IMPORTANT-PLEASE SHARE: CBP reports that they have 19,726 refunds totaling $1.6B that are approved but they cannot transmit because the ACH information is either not on file or is incorrect.
*****If you submitted your entries and have not received any refunds after 6 weeks–CHECK YOUR ACH INFORMATION. CBP is trying to notify importers, but we want to alert you to this issue as well.
Phase 3: Finally Liquidated Entries
The next major fight is Phase 3.
Phase 3 deals only with finally liquidated entries. These are entries that are outside CBP’s ordinary reliquidation window.
Right now, CBP is making refunds for finally liquidated entries available only to importers who have filed a separate lawsuit. That is a serious problem. Individual lawsuits can cost tens of thousands — or even hundreds of thousands — of dollars, which is not a realistic option for many small and mid-sized importers.
That is why we are advocating for class certification. This week, we were at the Court of International Trade arguing for an administrative class so that importers who paid IEEPA tariffs are not shut out of refunds simply because they did not file their own lawsuit.
The key point is this: the type of class we are asking for would automatically include eligible importers by default. Importers would not have to individually opt in or file their own lawsuits just to preserve access to the refund process.
At the hearing, we discussed two potential paths with the Court.
–>One path would be to reliquidate finally liquidated entries for the class. If those entries are reliquidated, they would no longer be stuck in the finally liquidated category, and importers could access the CAPE refund process.
–>The other path would be to open CAPE directly to the class so that importers with finally liquidated entries could file for refunds without having to bring separate lawsuits.
Either way, the goal is the same: importers who paid unlawful IEEPA tariffs should be able to seek refunds through an administrative process, not through thousands of individual lawsuits.
We had the hearing on August 6, and I hope we will have some resolution by the end of August. You can listen to the oral arguments HERE
What About the Appeal?
The government is still challenging aspects of the refund process at the appellate level. We have an upcoming proceeding at the Court of Appeals dealing with injunctive relief.
That issue is largely procedural. Refunds are not in jeopardy. If you have received your refunds, those refunds are yours.
What we are trying to sort out now is how best to deal with the final stages of the IEEPA refund process — and how to establish a cleaner path for future refunds we hope to obtain in the Section 122 and Section 301 cases.
Section 122 and Section 301 Updates
The Section 122 case is taking a little longer because of some procedural moves by the government, but it remains on track. We do not yet have a court date, but I am hopeful the argument will be sometime in November.
For Section 301 litigation, we have a tentative oral argument date of September 30. That date still needs final approval by all parties, but LJC has approved it, and our case will serve as the master case in that litigation. More to come on both.