TITLE: IEEPA Tariff Refund Class Action Certified: What Importers Need to Know
The CIT has certified an injunctive class
On 8 October 2026, Judge Richard K. Eaton certified the class action in Freestyle World, Inc. v. United States, Court No. 26-01088, Slip Op. 26-155.
The certified class covers:
All importers of record who paid duties imposed by the Challenged Tariff Orders between February 1, 2025, and February 19, 2026, excluding any entity that has separately filed an action seeking to recover IEEPA duties payments.
The court appointed Freestyle World as class representative. Barnes, Richardson & Colburn LLP and Lieff Cabraser Heimann & Bernstein LLP were appointed as class counsel.
You can read the official Court of International Trade opinion.
The case follows the Supreme Court’s decision in Learning Resources, Inc. v. Trump, 607 U.S. 229 (2026). On 20 February 2026, the Supreme Court held that IEEPA does not authorise the President to impose tariffs.
The class action seeks an injunction requiring US Customs and Border Protection (CBP) to liquidate or reliquidate affected entries without the unlawful IEEPA duties. The resulting refund calculation should then be performed automatically through Customs systems.
Understand the key point: there is no opt-in or opt-out
This is not an ordinary damages class action.
The CIT certified the class under USCIT Rule 23(b)(2) as an injunctive class. That means:
- You do not need to opt in.
- You cannot opt out.
- You may be included automatically if you meet the class definition.
- You are bound by the eventual outcome.
- You are excluded if your business has already filed a separate action seeking recovery of IEEPA duty payments.
The court did not award immediate refunds in the 8 October order. It certified the class and set the case on a path toward an injunction. The government must still respond, and further court orders will determine how the process operates.
The court’s proposed remedy is important because it addresses importers who did not use CAPE. It also addresses categories of entries that CBP’s current CAPE process may not accept, including certain finally liquidated entries belonging to non-plaintiff importers.
The court described the resulting refund calculation as “mechanical” and “formulaic” work for a computer program. Once the entries are properly liquidated or reliquidated without IEEPA duties, refunds and applicable interest should follow through the Customs process.
See why this matters for small and international sellers
The scale of the refund programme is substantial.
According to the CIT opinion:
- CAPE has processed approximately 27.4 million entries since its launch on 20 April 2026.
- More than 21.19 million entries have been liquidated or reliquidated.
- Approximately $126 billion in duties and interest had been refunded by 2 October 2026.
- Approximately $136.6 billion in potential and certified refunds had been accepted into CAPE as of 2 October.
- CAPE Phase 3, deployed on 6 October, had accepted declarations covering around 1.1 million entries and $500 million in claimed refunds by 7 October.
- More than 4,000 individual lawsuits involving approximately 7,000 plaintiffs had been filed.
- If CAPE stopped operating, approximately $30 billion in unlawful duties could remain in the US Treasury.
Many smaller importers never filed a CAPE declaration because they were unaware of the programme or could not justify the cost and effort of preparing the data. The newly certified class is intended to address that practical gap.
Check your importer of record number and entry history
Start with your customs records. Do not rely only on marketplace reports or supplier invoices.
Check whether your importer of record number appears on entries that:
- Were entered between 1 February 2025 and 19 February 2026.
- Contain IEEPA Chapter 99 HTS provisions.
- Show IEEPA duties paid or deposited.
- Were imported through your US LLC, C-corporation or another entity.
- Were filed by your customs broker using your IOR details.
Review ACE reports, customs entry summaries, broker statements and customs bond documentation. Your broker may also be able to identify entry numbers and liquidation dates.
The refund belongs to the importer of record or an eligible party designated through the relevant CBP process. It does not automatically belong to the overseas brand, marketplace or end customer that ultimately paid higher prices.
If you operate through a US entity as an importer of record, keep the legal separation clear. A UK, EU, Canadian or Australian owner may own the US entity, but the US importer of record remains central to the Customs refund process.
Keep CBP Form 5106 information accurate
Review the name, address, EIN and importer of record information connected with your CBP Form 5106.
Incorrect or outdated data can create account mismatches, delay validation, invalidate usable importer information and block access to CAPE processing or refunds. It can also cause errors when the entry number and IOR number do not match in ACE.
CBP states that Form 5106 information may be updated through:
- A licensed customs broker with a valid power of attorney.
- The ACE Secure Data Portal.
Use the official CBP IEEPA duty refund guidance for current instructions.
Enrol a US bank account before the refund is issued
CBP refunds are paid electronically through ACH. If your US bank account is not correctly enrolled in ACE, CBP may hold the refund.
Confirm that:
- Your ACE Portal account is active.
- The correct importer sub-account is available.
- Your refund bank account details are current.
- The account belongs to the correct recipient.
- Any Form 4811 notify-party information is accurate.
- Your bank has not rejected previous ACH payments.
CBP says most valid refunds are generally issued within 60 to 90 days after an accepted CAPE declaration, although compliance reviews and entry status can extend the process.
Monitor the ES-022 CAPE Entry Summary report, REV-603 Trade Refund report and REV-613 ACH Rejected Refunds report where available.
Track liquidation, protests and the February 2027 risk window
Do not assume that an eligible entry will remain recoverable indefinitely.
CBP’s current CAPE guidance accepts certain entries within 80 days of liquidation. Entries liquidated or reliquidated beyond that period may be rejected from the standard declaration process. The CIT opinion also discusses the legal distinction between liquidation, reliquidation and finally liquidated entries.
Maintain a calendar recording:
- Entry dates.
- Liquidation dates.
- Reliquidation dates where applicable.
- Any protest deadlines.
- Correspondence with your customs broker and CBP.
Where entries fall outside CAPE’s acceptance window, a protest or separate legal step may still be required to preserve your position.
Act now and preserve your position
The CIT has certified a nationwide injunctive class covering importers of record who paid IEEPA duties between 1 February 2025 and 19 February 2026 and who have not filed their own recovery action.
If your business falls within that definition, you are likely included automatically.
Review your IOR records, ACE data, Form 5106 details and bank enrolment now. For importers without a US entity, the refund structure may require additional planning.
This is general information, not legal advice. Every importer’s circumstances differ, and the litigation is ongoing. Consider taking professional advice on your specific position.
