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 the 326,000 importers who did not file individual CIT lawsuits. 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 June 29, 2026, $71.06 billion has been certified and sent to Treasury 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 in the matter of Euro-Notions Florida v. United States, CIT No. 25-595 (underlying case).
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. CBP has explicitly stated that Phase 3, covering finally liquidated entries, will only process refunds for importers who filed individual CIT lawsuits. Under DOJ's current position, the approximately 326,000 importers who did not file at the CIT will not receive Phase 3 refunds through CAPE — regardless of how much they are owed. The Federal Circuit has not yet set a briefing schedule or ruled on any stay motion as of July 10, 2026.
The 4,000 vs 326,000 Split
The Split That Defines Everything: 4,000 vs. 326,000 Importers
The Federal Circuit appeal has divided the importer universe into two groups with materially different futures. Group 1 — Filed at CIT (~4,000 importers): Full coverage across all three CAPE phases. Every entry, every liquidation status, every dollar owed is in the queue. These importers are positioned to recover their full proportional share of the $166 billion in IEEPA duties collected. Group 2 — Did not file at CIT (~326,000 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. The Federal Circuit's ruling — expected in the coming months, with no briefing schedule set as of July 10, 2026 — will determine whether that position stands. The CIT two-year statute of limitations on refund claims begins expiring in early 2027 for the earliest IEEPA entries (March 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. 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) Watch for the Federal Circuit briefing schedule — once set, the government's opening brief will reveal the full scope of arguments and 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.
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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.
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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.