Tariff refunds get clearer path as court rules importers won’t lose rights, Supreme Court decision looms early January

Courts clear the path for tariff refunds in historic ruling that protects importer rights. A recent Court of International Trade decision on December 15 affirmed that liquidation won’t prevent importers from recovering duties if the Supreme Court strikes down tariffs. The landmark ruling sets up a clearer process for potential refunds when a Supreme Court decision comes in early January.

Historic Court Decision Shields Importers From Liquidation Deadlines

The Court of International Trade provided critical clarity on December 15 when it ruled that liquidation of shipments would not prevent the court from ordering refunds if tariffs are found unlawful. This was a major relief for companies that feared missing administrative deadlines.

Companies had requested preliminary injunctions to pause liquidation processes. The government responded by conceding that the CIT has authority to order reliquidation if needed. The court agreed, holding that the government would be judicially estopped from reversing that position later.

This decision was based on the AGS Company Automotive Solutions case and applies to pending court litigation over IEEPA tariffs imposed under executives orders.

Importers Don’t Need Immediate Legal Action to Protect Rights

Trade law experts have advised companies that they don’t need to file lawsuits immediately at the CIT to preserve refund rights. The December 15 ruling confirms this advice by establishing that liquidation alone won’t eliminate the court’s ability to correct duties.

Sandler, Travis & Rosenberg noted that there’s no need to file suit now before liquidations occur to preserve potential refund rights. However, importers are still advised to file administrative protests with Customs and Border Protection to ensure availability of refunds.

The court also clarified that importers can challenge IEEPA tariffs directly under the CIT’s residual jurisdiction without filing administrative protests first, since CBP cannot rule on the constitutionality of tariffs.

Two-Year Window Opens for Claiming Refunds After Supreme Court Rules

Key Timeline Element	Details
IEEPA Tariffs on China/Mexico/Canada	Published February 7, 2025
Reciprocal Tariffs on Other Countries	Published April 7, 2025
Statute of Limitations	Two years from publication date
Tariffs Collection to Date	Approximately $200 billion collected

The statute of limitations for seeking tariff refunds runs for two years from the date tariffs were published. For duties imposed on imports from China, Mexico, and Canada, the refund window extends to February 7, 2027.

For reciprocal tariffs on other countries published April 7, companies have until April 7, 2027 to pursue claims. Importers can either wait for an administrative refund process through CBP or pursue litigation at the CIT if the Supreme Court voids the tariffs.

The Justice Department has already indicated it won’t oppose recalculating tariff amounts or providing refunds if the Supreme Court rules against the administration.

Supreme Court Set to Rule on Tariff Legality in Early January

The Supreme Court adjourned for the holiday season after hearing oral arguments on November 5, 2025 in the V.O.S. Selections Inc. v. United States case. A decision is expected no sooner than early January 2026 when the court returns from recess.

The case challenges whether President Trump’s use of the International Emergency Economic Powers Act to impose tariffs was constitutional. If the Supreme Court finds the tariffs unlawful, it could invalidate billions in duties collected this year.

Norton Rose Fulbright noted that even if the Supreme Court invalidates the tariffs, it’s extremely unlikely the decision will immediately result in automatic refunds to thousands of importers without further administrative or legal steps.

What Should Importers Do Before the Supreme Court Ruling Arrives?

Companies currently have flexibility on timing decisions because the CIT ruling removes the pressure to file immediate lawsuits. The key recommendation is to file administrative protests with CBP if they haven’t already, even though it’s uncertain whether protests alone will secure refunds.

Importers should also document their tariff payments and shipment records in case they need to submit formal refund claims. Some companies may want to consult with trade attorneys about whether filing a preemptive lawsuit at the CIT makes sense for their specific circumstances.

Once the Supreme Court decision arrives in January, companies will need to act within their respective two-year claim windows to pursue refunds through whatever process the courts and government establish.

“Liquidation will not prevent it from ordering reliquidation and refunds if necessary and denied the motion for injunction.”

— U.S. Court of International Trade, December 15, 2025 Decision

Sources

• Sandler, Travis & Rosenberg – Court of International Trade analysis on IEEPA tariff refund rights
• Mayer Brown – Court of International Trade decision and importer timeline guidance
• GDLSK Legal – AGS Company v. United States Court of International Trade ruling summary