US Court of International Trade Certifies Nationwide Importer Class Seeking Recovery of Unlawfully Collected IEEPA Tariffs
In a significant development for US importers, the US Court of International Trade ("CIT") has certified a nationwide class action that could expand refund opportunities for companies that paid tariffs imposed under the International Emergency Economic Powers Act ("IEEPA") but did not file their own individual lawsuit. In Freestyle World, Inc. v. United States, Slip Op. 26-123 (Oct. 8, 2026), the CIT certified a class consisting of importers that paid IEEPA duties between February 1, 2025, and February 19, 2026, excluding importers that previously filed separate actions seeking recovery of those duties.
The decision follows the US Supreme Court's ruling in Learning Resources, Inc. v. Trump, which held that IEEPA does not authorize the President to impose tariffs. The CIT emphasized that the Supreme Court's conclusion applies broadly to all importers that paid the unlawful duties and not solely to the plaintiffs that originally challenged the tariffs.
For importers that have not yet pursued recovery, the certification order may provide an additional avenue to obtain refunds of unlawfully assessed tariffs and associated statutory interest.
What Did the Court Decide?
The certified class includes:
All importers of record who paid duties imposed by the challenged IEEPA tariff orders between February 1, 2025, and February 19, 2026, excluding entities that separately filed actions seeking recovery of IEEPA duties.
The class seeks injunctive relief requiring US Customs and Border Protection ("CBP") to liquidate or reliquidate affected entries without the unlawful IEEPA duties. The court concluded that such relief, if granted, would result in refunds of unlawfully collected tariffs together with applicable statutory interest.
The CIT found that class treatment was appropriate because all class members were affected by the same tariff program and share common legal questions arising from the Supreme Court's determination that the tariffs exceeded presidential authority under IEEPA.
Why This Matters for Importers
The court recognized that many importers have already obtained relief through individual litigation and CBP's Consolidated Administration and Processing of Entries ("CAPE") refund program. However, the court also noted that substantial amounts of unrecovered IEEPA duties may remain outstanding.
According to figures cited in the opinion:
- Approximately $166 billion in IEEPA duties were collected before the tariffs were invalidated.
- The duties affected approximately 53 million entries involving roughly 330,000 importers of record.
- As of October 2026, CBP had accepted approximately $136.6 billion in potential and certified refunds for processing and had refunded approximately $126 billion in duties and interest.
- The court estimated that approximately $30 billion in unlawfully collected duties could remain unrecovered if additional action is not taken.
The court specifically observed that many remaining affected importers may be smaller companies that either were unaware of available recovery mechanisms or determined that pursuing individual litigation was not economically practical.
Key Considerations for Importers
Class certification could, and most likely will be appealed, and it will still take some time for the merits to be decided. Importers that paid IEEPA tariffs but have not filed individual lawsuits should consider the following:
1. Determine Whether You Are a Class Member
Companies should evaluate whether they:
- Were the importer of record;
- Paid IEEPA duties between February 1, 2025, and February 19, 2026; and
- Have not previously filed a separate lawsuit seeking recovery of those duties.
2. Assess Potential Refund Exposure
Importers should identify:
- Total IEEPA duties paid;
- Refunds already received;
- Entries that remain liquidated or unreliquidated; and
- Potential statutory interest associated with any recoverable duties.
3. Review CAPE Participation
The court highlighted CBP's CAPE program as the principal mechanism for processing IEEPA refunds. Importers should review whether all eligible entries have been submitted and processed through CAPE and whether additional opportunities for relief remain. At this point, CAPE Phase 3 appears to remain available for companies that wish to file individual lawsuits in the hopes of a speedier recovery. Butzel can assist, and more information on this is available in our prior Client Alert.
4. Monitor Ongoing Proceedings
Although the class has now been certified, litigation concerning the scope of liquidation and reliquidation relief continues. Further judicial and administrative developments may affect the timing and process for obtaining refunds.
5. Preserve Relevant Records
Importers should maintain:
- CBP Form 7501 entry summaries;
- Importer-of-record information;
- Proof of tariff payments;
- CAPE declarations and related submissions; and
- Internal analyses of tariff exposure and refund amounts.
These records may be important in supporting any refund recovery efforts.
Topics Butzel Can Assist With
Butzel's International Trade and Customs attorneys are assisting clients in evaluating and pursuing potential tariff recovery opportunities. Our team can provide support in the following areas:
Class Eligibility Assessments
Evaluating whether a company falls within the certified class and how prior litigation, CAPE participation, and entry status may affect potential recovery rights.
IEEPA Tariff Recovery Audits
Reviewing import data, entry summaries, and duty payment records to identify potentially recoverable IEEPA duties and statutory interest.
CAPE Program Strategy
Assisting companies in understanding the CAPE process, evaluating previously submitted claims, and identifying eligible entries that may not yet have been addressed.
Liquidation and Reliquidation Analysis
Advising on issues involving unliquidated, liquidated, and finally liquidated entries and evaluating how ongoing court proceedings may impact refund availability.
Documentation and Record Preservation
Helping companies collect, organize, and preserve the documentation necessary to support refund claims and maximize potential recovery.
Monitoring Litigation and Regulatory Developments
Providing updates and strategic guidance regarding developments in the certified class action, related appeals, and CBP implementation of refund programs.
Strategic Recovery Planning
Assessing available recovery options and developing practical approaches to maximize tariff refunds and interest while minimizing administrative burden and cost.
Conclusion
The certification of the importer class in Freestyle World, Inc. v. United States represents another significant development in the ongoing effort to recover unlawfully collected IEEPA tariffs. For importers that did not join one of the thousands of previously filed lawsuits, the decision may create an important pathway to obtain refunds and statutory interest. Companies that paid IEEPA duties should evaluate their potential exposure, review their participation in existing refund programs, and consider whether additional recovery opportunities may be available.
This publication is provided for informational purposes only and does not constitute legal advice. Readers should consult legal counsel regarding their specific circumstances.
Butzel’s International Trade and Customs Specialty Team will continue to monitor these developments. Please contact the authors of this Client Alert or your Butzel attorney for assistance.
Mitchell Zajac
313.225.7059
zajac@butzel.com
Jennifer M. Smith-Veluz
202.454.2885
smithveluz@butzel.com
Catherine M. Karol
313.225.5308
karol@butzel.com
