Federal Circuit IEEPA Appeal: What It Means for Your Refund
On June 2–3, 2026, DOJ appealed the Court of International Trade's universal IEEPA refund order to the U.S. Court of Appeals for the Federal Circuit. The appeal does not halt CAPE Phases 1 or 2 — but it directly threatens finally liquidated entry refunds for importers who did not file individual CIT lawsuits. A briefing schedule is now set, with the government's opening brief due August 3, 2026. Here is everything you need to know.
The Supreme Court’s February 20, 2026 ruling in Learning Resources v. Trump held IEEPA tariffs unlawful, opening $166 billion in refunds for 330,000 importers of record. As of July 10, 2026, $86.3 billion has been repaid to importers and $121.75 billion accepted for processing through CBP’s CAPE system.
Following the Supreme Court's February 20, 2026 ruling in Learning Resources v. Trump, CIT Judge Richard Eaton ordered CBP to refund IEEPA duties to all importers of record — not just those who had filed lawsuits at the CIT. DOJ appealed that order on June 2–3, 2026, arguing that the CIT's refund order constitutes an impermissible 'universal injunction' that extends relief to non-plaintiffs in violation of the Supreme Court's 2025 ruling in Trump v. CASA, 606 U.S. 831 (2025). The government's core argument: importers who did not file individual Section 1581(i) lawsuits at the CIT cannot receive automatic refunds through CAPE — especially for finally liquidated entries where CBP's voluntary reliquidation authority has expired. The appeal is docketed in the U.S. Court of Appeals for the Federal Circuit as V.O.S. Selections, Inc. v. United States, No. 26-1895 (consolidated). Separately, the underlying CIT status declarations tracking CAPE's rollout are filed in Euro-Notions Florida v. United States — a related but distinct case from the Federal Circuit appeal itself.
Impact on CAPE Phases
How the Appeal Affects CAPE Phase 1, 2, and 3
Phase 1 — Unaffected. CBP continues to process Phase 1 refunds voluntarily. The appeal does not halt CAPE for unliquidated entries or entries within the 80-day window. Phase 1 processing continues regardless of the Federal Circuit's ultimate ruling.
Phase 2 — Largely unaffected. Phase 2 reconciliation entry processing continues. The appeal's primary target is the universal injunction scope, not CBP's voluntary processing authority for non-final entries.
Phase 3 — Directly threatened, but partially unlocked for some. A July 17, 2026 CIT order from Judge Eaton directed CBP to reliquidate finally liquidated entries without regard to IEEPA duties — but limited that specific relief to the roughly 3,700 companies whose IEEPA cases were already on his docket. Importers who have not filed a CIT complaint are not yet covered by that order. CBP was required to report Phase 3 progress to the court by August 4, 2026. Separately, a class certification motion filed by Liberty Justice Center and Neal Katyal seeks to unlock refunds for importers outside CAPE without requiring individual lawsuits; the government is opposing it. The Federal Circuit's briefing schedule is now set, with the government's opening brief due August 3, 2026.
The CIT-Filers vs. Everyone-Else Split
The Split That Defines Everything: CIT Filers vs. Everyone Else
The Federal Circuit appeal has divided the importer universe into two groups with materially different futures. Group 1 — Filed at CIT: A July 17, 2026 CIT order confirmed reliquidation relief for the roughly 3,700 companies whose IEEPA cases were already on Judge Eaton's docket, covering finally liquidated entries without regard to IEEPA duties. Group 2 — Did not file at CIT (the remaining majority of the 330,000 eligible importers): CAPE Phase 1 and Phase 2 cover what they cover. For finally liquidated entries outside the 80-day window, the government's position is that no automatic refund is coming absent an individual CIT filing — though the pending class certification motion could change that outcome if it succeeds. The Federal Circuit's ruling on the appeal itself is still pending, with the government's opening brief due August 3, 2026. The CIT two-year statute of limitations on refund claims begins expiring in early 2027 for the earliest IEEPA entries (February 2025).
What To Do Now
What Importers Should Do Right Now
The appeal creates urgency in three directions: (1) File CAPE Phase 1 and Phase 2 Declarations immediately for all qualifying entries. The appeal does not affect these phases, and every week of delay loses interest accrual. (2) Consult trade counsel about CIT filing options if you have finally liquidated entries that fall outside Phase 1 and Phase 2 and outside the roughly 3,700 companies already covered by the July 17 order. The two-year SOL window is not infinite, and importers with significant finally liquidated entry exposure should not wait for the Federal Circuit ruling to act. (3) Track the Federal Circuit briefing schedule — the government's opening brief is due August 3, 2026; once filed, it will reveal the full scope of arguments and help clarify the timeline to a ruling. A stay motion grant by the Federal Circuit would be a critical negative signal on the appeal merits. The Tariff Bureau monitors all CIT and Federal Circuit filings related to IEEPA refunds and updates tariffbureau.com/updates as developments occur.
⚠️
Important Note: The Federal Circuit appeal targets the CIT's remedial authority — not the underlying legality of the IEEPA tariffs, which was settled by the Supreme Court in February 2026. Even if the government prevails on appeal, CAPE Phase 1 and Phase 2 refunds continue. The appeal affects only finally liquidated entry refunds for non-CIT-plaintiff importers.
Free • No Obligation • 3 Minutes
Find Out Where Your Entries Stand
TariffIQ™ identifies your CAPE phase position, refund estimate, and next step. Free assessment. No obligation. No recovery, no fee.
Informational only. Not legal, tax, or financial advice. The Tariff Bureau LLC is not a law firm, is not a licensed customs broker, and is not affiliated with CBP or any U.S. government agency. The IEEPA statute of limitations accrual date remains legally unsettled. Consult qualified trade counsel for your specific situation.