CIT Orders Refunds; Appeal Likely

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Mar. 4, 2026
By: Marvin E. McPherson

The U.S. Court of International Trade (CIT) in Atmus Filtration, Inc. v. United States, ordered the U.S. Customs and Border Protection (CBP) to liquidate entries without duties issued under the International Emergency Economic Powers Act. implementing the Supreme Court’s recent decision.

Judge Eaton granted relief tied to the customs liquidation process. The order requires that:

• Unliquidated entries subject to the IEEPA duties must be liquidated without regard to those duties, and
• Entries that have already been liquidated but are not yet final (i.e. within the 90 day window of 19 USC 1501) must be reliquidated without the duties.

Because liquidation determines the final duty owed on an entry, the directive effectively clears the path for refunds of the unlawful duties.

The court emphasized that the plaintiff’s entries are “among the millions of entries” affected by the tariffs, highlighting the potentially sweeping financial impact of the decision.

A central issue addressed by the order is whether the relief conflicts with the Supreme Court’s recent decision on limiting nationwide injunctions. In Trump v. CASA, Inc. the Court held that federal courts generally lack authority to issue universal injunctions binding the government beyond the parties before the court.

Judge Eaton concluded that the CASA decision does not constrain the CIT in this context. The order stresses that CIT operates under a distinct statutory framework from the federal district courts discussed in CASA. The court was created by Congress under the Customs Courts Act of 1980, which granted it nationwide geographic jurisdiction and exclusive subject-matter jurisdiction over many trade disputes. Judge Eaton also pointed to the constitutional requirement that duties be uniform nationwide, citing Article I’s Uniformity Clause.

While this case shows the direction CIT intends to implement for a refund process, appeal is likely for this decision. Any appeal from CIT would be heard by the U.S. Court of Appeals for the Federal Circuit.

Importers need to discuss with counsel he steps needed to take to ensure that your interests to refunds are protected if the order is appealed. To do so, contact any attorney  at Barnes, Richardson & Colburn, LLP.