Listen to this post

On July 15, 2026, the Court of International Trade (CIT) issued an order which is the clearest indication of the next steps for addressing the status of finally liquidated entries where IEEPA tariffs were paid. Specifically, the CIT expects U.S. Customs and Border Protection (Customs) to launch Phase 3 of its CAPE platform for tariff refunds. The CIT’s order states that the court will issue case-specific orders in each of the approximately 3,700 individual IEEPA cases that “directs Customs to reliquidate certain finally liquidated entries in accordance with a procedure that will be outlined in the anticipated order.”

Importantly, the CIT has also selected a new lead case, as the plaintiff in Euro-Notions intends to voluntarily dismiss its case. The new lead case will be Freestyle World Inc. v. United States. Of note, Freestyle World (along with V.O.S. Selections) has a pending motion for class certification. The CIT’s order indicates that Rule 23 class certification proceedings may take place soon. The CIT, in other words, is considering a class action mechanism to enable refunds for all entries that have reached final liquidation—at least for those importers who fit the class definition in a to-be-certified class. 

Finally, we reiterate that the U.S. government’s position has been that Customs lacks authority to reliquidate finally liquidated entries or issue a refund absent a specific court order. The CIT previously issued a universal order requiring refunds for all entries, even if finally liquidated, regardless of whether the corresponding importer had filed a complaint in court. The legality of that universal order is currently pending on appeal at the Court of Appeals for the Federal Circuit (Federal Circuit).

As a result, companies and importers who have finally liquidated entries have potentially three options to ensure refund eligibility, regardless of what happens at the Federal Circuit. First, those importers who have already filed individual complaints under §1581(i) should be able to submit requests for refunds during the CAPE Phase 3 process. Second, for importers who have not yet filed complaints, it may be prudent to do so at this time. And third, importers who have not yet filed complaints could also await the class certification process, as a certified class would cure the universal-order problem. But class certification is not a guarantee the class definition could change (which would impact who falls within the class), and the government could oppose certification or appeal a certification order. 

Husch Blackwell’s International Trade and Supply Chain team will continue to monitor and provide updates as they become available. If you have company specific questions or concerns please contact your Husch Blackwell attorney. 

Print:
Email this postTweet this postLike this postShare this post on LinkedIn
Photo of Nithya Nagarajan Nithya Nagarajan

Nithya’s extensive background in U.S. trade issues spans 25 years and includes various roles in a number of federal government agencies, including the Department of Commerce Department of Justice, and the U.S. Court of International Trade. She assists clients with administrative and regulatory…

Nithya’s extensive background in U.S. trade issues spans 25 years and includes various roles in a number of federal government agencies, including the Department of Commerce Department of Justice, and the U.S. Court of International Trade. She assists clients with administrative and regulatory actions before the Department of Commerce, International Trade Commission and U.S. Customs and Border Protection (CBP) and defends clients in appeals before the Court of International Trade, Court of Appeals for the Federal Circuit, NAFTA panels and the World Trade Organization. In addition to her body of U.S. experience, Nithya is also well-versed in international trade issues in China and India.

Photo of Cortney Morgan Cortney Morgan

An experienced attorney in the area of international trade and supply chain issues, Cortney advises foreign and domestic clients on all aspects of international trade regulation, planning and compliance, including import (customs), export controls, economic sanctions, embargoes, international trade agreements and preference programs.

Photo of Joseph Diedrich Joseph Diedrich

Joe is frequently tapped to represent clients in appellate and trial courts, when compelling written communication matters most. He has advocated for clients through all stages of litigation, including at the U.S. Supreme Court, the Seventh Circuit Court of Appeals and the Wisconsin

Joe is frequently tapped to represent clients in appellate and trial courts, when compelling written communication matters most. He has advocated for clients through all stages of litigation, including at the U.S. Supreme Court, the Seventh Circuit Court of Appeals and the Wisconsin Supreme Court, as well as in trial courts across the country.

Photo of Michael Klebanov Michael Klebanov

Clients turn to Michael for high-stakes class action defense and appellate litigation. With his expertise in bet-the-company class actions, he defends a variety of challenges to companies’ practices and products, including claims based on breach of contract, warranties, product mislabeling and misrepresentation, deceptive…

Clients turn to Michael for high-stakes class action defense and appellate litigation. With his expertise in bet-the-company class actions, he defends a variety of challenges to companies’ practices and products, including claims based on breach of contract, warranties, product mislabeling and misrepresentation, deceptive trade practices, negligence, RICO and securities violations. Michael also has multidistrict litigation (MDL) experience.