Introduction

On February 20, 2026, the Supreme Court issued one of the most consequential trade rulings in decades. In Learning Resources, Inc. v. Trump, a 6–3 majority held that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. Thus, it seems that $160+ billion in duties — collected throughout 2025 — were unlawfully levied. A refund process is now underway, but it is complex, contested, and time sensitive. Importers who wait risk losing their claims. 

The Supreme Court’s Decision 

Chief Justice Roberts, writing for the majority, held that IEEPA’s grant of authority to “regulate… importation” does not include the power to impose tariffs. The Court noted that the statute contains no reference to tariffs or duties, that the word “regulate” does not ordinarily mean “tax,” and that Congress has historically delegated tariff authority using explicit revenue language paired with rate caps and time limits — none of which appear in IEEPA. A three-justice plurality also applied the major questions doctrine, emphasizing that powers of vast economic significance require clear congressional authorization. Justices Thomas, Alito, and Kavanaugh dissented. Justice Kavanaugh warned that refunding potentially hundreds of billions of dollars to importers — many of whom passed costs on to customers — could prove administratively chaotic. 

The Refund Process: Developments Since 

The path to refunds has moved quickly since the ruling, though significant obstacles remain. On February 20th itself, President Trump issued an Executive Order stopping collection of IEEPA tariffs going forward but did not address refunds. 

On March 4th, The Court of International Trade (CIT) in Atmus Filtration, Inc. v. United States ordered CBP to liquidate all unliquidated entries without IEEPA duties and to reliquidate eligible liquidated entries within the 180-day protest window. 

On March 5, the CIT amended its order to clarify that “liquidated entries for which liquidation is not final shall be reliquidated without regard to those duties.” 

On March 6th, CBP advised the CIT that its Automated Commercial Environment (ACE) system cannot automatically process refunds at this scale, citing 53 million entries across 330,000 importers. CBP requested 45 days to build the necessary infrastructure. The CIT paused immediate implementation and accepted CBP’s proposed seven-step, ACE-based refund framework as the procedural path forward. 

Effective February 6, 2026, all CBP refunds must now be issued electronically via ACH transfer pursuant to the Treasury’s Modernizing Payments initiative. CBP has been unable to process refunds for approximately 2,897 importers due to missing ACH enrollment. Importers and customs brokers with ACE access should enroll now through the ACH Refund Authorization tab. 

The Administration’s Response: Section 122 Tariffs 

Within hours of the ruling, President Trump invoked Section 122 of the Trade Act of 1974 to impose a 10% “temporary import surcharge” on products from all countries, effective February 24, 2026. On February 21, he announced an increase to 15% — the statutory maximum under Section 122. On March 4, Treasury Secretary Bessent confirmed the 15% rate but did not specify the effective date. 

Section 122 authority is limited to 150 days (expiring approximately July 24, 2026) unless modified or extended by Congress. Certain goods are excluded, including USMCA-qualifying imports from Canada and Mexico, goods subject to Section 232 tariffs, critical minerals, pharmaceuticals, and certain electronics. Section 232 and Section 301 tariffs remain fully in effect and are unaffected by the IEEPA ruling. 

Importantly, only duties paid under the invalidated IEEPA authority are eligible for refunds. Duties paid under Section 122, 232, or 301 are not covered by the CIT’s refund order. 

What Importers Must Do Now 

The window for action is open — but it is not unlimited. The 180-day protest deadline runs from the date of liquidation for each entry. Missing that deadline forfeits refund rights through the standard administrative process. Here are the critical steps: 

• Enroll in ACH/EFT through CBP’s ACE system immediately. Refunds cannot be issued without it. 
• Inventory all IEEPA-related entries and identify liquidation status and dates. 
• Segregate IEEPA duty amounts from Section 232, 301, and base MFN rates. Mixed-duty entries require careful analysis. 
• Preserve all entry documentation: entry summaries, proof of duty payment, and internal cost allocations. 
• Consider filing a protective CIT suit if entries are near or past the 180-day protest window, or if CBP’s administrative process does not cover them. 
• Review transfer pricing and contractual pass-through arrangements to determine which entity is entitled to the refund. 

CBP has also indicated its proposed program may extend beyond the specific entries at issue in Atmus Filtration to cover all IEEPA refunds — which could, for some importers, reduce the urgency of filing individual CIT suits. However, given the scale and complexity of the process, early preparation and professional guidance remain essential. 

Financial and Accounting Considerations 

IEEPA refund claims represent contingent assets. CFOs should work with advisors on appropriate accounting treatment, disclosure as subsequent events, and the impact on inventory valuations. Refunds may carry interest paid by the government, creating additional tax implications. Companies should not expect refunds as guaranteed near-term cash. CBP acknowledges the timeline extends well beyond 45 days. 

How Occams Advisory Can Help 

Recovering IEEPA tariffs requires precise data, tight deadline management, and coordination across trade, legal, and finance functions. Occams Advisory provides: 

• Tariff exposure reconstruction and segregation analysis (IEEPA vs. other duty types) 
• Capital introductions for immediate monetization at an upfront discount 
• Liquidation timeline mapping and protest deadline tracking 
• Documentation organization for customs brokers and trade counsel 
• ACH enrollment support and ACE declaration preparation 
• Consortium strategies for smaller importers to pool resources and reduce costs 

We offer retainer and contingency-based engagement models to fit mid-market businesses. The refund process will unfold over months — and possibly years. The importers best positioned to recover their capital are the ones who start organizing now. 

Occams Advisory | Strategic Analysis | occamsadvisory.com 

This analysis is for informational purposes only and does not constitute legal or financial advice.