Government Argues Importer-Specific Orders Required for Refunds of Fully Liquidated IEEPA Tariffs, Vows to Appeal Prior Orders

In a motion filed on May 29 in V.O.S. Selections v. Trump, the Government argued that importer-specific court orders are needed for it to provide refunds for International Emergency Economic Powers Act (“IEEPA”) tariff entries that have been “fully” liquidated—that is, those that are more than 90 days after liquidation. As we predicted (see here, here, and here), the Government has now made clear that it will appeal the Court of International Trade’s (“CIT”) prior orders that sought to give universal relief to all importers, including those that have not filed suit. As we previously explained (here), the unprecedented nature and breadth of the CIT’s universal relief orders make them vulnerable to reversal on appeal, especially in light of the Supreme Court’s recent decision in Trump v. CASA, Inc., 606 U.S. 831 (2025), which curbed district courts’ authority to issue universal injunctions that grant relief to nonparties. As also previously explained (here), it is unlikely that the appeal will be decided before the two-year statute of limitations expires for most, if not all, IEEPA duty payments. Thus, the most assured way for importers with fully liquidated entries to secure their rights—indeed, perhaps the only way if these predictions come to fruition—is to file an action at the CIT.
 
The Government filed the motion in response to the CIT’s May 27 show cause order on whether it should mandate immediate compliance with its April 19 order, which requires the Government to issue refunds for all IEEPA duties paid, regardless of liquidation status (see here). The Government’s motion focused in large part on the CIT’s ordering of the U.S. Customs and Border Protection (“CBP”) Commissioner to testify at a June 9 hearing, but the Government also made clear that it will not voluntarily issue refunds for fully liquidated entries. The Government argues that it lacks the authority to refund fully liquidated duties without importer-specific court orders and that the CIT’s April 19 universal relief order exceeds the court’s authority under Trump v. CASA. The Government further made clear that it intends to appeal the CIT’s April 19 order and to request a stay except for those with importer-specific orders from the CIT. The Government’s deadline to appeal the April 19 order is June 16.
 
The CIT quickly denied the Government’s motion insofar as it seeks to avoid testimony from the CBP Commissioner. Nevertheless, it seems clear that an impasse is imminent: the CIT will likely order the Government to fully comply with its April 19 order and the Government will appeal.