Potential Path to Refunds
On December 15, 2025, the U.S. Court of International Trade (CIT) issued an important decision in AGS Company Automotive Solutions v. United States, providing clarity for importers seeking refunds of tariffs imposed under the International Emergency Economic Powers Act (IEEPA).
This case is separate from V.O.S. Selections v. Trump, which is currently pending before the U.S. Supreme Court and addresses whether the IEEPA tariffs are lawful in the first place.
What the Court Decided
In AGS Company Automotive Solutions, the CIT made two key rulings:
- If the Supreme Court ultimately rules the IEEPA tariffs unlawful, the CIT has the authority to order refunds, even for imports that have already been finalized by U.S. Customs and Border Protection (CBP).
- The CIT will retain jurisdiction over refund claims for at least two years, which is the applicable statute of limitations under federal law.
As a result, importers generally do not need to rush to court now to preserve their right to seek refunds, assuming the Supreme Court issues its decision in the coming months, as expected.
Why This Matters
Many importers were concerned that once CBP “liquidates” an entry—meaning it finalizes the amount of duty owed—the opportunity to challenge those duties would be lost.
The CIT rejected that concern. The court held that liquidation does not prevent it from later ordering a recalculation of duties (“reliquidation”) and issuing refunds if the IEEPA tariffs are found unlawful.
Because of this, the court ruled that it was unnecessary to pause or suspend liquidation while the Supreme Court considers the underlying legality of the tariffs.
What Importers Need to Know Now
- You do not need to file immediate protests or lawsuits solely to preserve refund rights.
- If the Supreme Court invalidates the IEEPA tariffs, refunds may occur:
- ◦through an administrative refund process established by CBP, or
- ◦through lawsuits filed to recover amounts owed.
- The statute of limitations for seeking refunds is two years, measured conservatively from the date the tariffs were published.
Key Dates
- IEEPA tariffs on imports from China, Mexico, and Canada were published on February 7, 2025.
- IEEPA “reciprocal” tariffs on imports from all other countries were published on April 7, 2025.
This decision provides important clarity and breathing room for businesses while the Supreme Court resolves the constitutional challenge to the IEEPA tariffs.