Background of the Court Rulings
On February 20, 2026, the U.S. Supreme Court ruled that the imposition of import duties under the International Emergency Economic Powers Act (“IEEPA”) is unlawful.
Consequently, on March 4, 2026, the U.S. Court of International Trade (“CIT”) clarified how to handle duties that had already been collected. The court held that IEEPA duties may no longer be levied in principle. Therefore, IEEPA duties may no longer be charged for ongoing import clearances (so-called “entries”). If such duties have already been assessed and the proceedings have not yet been finally concluded, the duty amounts must be recalculated. Overpaid duties must be refunded.
Meaning of “Liquidation”
Liquidation refers to the point in time when the final duty amount for an entry is assessed. As a rule, liquidation occurs automatically in the Automated Commercial Environment (“ACE”), the U.S. customs clearance system, 314 days after importation, and in some cases even earlier. This depends on whether the U.S. Customs and Border Protection (“CBP”) considers the import to have been fully reviewed and all information necessary for determining the customs duties is available.
The date of liquidation is decisive for calculating the deadline for filing an administrative protest. The 180-day period begins on this date. For entries following the entry into force of the tariffs against Switzerland on April 2, 2025, assuming full utilization of the 314-day clearance period, the deadline for filing a protest began on February 10, 2026. Accordingly, such requests may be filed until early August 2026. It should be noted that the IEEPA tariffs against China have been in effect since February 4, 2025, and against Mexico and Canada since March 4, 2025. The deadlines for filing protests may therefore begin earlier accordingly.
Steps for Affected Companies
Companies that have paid IEEPA duties should, in particular, consider the following steps:
- Identify affected entries and check their clearance status
- Review ACE data starting February 4, 2025 (China), March 4, 2025 (Canada and Mexico), and April 2, 2025 (Switzerland and other countries);
- Determine whether IEEPA duties were incurred, particularly under HTS codes 9903.01 and 9903.02;
- Check whether entries have already been liquidated and whether the 180-day period for filing an administrative protest is still ongoing.
- For entries that have not yet been cleared, ensure that they are cleared without IEEPA duties.
- File a protest
If entries have already been cleared, an administrative protest must be filed within 180 days of clearance to secure the refund claims. The protest must state that the IEEPA duties are unlawful pursuant to the decision of the U.S. Supreme Court.
- Technical requirements for refunds
Refunds are processed electronically via the Automated Clearing House (ACH). This is the electronic payment system used for U.S. customs purposes. Importers or customs clearance service providers must ensure that:
- registrations in ACE and ACH are in place;
- a U.S. bank account is available or, alternatively,
- the customs clearance service provider has been designated as the payee.
Swiss companies acting as importers should verify whether they have access to the ACE portal and can receive refunds via ACH. If they do not have their own access, it is advisable to coordinate with the customs broker. This ensures that affected entries are identified, liquidation data is monitored, and administrative protests are filed in a timely manner.
- Consider Legal Action
No lawsuit is currently required, but it remains a possibility. Should legal action become necessary, a two-year statute of limitations is expected to apply for a lawsuit before the CIT, starting from the date of import (or, more conservatively, from the date of the relevant Executive Orders). As things stand today, this period would thus run until approximately early 2027.
Current Status of Refunds
CBP has noted that implementing the refunds is technically complex and requires adjustments to the ACE customs system. Work is currently underway on a new procedure. This is intended to automatically calculate and subsequently disburse refunds. It is not yet known when this procedure will be available or what requirements will apply.
Conclusion
Companies that have paid IEEPA duties since February 4, 2025, should promptly check the status of their entries. Particular attention should be paid to the liquidation status of these entries and the timely filing of administrative protests. This is the only way to secure potential refund claims. Swiss customers who have borne all or part of the additional duties are advised to initiate the corresponding refunds through their U.S. customers.