Latest Developments:

CIT Ruling and Appeal: On May 28, 2025, the U.S. Court of International Trade (CIT) issued a landmark decision, ruling that the IEEPA tariffs (including the Fentanyl and Reciprocal tariffs) were unlawful and exceeded the President's authority. The CIT ordered these tariffs to be revoked.

CAFC Grants Temporary Stay: The U.S. Government promptly filed an appeal with the Court of Appeals for the Federal Circuit (CAFC) and requested a stay of the CIT's order. As of May 29, 2025, the CAFC has granted this temporary stay. This means that the CIT's order to revoke the tariffs is currently paused.

District Court Ruling: In a separate, parallel case, a District Court for the District of Columbia also ruled on May 29, 2025, that IEEPA does not authorise the President to impose tariffs and granted a preliminary injunction for the two plaintiffs in that specific case. This ruling is also subject to an appeal by the government.

Jurisdictional Battle Continues: As of today, we have two courts (the CIT and the District Court) that have issued rulings on the IEEPA tariffs, each with their own implications, and the appellate courts are now involved in resolving these complex jurisdictional questions. The ultimate determination of which court holds jurisdiction and whose orders will prevail is still to be seen.

What This Means for Importers and Customs Brokers – Tariffs Remain in Place for Now:

Continued Tariff Collection: Due to the temporary stay granted by the CAFC, tariffs under the IEEPA will continue to be collected for the time being. Importers should continue to pay these tariffs as usual. The CAFC is expected to act quickly to consider the government's request for a longer-term stay.

Potential Refunds: While the CIT's ruling offers the potential for refunds of duties paid on these IEEPA tariffs (retroactive to their initial application dates, either February 4 or April 5), no refunds will be processed until all court issues are resolved and final decisions are made.

Action Required: Track and Document Entries: We advise clients, where possible, to maintain a record of any entries on which IEEPA tariffs were paid. This includes noting the expected liquidation date and the 180-day window for filing a protest from that date. Having this data available will allow us to identify and act on potential opportunities for Post Summary Corrections (PSCs) for non-liquidated entries or protests for liquidated entries, should they become necessary to pursue potential refunds.

Contact Our Brokerage for Assistance:

We understand this is a confusing and uncertain time, and the situation is truly changing day by day. Our dedicated brokerage team is here to support you through these developments.

For any questions regarding your specific entries or the implications of these ongoing legal developments, please don't hesitate to contact your usual Woodland Group representative or our customs brokerage team directly.

Regarding protest filings or other formal actions, you can rest assured that we will proactively provide you with further guidance on when and how to initiate these steps as the legal landscape becomes clearer and if it becomes necessary to protect your refund eligibility. We're monitoring these developments very closely to ensure you receive timely and relevant updates.


Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. It should not be used as a substitute for reviewing applicable U.S. laws or regulations, or for consulting with qualified legal counsel. This content reflects our interpretation and understanding of the subject matter at the time of publication and may not reflect the most current legal developments.