It feels like we’re living in a never‑ending cycle of “Breaking News” alerts when it comes to IEEPA tariffs—and now Section 122 headlines have joined the party. The first major shake‑up landed on February 20, 2026, when SCOTUS ruled the IEEPA tariffs unlawful. Since the Court left the question of importer refunds unanswered, everyone has been holding their breath, waiting for the next shoe to drop.
Section 122 Tariffs: The Plot Thickens
Next up in the saga were the Section 122 tariffs. The administration’s attempt to keep tariff revenue flowing (though their legality is currently a topic of lively debate). These went into effect at midnight on February 24, 2026, precisely when CBP stopped collecting IEEPA tariffs. They are currently set at 10% for all countries unless an exemption applies—mirroring the former IEEPA structure.
Rumor mills across social media and various news outlets have been speculating that the rate could jump to 15%, so expect that to be the next “Breaking News” push alert. For now, though, the tariffs remain at 10%. Section 122 authority only lasts 150 days, meaning these tariffs will sunset on July 24, 2026, unless Congress steps in to extend them.
As if that weren’t enough, yet another headline emerged: New York Attorney General Letitia James, along with prosecutors from 23 states, filed suit to block the Section 122 tariffs, arguing the administration is misusing the statute and violating constitutional and statutory rules requiring uniform tariff application. In short: stay tuned.
And Now, the Next Breaking News…
On March 4, 2026, the Court of International Trade issued an order directing CBP to liquidate all unliquidated entries subject to IEEPA tariffs and reliquidate entries not yet final “without regard to the IEEPA duties.” In plain English: automatic refunds would be owed. The judge further emphasized that all importers with IEEPA‑affected entries are entitled to the benefits outlined in the Learning Resources decision.
Still, one enormous question lingered: How on earth would CBP actually pull this off? The judge has scheduled a closed‑door meeting with CBP to demand answers and a plan, leading us smoothly into the next update…
CBP’s Proposal for IEEPA Refunds
CBP has now signaled that they cannot immediately comply with the court’s order. They need to build new ACE functionality—and estimate they’ll need at least 45 days to do it.
CBP outlined the following steps for processing IEEPA refunds:
- Importers will file a declaration in ACE listing all entries where IEEPA duties were paid.
- ACE will run validations and automatically recalculate duty owed (minus IEEPA), plus applicable interest.
- CBP will verify the declaration and process refunds as quickly as possible.
- ACE will automatically finalize each entry through liquidation or reliquidation.
- ACE will aggregate refunds (with interest) by importer and liquidation date.
- CBP will certify the refunds.
- Treasury will issue the refunds electronically.
What Should YOU Do Now?
While we wait for CBP’s new ACE functionality, one thing is crystal clear: this is the moment to start gathering your IEEPA‑related entry documents. If you don’t have an ACE account yet, now is the time to get one. In fact, several weeks ago would’ve been better!
ACE gives you access to reports that will be essential for refund preparation, and you must have an ACE account to receive electronic refunds. Only 6% of importers have enrolled in electronic refunds so far. If you’re part of the remaining 94%, and you want your IEEPA money back, you’ll need to get set up quickly. CBP stopped issuing paper checks on February 6, 2026.
Once the new ACE tools are live, importers who already have their documentation, ACE access, and ACH refund setup ready will be at the front of the line when refunds begin to flow.
Need Help?
If you need guidance navigating ACE or want a second set of eyes on your entries to ensure you’ve captured every IEEPA‑eligible refund, we’ve got you covered. Your Export Solutions team is here to help. Our experts have already supported numerous importers through IEEPA tariff analysis. We can help you, too.
Schedule a no-charge consultation with one of our trade compliance professionals today.
Shawna Karajic is a Senior Consultant for Export Solutions -- a full-service consulting firm specializing in U.S. import and export regulations.