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by Desmond Sims

A. Overview

On February 20, 2026, the Supreme Court held in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act (“IEEPA”) does not authorize the President to impose tariffs.[1] As a result, certain tariffs imposed under IEEPA were deemed unlawful and may now be eligible for reimbursement.[2]

The ruling does not apply to all tariffs. It only applies to tariffs imposed under IEEPA. Other tariffs, such as Section 232, Section 301, and other tariff categories, were imposed under separate statutory authorities and are not part of the IEEPA refund process.

The refund process is available to U.S. importers of record, or in some cases consignees, who directly paid eligible IEEPA tariffs.[3] Businesses that did not directly pay the tariffs may not be eligible to seek reimbursement from the government, even if the tariffs increased the cost of goods they purchased.[4]

B. Refund Process

The U.S. government has established a refund process for certain IEEPA tariffs. U.S. Customs and Border Protection (“CBP”) created the Consolidated Administration and Processing of Entries (“CAPE”) functionality within the Automated Commercial Environment (“ACE”) Portal to streamline eligible refund requests. [5]

CAPE is intended to consolidate the refund process for IEEPA duties, rather than requiring every refund to be processed separately.[6] The CAPE process is being launched in phases. Phase 1 launched on April 20, 2026. Phase 2 launched on June 29, 2026, and addresses certain additional entries.

At this stage, importers and authorized customs brokers generally must use the ACE Portal to submit CAPE Declarations.[7] Once a CAPE Declaration is accepted, ACE removes the IEEPA tariff lines from the eligible entries and recalculates the duties without the IEEPA tariffs. CBP then reviews and processes the refund.[8]

C. IEEPA v. Section 232 and Section 301 Tariffs

IEEPA Tariffs

IEEPA is an emergency economic sanctions statute. It allows the President to regulate or prohibit certain transactions connected to foreign threats. The issue in Learning Resources was that the administration used IEEPA to impose tariffs. The Supreme Court concluded that IEEPA did not authorize the President to impose those tariffs, and that the authority to impose tariffs in this context had to come from Congress.[9]

Because the tariffs imposed by the president were under IEEPA and the Court determined they were unlawful, these tariffs may be eligible for reimbursement. Examples of IEEPA tariffs that may be eligible for refunds include tariffs commonly referred to as “fentanyl,” “trafficking,” “reciprocal,” or “baseline” tariffs, depending on the specific entry and tariff code.[10]

Section 232 Tariffs

Section 232 tariffs are national-security tariffs. They are imposed when imports are found to threaten or impair national security. These tariffs are associated with steel and aluminum, although Section 232 can also apply to other national security-based import categories.

Section 232 tariffs were not imposed under IEEPA. Because the Supreme Court’s ruling addressed the President’s authority under IEEPA, the ruling does not invalidate or create a reimbursement right for tariffs imposed under Section 232.[11]

Section 301 Tariffs

Section 301 tariffs are trade-remedy tariffs. They are imposed after the U.S. Trade Representative determines that a foreign country has engaged in unfair trade practices that burden or restrict U.S. commerce.[12]

The most common example is the China Section 301 tariffs, which were imposed after USTR found that China engaged in unfair practices involving technology transfer, intellectual property, and innovation.[13] Similar to Section 232 tariffs, Section 301 tariffs are not part of the IEEPA refund program.[14]

D. Refund Eligibility Process

Refund eligibility depends on the legal authority under which the tariff was imposed, not simply whether the tariff was paid during the same time period or on the same shipment.

A single shipment may include multiple tariffs. For example, an importer may have paid both IEEPA reciprocal tariffs and Section 301 China tariffs on the same shipment. In that situation, the IEEPA portion may be recoverable, but the Section 301 portion would not be recoverable through the IEEPA refund process.

For any client seeking tariff reimbursement, the first step is to review the relevant import records and identify whether the tariffs were assessed under IEEPA. If the duties were imposed under IEEPA, the client may be eligible to seek reimbursement through the CAPE process. If the duties were imposed under Section 232, Section 301, or another separate authority, they are not eligible for reimbursement under the IEEPA refund process.

E. Resources

For additional guidance, the U.S. Chamber of Commerce’s tariff refund FAQ provides an overview of IEEPA tariff refunds and expressly states that Section 232 and Section 301 tariffs are not eligible for reimbursement under the IEEPA refund process.

Attorneys can also review U.S. Customs and Border Protection guidance on IEEPA refunds and CBP’s separate guidance on Section 232 and Section 301 tariffs. Those resources can help determine which tariff authority applies to a client’s import entries.

[1] Learning Res., Inc. v. Trump, 607 U.S. 229, 255 (2026).

[2] Id.

[3]U.S. Customs & Border Protection, IEEPA Duty Refunds, https://www.cbp.gov/trade/programs-administration/trade-remedies/ieepa-duty-refunds (last visited July 7, 2026).

[4] Id.

[5] U.S. Customs & Border Protection, International Emergency Economic Powers Act (IEEPA) Frequently Asked Questions, https://www.cbp.gov/trade/programs-administration/trade-remedies/IEEPA-FAQ (last visited July 7, 2026). 

[6] U.S. Customs & Border Protection, IEEPA Duty Refunds, https://www.cbp.gov/trade/programs%20administration/trade-remedies/ieepa-duty-refunds (last visited July 7, 2026). 

[7] Id.

[8] Id.

[9] Learning Res., Inc. v. Trump, 607 U.S. at 248–49.

[10] U.S. Chamber of Commerce, Tariff Refunds FAQ: What Small Businesses Need to Know After the Supreme Court’s Ruling,https://www.uschamber.com/economy/tariff-refunds-faq-what-small-businesses-need-to-know-after-supreme-courts-ruling (last visited July 7, 2026).

[11] U.S. Customs & Border Protection, Section 232 Tariffs on Aluminum and Steel: FAQs, https://www.cbp.gov/trade/programs-administration/entry-summary/232-tariffs-aluminum-and-steel-faqs  (last visited July 7, 2026). 

[12] U.S. Customs & Border Protection, Section 301 Trade Remedies: FAQs, https://www.cbp.gov/trade/programs-administration/entry-summary/section-301-trade-remedies/faqs (last visited July 7, 2026). 

[13] Office of the U.S. Trade Representative, Section 301 Investigation: Fact Sheet, https://ustr.gov/about-us/policy-offices/press-office/fact-sheets/2018/june/section-301-investigation-fact-sheet (last visited July 7, 2026).

[14] U.S. Customs & Border Protection, Section 301 Trade Remedies: FAQs; Section 232 Tariffs on Aluminum and Steel: FAQs (both last visited July 7, 2026).

The opinions expressed are those of the authors and do not necessarily reflect the views of the firm or its clients. This article is for general information purposes and is not intended to be and should not be taken as legal advice.