The U.S. Court of International Trade has ruled that liquidation may continue for entries subject to tariffs imposed under the International Emergency Economic Powers Act (IEEPA) while related legal challenges remain pending. The court declined to pause liquidation, finding that importers are not at risk of losing potential refund rights if the tariffs are ultimately invalidated.
WHAT IS THE CURRENT STATUS OF LIQUIDATION FOR IEEPA TARIFF ENTRIES?
Entries subject to IEEPA tariffs may continue to liquidate during ongoing litigation. The court determined that liquidation itself does not cause irreversible harm because the court retains authority to order reliquidation at a later date if the tariffs are found unlawful.
DOES LIQUIDATION AFFECT AN IMPORTER’S ABILITY TO RECEIVE A REFUND?
The court confirmed that liquidation does not eliminate the possibility of refunds. If a final decision invalidates the tariffs, entries that have already been liquidated may be reliquidated, allowing duties to be refunded with interest where applicable. This clarification reduces uncertainty for importers managing entries during the appeals process.
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