Key Takeaways
- • Class counsel in Freestyle World, Inc. v. United States filed a motion at the U.S. Court of International Trade on Tuesday seeking a relief order that would return IEEPA tariff refunds to all of the more than 330,000 importers of record, whether or not they sued.
- • The relief motion targets roughly $166 billion in tariff refunds collected under IEEPA levies that the Supreme Court ruled exceeded presidential powers in February.
- • More than $115 billion had been disbursed through CBP's CAPE system as of August, leaving thousands of smaller importers without refunds due to technical errors, lack of legal resources, or paperwork issues.
- • The Trump administration contends that CBP can only refund money with a court order and that refunds should be limited to importers who sued, and it has appealed Judge Richard Eaton's universal refund order.
- • The DOJ must answer the initial complaint by Nov. 13 and respond to the relief motion by Dec. 9.
Summary
The Supreme Court's February ruling that tariffs imposed under the International Emergency Economic Powers Act exceeded the president's powers opened the door to hundreds of billions of dollars in refunds. According to the article, more than $115 billion had been disbursed as of August through Customs and Border Protection's Consolidated Administration and Processing of Entries (CAPE) system. Thousands of importers, including small businesses and individuals who bought tariffed goods online, have not yet been repaid, citing technical CAPE submission errors, limited legal resources, missing paperwork, or reliance on third-party importers of record.
The Trump administration opposes universal refunds. Judge Richard Eaton, who presides over all tariff refund cases, ruled in March that all importers who paid IEEPA tariffs were entitled to refunds and issued a universal refund order the following month. The government appealed in June, arguing Eaton exceeded his authority and that CBP cannot refund money without a court order to importers who sued. The Justice Department stated, "CBP has no authority to reliquidate or refund money without a court order." Eaton has argued that Supreme Court limits on universal injunctions do not apply to the Court of International Trade, which has exclusive jurisdiction over trade matters.
The article also notes that the midterm elections may increase political pressure on the refund process. Sen. Elizabeth Warren (D-Mass.) wrote to CBP in June urging faster processing, accusing the administration of slow-walking refunds. Sen. Ron Wyden (D-Ore.), likely incoming chair of the Senate Finance Committee, is leading Democratic efforts to repeal specific tariffs, beginning with Canada. The DOJ must file its answer to the complaint by Nov. 13 and respond to the relief motion by Dec. 9. The DOJ did not immediately respond to Fortune's request for comment.
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