Direct Answer
IEEPA tariffs were imposed under the International Emergency Economic Powers Act and struck down by the Supreme Court on February 20, 2026 — they are fully refundable through CBP's CAPE system. Section 301 tariffs on China-origin goods were imposed under the Trade Act of 1974, have not been struck down, remain in effect, and are not refundable through CAPE.
The Supreme Court’s February 20, 2026 ruling in Learning Resources v. Trump opened $166 billion in IEEPA refunds for 330,000 importers of record across 53 million entry summaries. As of June 29, 2026, $71.06 billion has been certified and sent to Treasury through CBP’s CAPE system in the ACE Secure Data Portal (Phase 1, Phase 2, and Phase 3), with statutory interest accruing at approximately $650 million per month under 19 U.S.C. § 1505.
IEEPA vs Section 301 — Key Differences
What is the difference between IEEPA and Section 301 tariffs?
Step 1
Legal Authority: Two Different Statutes
IEEPA tariffs were imposed under the International Emergency Economic Powers Act (50 U.S.C. § 1701 et seq.), which the President invoked to declare trade emergencies. Section 301 tariffs are imposed under Section 301 of the Trade Act of 1974, which authorizes tariffs to address unfair foreign trade practices — a different legal authority with a different process, different rates, and different legal status.
Step 2
Legal Status: One Struck Down, One Standing
The Supreme Court's February 20, 2026 ruling in Learning Resources v. Trump held IEEPA does not authorize tariffs — making all IEEPA duties unlawfully collected and refundable. Section 301 tariffs were NOT addressed by this ruling. Section 301 tariffs have been upheld by courts and remain in effect. There is no pending Supreme Court case threatening Section 301's legality.
Step 3
Refund Eligibility: CAPE vs. None
IEEPA tariffs are refundable through CBP's CAPE system for eligible entries — $71.06 billion has already been certified to Treasury. Section 301 tariffs on China goods are not refundable through CAPE. If you paid Section 301 duties on China-origin goods, those are not part of your IEEPA refund claim. Only the IEEPA Chapter 99 duty amount on each entry line is refundable.
Step 4
HTS Codes: How to Tell Them Apart on Your Entry
On your CBP Form 7501 entry summary, IEEPA duties appear as Chapter 99 HTS codes in the 9903.01.xx and 9903.02.xx ranges. Section 301 duties on China-origin goods appear as Chapter 99 HTS codes in the 9903.88.xx range. Both appear on the same entry summary for China-origin goods. Only the 9903.01.xx and 9903.02.xx lines are IEEPA duties — and therefore CAPE-eligible.
Step 5
Effective Rates: What Stacked on China Goods
During the IEEPA duty period, China-origin goods paid a stacked effective rate: MFN base rate + Section 301 rate (25–100% depending on list) + IEEPA rate (20%). For most electronics, the IEEPA 20% is the only component refundable through CAPE. Section 301 rates remain. After Section 122 expires July 24, 2026, a new 10–12.5% Section 301 layer may be added under USTR's proposed replacement rates.
Common Questions
Frequently Asked Questions
Are Section 301 tariffs on China refundable?
No. Section 301 tariffs were not struck down and are not refundable. Only IEEPA tariffs — identified by Chapter 99 codes 9903.01.xx and 9903.02.xx on your entry summaries — are refundable through CAPE.
What HTS code identifies IEEPA duties on my entry?
IEEPA duties appear under Chapter 99 HTS subheadings 9903.01.xx (for most countries) and 9903.02.xx ranges on your CBP Form 7501 entry summary. Section 301 duties on China-origin goods appear under 9903.88.xx — a different Chapter 99 range that is not CAPE-eligible.
Does the IEEPA refund affect my Section 301 duty liability?
No. The IEEPA ruling and CAPE refund process affect only IEEPA duties. Your Section 301 tariff liability on China-origin goods is unchanged. You owe the same Section 301 rates as before — only the IEEPA layer is being refunded.
Will Section 301 tariffs ever be refundable?
Not under the current legal framework. Section 301 tariffs have been upheld by courts. USTR is proposing additional Section 301 rates after Section 122 expires. There is no pending legal challenge that would make existing Section 301 duties refundable.
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Note: On China-origin entries, both IEEPA and Section 301 Chapter 99 codes appear on the same Form 7501. Your CAPE Declaration must include only the entry numbers — CAPE removes only the IEEPA codes automatically. Section 301 codes are unaffected by CAPE processing.
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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.