The U.S. Court of International Trade, based in New York, is said to have certified on Thursday a class of plaintiffs allowing them to pursue their action jointly, according to Sourcing Journal. The ruling concerns the IEEPA tariffs, which the Supreme Court ruled illegal in February.
A precisely defined class
The class would reportedly include importers who paid under this scheme from February 1, 2025, through February 19, 2026: the day before the tariffs were invalidated. It would, however, exclude parties who had already filed their own separate proceedings. CIT Judge Richard K. Eaton, author of the order, is said to have written that the court is certifying a class « dans l'espoir, et l'attente, que cette certification conduira à la liquidation ou à la reliquidation de toutes les entrées sur lesquelles les droits IEEPA illégaux ont été imposés, et au remboursement de ces droits aux importateurs qui les ont payés ».
Considerable sums already at stake
More than 4,000 lawsuits are said to have already been filed in connection with these refund claims, according to the CIT. U.S. Customs and Border Protection (CBP) is said to have already processed about $130 billion of the roughly $166 billion owed to importers, through its CAPE (Consolidated Administration and Processing of Entries) system, rolled out in the spring. Judge Eaton is said to have warned that if the CAPE system were to stop functioning, the U.S. Treasury would retain about $30 billion in illegally collected duties, writing: « Si aucune autre mesure n'est prise, nous nous retrouvons avec la perspective que le département du Trésor américain... conserve des milliards de dollars de droits perçus illégalement, et que des dizaines de milliers d'importateurs se voient refuser la liquidation ou la reliquidation de leurs entrées. »
The limits of the CAPE system
Since reliance on CAPE depends on importers taking voluntary action, the judge is said to have noted that this mechanism would eventually run out of steam, with some importers: « en majorité de petits importateurs qui, en raison du coût ou de l'effort nécessaires pour déposer une déclaration CAPE, ou parce qu'ils ignorent l'existence du programme, n'y recourront jamais » remaining beyond the reach of the scheme. Nor would the system reportedly handle certain categories of entries, such as those finally liquidated for importers who had not brought their own action.
Progress that is not yet secured
The certification would not immediately broaden importers' eligibility nor guarantee direct payment, according to Sourcing Journal. James Kim, international trade partner at ArentFox Schiff, is nonetheless said to have stated that the ruling « crée une voie potentielle pour les non-plaignants, vers une ordonnance unique exigeant que des remboursements soient versés aux importateurs qui n'ont pas engagé de poursuites individuelles ».
Lawyers for the importers and the government are due to take part in a closed-door conference on Tuesday, before having to agree, by October 22, on a schedule including a deadline for the government's response to the complaint.
