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Updated October 2026: The U.S. Supreme Court ruled on February 20, 2026 in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs, so IEEPA tariffs, including the “reciprocal” tariffs, are no longer collected and importers can claim refunds.
What changed in short: CBP stopped collecting IEEPA duties on goods entered on or after February 24, 2026. A temporary 10% Section 122 surcharge replaced them from February 24 until it expired on July 24, 2026. CBP now refunds IEEPA duties through its CAPE process in ACE. Section 232, Section 301 and antidumping and countervailing duties were never part of this ruling and still apply. This is general information, not legal advice. Confirm your situation with your customs broker or trade counsel.
What the Supreme Court decided
In Learning Resources, Inc. v. Trump (No. 24-1287, consolidated with Trump v. V.O.S. Selections), argued November 5, 2025 and decided February 20, 2026, the Court held that IEEPA does not authorize the President to impose tariffs. Chief Justice Roberts wrote for the Court; Justices Thomas, Alito and Kavanaugh dissented. The Court reasoned that IEEPA’s power to “regulate importation” never mentions tariffs or duties, and that a power to tax imports of this breadth requires clear congressional authorization.
The decision covers both IEEPA tariff programs described in this post’s earlier version: the “reciprocal” tariffs under Executive Order 14257 (April 2025) and the 2025 “drug trafficking” tariffs on Canada, Mexico and China under Executive Orders 14193, 14194 and 14195. Both rested on the same statute, and both fell with it.
What CBP did after the ruling
CBP issued CSMS #67834313, “Ending Collection of International Emergency Economic Powers Act Duties,” on February 22, 2026. It directs that IEEPA duties stop being collected for goods entered, or withdrawn from warehouse for consumption, on or after 12:00 a.m. ET on February 24, 2026. The related Chapter 99 numbers, including the 9903.01 series reciprocal lines, became inactive in ACE on that date. CBP stated that the change does not affect Section 232 or Section 301 duties.
For importers, the Chapter 99 mechanics still matter in two ways. Entries filed before February 24, 2026 carry IEEPA Chapter 99 lines that are now the basis of refund claims, and entries after that date should no longer declare them. Keep the entry summaries and proof of payment for every IEEPA-bearing entry.
IEEPA refunds: who qualifies and how
The court order
On March 4, 2026, the Court of International Trade (Judge Eaton) ordered CBP in Atmus Filtration v. United States to liquidate unliquidated entries without IEEPA duties and to reliquidate entries that were not yet finally liquidated. The order was later broadened to reach entries with a final liquidation, which is the subject of continuing litigation.
CBP’s CAPE process
CBP built the Consolidated Administration and Processing of Entries (CAPE) tool in the ACE Portal. Phase 1 opened April 20, 2026. Key rules published by CBP:
- Only the importer of record, or the licensed customs broker who filed the entries, can file. The filer needs an ACE Portal account with refund bank (ACH) information on file.
- Filing is by CSV upload of a “CAPE Declaration” of up to 9,999 entry numbers each. You can submit multiple declarations.
- Unliquidated entries, and entries liquidated within the previous 80 days, are accepted. Entries liquidated more than 80 days ago are rejected as finally liquidated under Phases 1 and 2.
- Entries on drawback, under an open or suspended protest, or subject to a court injunction are ineligible. AD/CVD entries pending liquidation, warehouse entries and some others were deferred to later phases.
- Once a CAPE declaration is filed for an entry, you cannot file a post summary correction or a protest on it. Fix non-IEEPA errors first, or protest after the refund.
- CBP says valid refunds are generally issued 60 to 90 days after a declaration is accepted, by ACH. CBP charges no fee, and refunds can be offset against other debts owed to the government.
Liquidated and finally liquidated entries
Phase 3 covers finally liquidated entries, but only for plaintiffs in a pending CIT case and only within a court reliquidation order. CBP scheduled Phase 3 to open October 6, 2026 for plaintiffs who had submitted a valid importer of record number by July 30, 2026. The sources we could review were dated through early October, so confirm Phase 3 status on CBP’s IEEPA refund page and CSMS messages. CBP’s position is that without a court order it cannot refund finally liquidated entries.
Deadlines
CBP has not published a single CAPE filing deadline in the sources we reviewed. The practical clocks are the 80-day liquidation window for Phases 1 and 2 and the statute of limitations for CIT actions (28 U.S.C. 2636(i), two years). On October 8, 2026 the CIT certified a class in Freestyle World, Inc. v. CBP covering importers who paid IEEPA duties from February 1, 2025 through February 19, 2026 and have not filed their own suits. Certification is not a refund order, and whether it pauses the two-year clock was not addressed in that certification. Ask your trade counsel about protecting your claim.
As of CBP’s September 11, 2026 figures, about $134.7 billion in potential and certified refunds had been accepted and roughly $122 billion sent to Treasury for disbursement. Missing ACH details were holding up thousands of refunds.
What replaced IEEPA: the Section 122 surcharge
On February 20, 2026, Proclamation 11012 imposed a temporary 10% ad valorem import surcharge under Section 122 of the Trade Act of 1974 (balance of payments authority), reported on Chapter 99 line 9903.03.01. It took effect 12:01 a.m. ET on February 24, 2026. Section 122 caps such a surcharge at 150 days unless Congress extends it, and it expired on July 24, 2026. As of our latest source (October 12, 2026), we found no extension, and CBP no longer collects it.
On May 7, 2026, the CIT (Slip Op. 26-47) ruled 2-1 that the Section 122 proclamation was unlawful, but limited relief to three plaintiffs. The Federal Circuit stayed that judgment on June 11, 2026 while the appeal (Nos. 2026-1804 and 2026-1805) proceeds. As of October 12, 2026, the appeal was pending and no Section 122 refunds were payable to anyone under the CIT order. If you paid Section 122 duties, talk to your broker or counsel about preserving your rights, and watch CBP CSMS messages for any change.
What still applies
The ruling removed only IEEPA tariffs. These duties remain in force:
- Section 232: steel, aluminum, autos and other product-specific national security tariffs. See our Section 232 steel and aluminum guide.
- Section 301: the existing China tariffs on Lists 1 to 4 are unaffected. See our Section 301 guide for Chinese imports. USTR also issued separate Section 301 forced labor tariffs effective July 24, 2026, now being challenged at the CIT; see our forced labor tariffs update.
- AD/CVD: antidumping and countervailing duties on specific products and countries. See our AD/CVD importer guide.
- Normal HTS duty: the regular rate for your tariff number. Our HTS classification guide explains how to find it.
What importers should do now
- List every entry since February 4, 2025 that carried an IEEPA Chapter 99 line, with entry date, liquidation status and duty paid.
- Confirm with your customs broker whether CAPE declarations have been filed for each eligible entry, and that your ACE Portal account has ACH details.
- Flag entries liquidated within the last 80 days and file before the window closes.
- For finally liquidated entries, ask trade counsel about a CIT action and the two-year limit.
- Check pending protests, drawback and AD/CVD entries, which are handled separately.
- Reprice goods and landed costs without IEEPA duty but with Section 232, 301 and AD/CVD where they apply. Our landed cost guide and the Global Duty and Tax Calculator give duty estimates.
- Decide whether to add customs brokerage to your shipments so entries and refund claims are handled consistently. See US customs entry information.
Timeline
| Date | Event |
|---|---|
| April 2, 2025 | Executive Order 14257 imposes IEEPA reciprocal tariffs; 10% baseline starts April 5 |
| November 5, 2025 | Supreme Court hears argument |
| February 20, 2026 | Supreme Court decides Learning Resources v. Trump; Proclamation 11012 imposes Section 122 surcharge |
| February 24, 2026 | CBP stops collecting IEEPA duties (CSMS #67834313); 10% Section 122 begins |
| March 4, 2026 | CIT orders reliquidation without IEEPA duties (Atmus Filtration) |
| April 20, 2026 | CAPE Phase 1 refund filing opens |
| May 7, 2026 | CIT rules Section 122 unlawful; Federal Circuit stays relief June 11 |
| July 24, 2026 | Section 122 surcharge expires after 150 days |
| October 6, 2026 | CAPE Phase 3 (finally liquidated entries for plaintiffs) scheduled to open |
FAQ
Are IEEPA and reciprocal tariffs the same?
Reciprocal tariffs were one part of the IEEPA tariffs. IEEPA tariffs also included the 2025 fentanyl and border tariffs on Canada, Mexico and China. The Supreme Court ruling ended both. Section 232, 301 and AD/CVD tariffs are separate programs under other laws.
Do IEEPA tariffs still apply to China?
No. IEEPA collection ended for all countries on February 24, 2026. China-origin goods still face Section 301 duties, any applicable Section 232 and AD/CVD duties, and the normal HTS rate.
Do I have to sue to get a refund?
Not for entries that qualify for CAPE Phases 1 and 2, which are filed in ACE by the importer of record or broker. Finally liquidated entries generally require a CIT case under Phase 3. Ask trade counsel.
Who gets the refund, the importer or the buyer?
CBP pays the importer of record. Whether you can recover the cost from a supplier or customer depends on your contract terms.
Is the Section 122 surcharge still charged?
No. It expired July 24, 2026 and, as of October 12, 2026, we found no extension. Check CBP CSMS messages for current tariff guidance.
Can new tariffs replace IEEPA?
The administration can use other statutes, such as Sections 232, 301 and 122, which have their own procedures and limits. Confirm the duty on your goods before booking freight.
