tariffs on imports from Canada, Mexico and China tied to declared emergencies over illicit drugs, and another set of tariffs on most other imports tied to a declared emergency over the U.S. trade deficit. (cbp.gov) IEEPA had been used in 2025 in a way no prior president had used it for tariffs. CRS said the statute lets a president “regulate” or “prohibit” some imports during a national emergency, but it does not specifically authorize tariffs, which was central to the court’s holding. ### Where does the “billions in refunds” figure come from? (congress.gov) Penn Wharton Budget Model said on February 20 that reversing the IEEPA tariffs could generate up to $175 billion in refunds. Its analysis said cumulative IEEPA tariff revenue reached about $164.7 billion through January 2026, based on Treasury, CBP and U.S. International Trade Commission data. (congress.gov) CBS News separately reported that businesses could be owed nearly $150 billion in refunds after the ruling. The differing figures reflect estimates from outside analysts, not a final government total announced by CBP or the courts. ### Why aren’t refunds automatic if the tariffs were unlawful? The Supreme Court’s opinion did not spell out a refund mechanism. (budgetmodel.wharton.upenn.edu) Penn Wharton said the ruling opened the door to claims, but importers generally have 180 days after goods are liquidated to protest and request refunds from CBP. Hogan Lovells, Skadden and other trade lawyers have said the key issue after the ruling was procedure, not whether the tariffs survived. (cbsnews.com) Those analyses said the Court of International Trade ordered CBP to move toward refunds, but companies still needed to preserve claims and follow the agency’s filing rules. (budgetmodel.wharton.upenn.edu) ### How is CBP handling claims now? CBP says CAPE is being deployed in phases and that phase one launched on April 20, 2026. The agency says phase one is limited to certain unliquidated entries and certain entries within 80 days of liquidation. Importers of record and authorized customs brokers file CAPE declarations through the ACE Secure Data Portal, using a CSV upload rather than the Automated Broker Interface. (hoganlovells.com) CBP says valid refunds will generally be issued within 60 to 90 days after acceptance of a CAPE declaration unless a compliance concern requires further review. ### Why are retailers like Walmart being mentioned? (cbp.gov) Walmart has surfaced in commentary because large retailers are among the biggest U.S. importers and therefore among the companies with the biggest potential exposure to IEEPA duties. CFO Dive reported on May 22 that Walmart finance chief John David Rainey said potential recoveries would be directed toward lowering prices. (cbp.gov) Walmart has also been named in consumer litigation tied to who ultimately bore the tariff cost. Those allegations are separate from the government refund process, and public summaries of the lawsuit say no settlement has been reached and Walmart had not yet responded as of those reports. ### What happens next for importers? (cfodive.com) April 20 was the start of phase one, not the end of the process. CBP says later phases of CAPE will add functionality for more complicated scenarios, and each CAPE declaration can include up to 9,999 entries. The next practical step for companies is administrative, not judicial. Importers of record and customs brokers must review which entries qualify, file through ACE, and monitor CBP processing times as the agency expands CAPE beyond the first tranche of claims. (openclassactions.com) (cbp.gov)