Government Signals Appeal of CIT IEEPA Refund Ruling
On Friday, May 29, the Justice Department indicated it intends to appeal the Court of International Trade’s (CIT’s) International Emergency Economic Powers Act (IEEPA) tariff refund ruling, increasing the likelihood that importers excluded from Consolidated Administration and Processing of Entries (CAPE) Phase 1 may need to pursue litigation to obtain refunds.
The government categorized importers into three groups:
- Unliquidated or not finally liquidated entries (over 80 days from liquidation)
- Finally liquidated entries where lawsuits have already been filed
- Finally liquidated entries where no lawsuit has been filed
Customs and Border Protection’s (CBP’s) position is that Group 1 entries may still be eligible for refunds through the CAPE refund process.
For Group 2 importers, the government argues that refunds may be available only through importer-specific court orders tied to active litigation.
For Group 3 importers, the government asserts that there is no legal authority to issue refunds on finally liquidated entries unless the importer has filed a lawsuit, and it plans to oppose any broader refund orders.
The filing suggests that a CAPE Phase 2 process for finally liquidated entries is becoming increasingly unlikely. Importers with expired CAPE filing windows may need to consider protests or litigation to preserve potential refund rights.
White House Further Adjusts Section 232 Tariffs on Steel, Aluminum and Copper Imports
On June 2, 2026, President Trump issued a proclamation further adjusting Section 232 tariff measures on imports of aluminum, steel and copper products. The changes take effect for goods entered for consumption on or after 12:01 a.m. EDT on June 8, 2026.
The proclamation expands and modifies tariff treatment for a variety of derivative products, including agricultural equipment, industrial machinery, HVAC systems and mobile industrial equipment.
Key changes:
- Agricultural equipment and certain residential HVAC systems/components have been added to the Annex III category of derivative products eligible for the temporarily reduced duty rate through Dec. 31, 2027.
- Tariff treatment for certain mobile industrial equipment and machinery used in factories and businesses has also been temporarily modified on a newly created Annex I-C through Dec. 31, 2027.
- Two additional product categories that were not previously subject to Section 232 aluminum and steel duties were added to Annex I-B.
- Aluminum lithographic plates
- Steel racks
- The domestic content threshold for products considered made “entirely” from U.S. aluminum, steel or copper was lowered from 95% to 85% by weight.
