In February 2026, The Supreme Court held that tariffs imposed under the International Emergency Economic Powers Act (IEEPA) exceeded the President’s statutory authority, triggering what is likely one of the largest duty refund events in U.S. trade history.
If your company paid IEEPA tariffs, it likely has a refund claim.
IEEPA’s Impact
A U.S. Customs and Border Protection (CBP) court filing estimates that IEEPA resulted in:
- $166 billion in tariffs
- 330,000 affected importers
- 53 million customs entries
The Supreme Court Strikes Down IEEPA
The Supreme Court’s decision invalidated tariffs imposed under IEEPA. Shortly thereafter, CPB ceased collections on IEEPA tariffs following a presidential executive order.
The Court’s ruling applies specifically to IEEPA tariffs, and does not impact duties imposed under Section 232 or Section 301. Importers with mixed tariff exposure should review entries at the line-item level to properly isolate eligible refunds.
How to Tell If You’re Eligible for a Refund
Any U.S. importer of record that paid tariffs under IEEPA may be entitled to a refund, based on guidance from the Court of International Trade (CIT). However, refunds are not expected to be automatic.
Importers will likely need to pursue recovery through CBP’s administrative process and/or take steps to preserve their rights through the CIT. Importers should consult with their customs broker and/or trade counsel to determine the appropriate approach based on their specific facts and entry profile.
Key Considerations for Importers Today
Importers may wish to consider the following in consultation with their customs broker and trade counsel:
ACH Enrollment for Refunds
- CBP is expected to issue refunds electronically.
- Importers that have not enrolled for ACH through their ACE portal may experience delays or complications in receiving funds.
Compilation of Entry Documentation
- Refund claims are expected to require entry summaries, tariff classifications, commercial invoices, and proof of IEEPA duty payment.
- The completeness and organization of this information may impact processing timelines.
Legal Strategy and Claim Preservation
- Importers may need to evaluate liquidation status and potential actions, including filing a Protest, participating in CIT proceedings, or other steps to preserve rights.
- The appropriate course of action will depend on company-specific facts and should be evaluated with trade counsel. Learn more here.
Evaluating Your Refund Options
Waiting for a Refund
The CBP is currently developing a system referred to as CAPE to facilitate refund submissions. Once implemented, importers are expected to file declarations through ACE identifying affected entries. Importers should consult with their customs broker and trade counsel regarding submission requirements once additional guidance is released.
The timeline from submission to refund payment remains uncertain and could extend over multiple years given the scale of affected entries, involvement of multiple government agencies, and the need to implement new administrative processes.
Selling Your Claim
Importers seeking to accelerate recovery may consider monetizing their IEEPA tariff claims through a sale to institutional investors.
- Immediate liquidity: Convert an uncertain, long-dated receivable into cash today
- Risk transfer: Shift legal, timing, and administrative risk to the buyer
- Flexibility: Ability to sell all or a portion of a claim depending on liquidity needs and risk tolerance
- Execution certainty: Transactions are structured to provide defined proceeds upon closing
Pricing for claims will vary based on factors including claim size, the credit profile of the seller, status of any related legal proceedings (including whether a CIT complaint has been filed), and overall market conditions.
For many importers, selling a portion of their IEEPA tariff refund claim can serve as a complement to internal recovery efforts, allowing them to hedge exposure while maintaining participation in potential upside.
How Seaport Global Can Help
Seaport Global specializes in IEEPA claims trading, connecting claim holders and institutional buyers to secure immediate cash for their tariff claims.
Experienced Traders: Seaport Global has traded billions of dollars in claims across some of the most consequential financial and legal events in modern history.
Tailored Approach: Seaport designs transaction structures that reflect each client’s liquidity needs, execution objectives, and timing considerations.
Competitive Marketplace: Seaport’s comprehensive, long-established relationships with institutional investors ensure claim holders achieve the most competitive pricing for their refund assets.
Sell Your IEEPA Claim for Immediate Cash
Seaport Global and Seaport Loan Products LLC provide financial services and are not engaged in the practice of law. This post is for informational purposes only and does not constitute legal or financial advice. Companies should consult qualified trade counsel regarding their specific legal rights and obligations.
