The following was taken from an overview provided to the NCBFAA from Legislative Advisors Sandler, Travis & Rosenberg, P.A.

1. CIT rendered its decision that the IEEPA tariffs were unlawful.
2. CIT issued an order that the IEEPA tariffs, executive orders, and amendments were to be declared invalid, that they be revoked, and that the government has ten (10) calendar days (until June 7th) to effectuate the order.
3. The Government filed an appeal to the Court of Appeals in the Federal Circuit (CAFC).
4. The Government filed a motion at the CAFC to stay the CIT order for at least seven (7) days to allow the CAFC and, if necessary, the Supreme Court to consider their longer-term request.
5. The CAFC granted the Government’s request to stay the CIT order (hold off on revoking the Executive Orders) until they have time to consider their request for the longer term.
6. The District Court issued its decision that the IEEPA is not a law providing for tariffs, and therefore the CIT does not have jurisdiction. They also granted the preliminary injunction requested for the two (2) plaintiffs, only (not all importers).
7. The District Court held off on issuing its order for fourteen (14) days, allowing the Government to file an appeal.

 So, what does all of the above mean to importers and their customs brokers?

Tariffs: For the time being, tariffs will remain in place. The appeals court ordered that no action be taken until they have had time to consider the request to stay the order for the long term. So, it is a temporary stay, pending further consideration for a long-term suspension once the parties have both offered their position to the court. Meanwhile, importers will still need to pay the tariffs.

Jurisdiction: Right now, we have two (2) courts that have decided that they have jurisdiction to decide the cases. We must wait to see whether the CIT ultimately has jurisdiction and we follow its orders, or if the District Court has jurisdiction and we follow its orders. 

Refunds: At the end of the day, it is possible that importers will be eligible for refunds equivalent to the duties paid variously for the IEEPA Fentanyl, the IEEPA Fentanyl and Border, and the IEEPA Reciprocal tariffs retroactive to the first day of application (either February 4th or April 5th). However, until all the court issues are straightened out, importers cannot correct entries using a post summary correction (PSC) or file entries without the IEEPA tariffs. Additionally, it may not get sorted out until after the entries liquidate, at which time importers will need to file protests to protect those entries and keep them open for when the courts have settled the issue. 

Action: Importers should track all entries for which any IEEPA tariffs were paid and include the expected liquidation date, as well as the last day to file a protest (180 days from liquidation). As the case progresses, we will then know for which entries to either file a PSC if the shipment is not liquidated, or to file a protest if it is liquidated. This data will also provide an expectation of potential refunds. Note that EVERYONE will be seeking refunds if the Executive Orders are eventually cancelled, so set expectations for how timely any eventual refunds with interest will be paid. It would not be unreasonable to expect refunds, if any, to not come until later in 2026 or even in 2027.

RIM logistics, ltd. will continue to closely monitor this evolving situation and provide updates as necessary. Please reach out to your RIM representative if you have any further questions.