Federal Circuit Court Clears Way for Refunds

A federal appeals court denied the government’s case that sought to delay the process for refunding billions of dollars’ worth of tariffs that the Supreme Court struck down on February 20.

The U.S. Court of Appeals for the Federal Circuit opened the next phase in the refund process by sending it to the Court of International Trade (CIT). The Supreme Court ruled last month that the tariffs that President Trump imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful. The high court, however, did not address refunds because it was not a question before the court. That process now falls to CIT to sort out.

The Justice Department had asked the Federal Circuit to delay issuing its mandate returning the case to CIT, NBC News reported. Specifically, the government asked the court to wait for the Supreme Court to formally finalize its judgment — a process that typically takes about 32 days — and then impose an additional 90-day stay before remanding the case. The government argued that the delay would allow Congress an opportunity to formulate a legislative solution for refunds. The federal appeals court rejected the administration’s request and sent a mandate to the Court of International Trade.

American businesses and consumers eagerly await instructions on the refund process. Most experts agree that the party that paid the tariffs – the Importer of Record – will qualify for the refund. But in the postal environment, it could be tricky as there is no precedent. The Qualified Party, not the foreign post, remitted payment to Customs and Border Protection, so should be the party entitled to refunds. That is, if CIT agrees that all harmed parties are due refunds.