On February 20, 2026, SCOTUS struck down IEEPA tariffs in a 6–3 ruling that stands as one of the most consequential trade decisions in a generation. In Learning Resources, Inc. v. Trump, Chief Justice Roberts held that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. Every tariff the Trump administration imposed under IEEPA since February 2025 is now legally void.
If you import goods into the United States, rely on an importer of record service, or manage cross-border shipments into or out of any market where IEEPA tariffs applied, this ruling changes your immediate priorities. The $166 billion refund question, the replacement tariff structure, and the compliance obligations that remain fully intact all require decisions now, not after your next shipment departs.
Everything That Has Happened, in Order
Before getting into what you need to do, here is the complete sequence of events that led to and followed from the decision. Every other article on this topic covers the SCOTUS struck down IEEPA tariffs story in isolation. The ruling only makes sense when you see the full chain.
| Date | Event | What It Means for Importers |
|---|---|---|
| Feb 4, 2025 | Trump invokes IEEPA to impose fentanyl tariffs on Canada, Mexico, and China | IOR duty obligations increase overnight on North American and Chinese-origin goods |
| Apr 2, 2025 | Liberation Day: IEEPA reciprocal tariffs imposed on most other countries | Landed costs spike globally; IOR providers scramble to recalculate entries |
| Aug 29, 2025 | CBP suspends broad Section 321 de minimis treatment | Sub-$800 parcels now require formal entry; a named importer of record becomes mandatory on millions of new shipments |
| Aug 2025 | Federal Circuit rules IEEPA does not authorize tariffs; ruling stayed pending SCOTUS review | IEEPA tariffs continue collecting while appeal proceeds |
| Nov 5, 2025 | SCOTUS hears oral arguments in Learning Resources, Inc. v. Trump | Importers file nearly 2,000 refund cases at CIT in anticipation of ruling |
| Feb 6, 2026 | CBP launches new ACH electronic refund system in ACE | Paper refund checks discontinued; all refunds now require ACE/ACH registration |
| Feb 20, 2026 | SCOTUS rules 6–3: IEEPA does not authorize tariffs | All IEEPA-based tariffs invalidated; refund question left unresolved |
| Feb 20, 2026 | Trump signs Section 122 proclamation: 10% global tariff on all countries | Within hours of ruling, replacement tariffs take effect from Feb 24 |
| Feb 24, 2026 | IEEPA tariff collection ends at 12:00 AM; Section 122 tariffs begin at 12:01 AM | No gap in tariff collection. The transition is immediate. |
| Mar 4, 2026 | CIT Judge Eaton orders CBP to refund all IEEPA duties to all importers of record | Universal refund order covers 330,000 importers and $166 billion in duties |
| Mar 6, 2026 | CBP declares it cannot comply immediately; CIT pauses order; CAPE system announced | Refund processing delayed approximately 45 days; CAPE target launch mid-April 2026 |
| Jul 1, 2026 | EU €3 customs duty on all parcels under €150 takes effect | Landed cost structure changes for every DDP low-value shipment into EU markets |
| Jul 24, 2026 | Section 122 tariffs expire (150-day limit) unless Congress extends or modifies them | Duty rates may change again, or increase to the 15% rate the President signaled |
Every decision you make between now and July 2026 sits inside this timeline. The sections below explain each phase in detail.
Why SCOTUS Struck Down IEEPA Tariffs: What the Court Actually Said
The case asked one question: does IEEPA give the President the authority to impose tariffs? Chief Justice Roberts, writing for the majority, answered no. IEEPA authorizes the President to “regulate importation,” but the Court held that “regulate” does not mean “tax.” Congress has always used explicit language (“duties,” “surcharges,” “tariffs”) when it delegates tariff authority. IEEPA contains none of that language. Six justices agreed on the outcome. Three justices (Thomas, Kavanaugh, and Alito) dissented. You can read the full majority opinion on the U.S. Supreme Court official website.
The ruling invalidated two sets of tariffs. First, the “fentanyl” or trafficking tariffs imposed on imports from Canada, Mexico, and China beginning February 4, 2025. Second, the reciprocal tariffs (the so-called Liberation Day tariffs) imposed on imports from most other countries beginning April 2, 2025. Both are legally void. CBP stopped collecting them at 12:00 AM on February 24, 2026.
Which Tariffs Are Gone and Which Ones Are Not
This is the most misunderstood aspect of the decision. When SCOTUS struck down IEEPA tariffs, it did not eliminate all U.S. tariffs. It eliminated IEEPA tariffs specifically. A significant body of trade measures remains fully intact, and the administration moved within hours to replace what the Court struck down.
| Tariff Type | Legal Authority | Status After Ruling |
|---|---|---|
| Fentanyl/trafficking tariffs (Canada, Mexico, China) | IEEPA | Void. Collection ended Feb 24, 2026. |
| Reciprocal tariffs (“Liberation Day”) | IEEPA | Void. Collection ended Feb 24, 2026. |
| IEEPA-based de minimis termination (China) | IEEPA | Void as an IEEPA measure |
| 10% global import surcharge | Section 122, Trade Act of 1974 | In effect from Feb 24, 2026 for 150 days |
| Steel, aluminum, automobiles, semiconductors | Section 232, Trade Expansion Act 1962 | Fully in effect. Not affected by ruling. |
| China-origin goods tariffs | Section 301, Trade Act of 1974 | Fully in effect. Not affected by ruling. |
Section 232 tariffs cover steel, aluminum, copper, automobiles, automobile parts, semiconductors, and lumber. These derive from the Trade Expansion Act of 1962, not IEEPA, and courts have consistently upheld them. Section 301 tariffs on Chinese-origin goods remain at existing rates. The U.S. Trade Representative launched a new Section 301 investigation into China’s Phase One compliance in October 2025, which opens the door to additional action later in 2026. Section 122 tariffs (the 10% global surcharge Trump signed within hours of the ruling) stack on top of normal duties and any applicable Section 301 tariffs. Critically, products already subject to Section 232 tariffs are explicitly exempt from Section 122, to prevent double-stacking. For a product subject to 25% Section 301 duties, such as Chinese-origin IT hardware, the effective rate is now approximately 35%. For steel, aluminum, or other Section 232 products, only the Section 232 rate applies.
Treasury Secretary Bessent stated publicly that combining Section 122, Section 232, and Section 301 tariffs “will result in virtually unchanged tariff revenue in 2026.” The legal basis shifted, but the cost of importing did not.
The $166 Billion Refund: Who Gets Paid and How
CBP collected approximately $166 billion in IEEPA duties across more than 53 million import entries from roughly 330,000 importers between February 2025 and February 24, 2026. The Supreme Court declared the tariffs unlawful. It did not order refunds and did not specify how recovery should work. Justice Kavanaugh’s dissent warned the refund process would be a “mess.” That warning has proven accurate.
On March 4, 2026, CIT Judge Richard K. Eaton ordered CBP to refund IEEPA duties to all importers of record, not just those who filed lawsuits. Two days later, CBP advised the Court that it could not immediately comply. Processing 20+ million unliquidated entries entry-by-entry was operationally impossible. The CIT paused its order and gave CBP 45 days to build a proper system. CBP is now developing a new ACE platform capability called CAPE (Consolidated Administration and Processing of Entries) with a target launch date of approximately mid-April 2026. As of March 11, 2026, CBP’s own progress report shows CAPE at varying stages of completion: the Claim Portal is 70% built, Mass Processing is 40%, Review and Liquidation is 80%, and the Refund component itself is 60% complete. Mid-April is CBP’s best estimate and not a guarantee. Additionally, CAPE will allow importers to designate a third-party payee using CBP Form 4811, meaning importers who have sold their refund claims can route the payment directly to the purchasing party.
Here is the single fact that determines whether your company receives a refund. CBP issues refunds only to the importer of record listed on the customs entry. It does not refund the buyer who paid tariff-inclusive prices, the supplier who passed the cost through, or the 3PL whose name appears nowhere on the customs form. The refund goes exclusively to whoever was named as IOR on the entry.
How to Claim Your IEEPA Tariff Refund
Register for ACH refund authorization in ACE immediately. As of February 6, 2026, CBP processes all refunds exclusively through ACE accounts via Automated Clearing House electronic transfer. Paper refund checks no longer exist. Log into the ACE Secure Data Portal, submit an ACH refund authorization, and designate a valid U.S. bank account. Non-resident importers must have a NACHA-compliant U.S. bank account. According to CBP’s own court filing, as of March 6, only 21,423 of the 330,566 affected importers (6.5%) had completed ACH setup. If you are in the 93.5% who have not, your refund will not reach you when CAPE launches regardless of whether you are legally entitled to it.
Pull the ES-003 Entry Summary report in ACE. Filter every entry from February 4, 2025 through February 24, 2026. Identify every Chapter 99 classification code, which are the IEEPA-specific duty lines. Cross-reference against payment confirmations, customs broker records, and any duty reimbursements made to or received from other parties. If IEEPA tariff costs moved in either direction through your supply chain, document that clearly before the CAPE declaration window opens. Disputes over refund ownership are already forming between importers and their upstream suppliers and downstream customers.
For liquidated entries, the 180-day protest window is running now. The CAPE process covers unliquidated entries and recently liquidated entries that are not yet final. For entries that liquidated before September 2025, file a protest with CBP to preserve your refund rights. Talk to your customs broker or trade counsel today. That deadline is not theoretical. It is a fixed calendar date, and it does not extend.
One final note on buyout offers: some importers are currently receiving unsolicited offers to purchase their refund claims at 60 cents on the dollar or more. Whether that makes commercial sense depends entirely on your cash position, risk tolerance, and confidence in the CAPE timeline. Leave this decision to your CFO and legal counsel, not a third party applying time pressure.
What the IEEPA Ruling Reveals About Your Supply Chain
Most articles stop at explaining what happened. This section covers what the ruling has revealed, specifically which supply chain structures leave money on the table and which ones put your business in the strongest possible compliance position going forward.
The refund eligibility question has functioned like an X-ray for import structures. Because SCOTUS struck down IEEPA tariffs and CBP will only refund the importer of record named on each entry, companies that used a qualified importer of record service with their own entity on the customs entry can file for refunds directly. Companies that relied on supplier-managed shipping, informal fulfillment arrangements, or broker-nominated IOR structures cannot, because they are not on the entry, and CBP will not negotiate that point. The $166 billion in refunds does not go to the companies that paid the most in tariffs. It goes to the companies that were properly structured from the start.
That is the structural lesson the IEEPA ruling delivers, and it applies beyond refunds. The same entry structure that determines refund eligibility also determines who bears liability in a customs audit, who controls the compliance record over the mandatory 5 to 7 year retention period, and who holds negotiating power when duties are disputed. In each case, the answer is the same: the importer of record named on the entry.
What the IEEPA Ruling Means for Your IOR Strategy
Since SCOTUS struck down IEEPA tariffs, the U.S. import compliance environment has not grown simpler. It has grown more complex. The ruling changed the legal landscape in ways that make a qualified importer of record service more important, not less. Three developments confirm this.
The De Minimis Suspension Still Stands
The Learning Resources ruling had no effect on the de minimis suspension. On August 29, 2025, CBP suspended broad Section 321 de minimis treatment for many shipments under Executive Order 14324, which dramatically increased the volume of parcels moving through formal entry channels. Formal entry requires a legally recognized importing party declared in the customs record. Businesses that previously moved volume through Section 321 without a formal importer of record structure now face customs holds on virtually every shipment. This is not a tariff issue. It is a compliance infrastructure issue, and the SCOTUS ruling does not resolve it.
Fulfillment Providers Are Not Importers of Record
The IEEPA refund process has exposed one of the most dangerous misconceptions in cross-border logistics. Major fulfillment providers (ShipBob, ShipMonk, and comparable 3PLs) operate under execution-only contracts. They handle storage, picking, labeling, and shipping. They do not assume legal importer liability, and they do not register as IOR on your behalf. If your company relied on a fulfillment provider as a de facto importer of record during 2025, you are likely not the named IOR on your customs entries, which means CBP sends no refund to you and you have no direct path to recovery from the government. Your only route runs through your commercial contracts with whoever was named on the entry.
Regulatory Volatility Has Increased, Not Decreased
The replacement tariff structure (Section 122 stacking on Section 301, with Section 232 products exempt) means effective duty rates for many product categories remain near or above their IEEPA-era levels. The legal authority is now different, but the financial exposure is comparable. For companies managing multi-country deployments, the combination of Section 122 in the U.S., CARM changes in Canada, and the approaching EU €3 parcel duty creates a compliance environment that demands active management and cannot rely on a set-and-forget import arrangement.
IOR vs EOR vs DDP: Why the Distinction Matters More Than Ever
The post-IEEPA trade environment has made the IOR, EOR, and DDP distinction the most commercially consequential question in cross-border logistics. The Learning Resources ruling made it explicit: the party named as importer of record on the customs entry receives refunds, bears liability for compliance failures, and controls the customs record. That is not a legal technicality. It is a business decision with direct financial consequences.
| Function | IOR (Importer of Record) | EOR (Exporter of Record) | DDP Shipping |
|---|---|---|---|
| Who is responsible | Legally registered importing entity in destination country | Legally registered exporting entity in origin country | Commercial arrangement between buyer and seller |
| Core obligation | Files import declaration, pays duties and taxes, holds certifications, bears compliance liability | Files export declaration, manages export licenses, handles denied party screening | Delivers goods to named place with all duties and taxes prepaid |
| Receives IEEPA refunds? | Yes, directly from CBP | Not applicable | Only if the DDP provider was also named as IOR on the entry |
| Required when | Every formal import into every country | Dual-use goods, controlled technology, pharmaceuticals, regulated exports | When the seller absorbs all import costs and the buyer receives goods duty-paid |
| Can a 3PL substitute? | No. 3PLs operate on execution-only contracts. | No. EOR requires legal export authority. | Only if the DDP provider holds a registered IOR entity in each destination country |
The critical misconception, exposed definitively by the 2025 regulatory changes, is the belief that a DDP shipping label makes the underlying IOR question disappear. It does not. DDP is a commercial pricing arrangement between buyer and seller. IOR is a legal compliance function with the government of the destination country. A DDP shipment that lacks a formally registered importer of record stalls at customs when the entry validation layer requires a legally recognized importing entity. No Incoterm overrides that requirement.
CARM in Canada and the EU €3 Parcel Duty: Two Compliance Deadlines You Cannot Miss
CARM in Canada
Canada’s Assessment and Revenue Management system introduced a material change in May 2025. Unregistered importers lost release-prior-to-payment privileges, which triggers customs holds on nearly every shipment. The fix is straightforward but time-sensitive: register in the CBSA portal, obtain a Business Number, post a surety bond or cash deposit, and connect your customs broker to your CARM account. CBSA reassesses required bond amounts annually, and importers whose required amount increased must update their financial security by January 15 to stay compliant. For non-resident importers into Canada, CARM compliance is not optional. Unregistered importers generate avoidable border delays every single day.
EU €3 Parcel Duty: Effective July 1, 2026
Effective July 1, 2026, the European Union imposes a fixed €3 customs duty per tariff heading per item category on all parcels under €150 entering the EU from third countries. This charge sits on top of VAT and is separate and additional. IOSS already handles VAT on low-value parcels. The €3 duty targets the high-volume parcel flow that platforms like Temu and Shein generate, but it applies to every cross-border seller in this bracket, regardless of platform. For businesses using IOR services to deliver goods DDP into EU markets, this changes landed cost calculations on every low-value shipment. Pricing, customer agreements, and IOR service arrangements all need review before July 1, not after the first invoice arrives showing a charge the buyer was not expecting.
What Replacing the IEEPA Tariffs Actually Costs Importers
| Scenario | Pre-IEEPA Ruling | Post-Ruling (from Feb 24, 2026) |
|---|---|---|
| General merchandise from EU | IEEPA reciprocal tariff rate | 10% Section 122 + normal duty |
| Chinese-origin IT hardware | 25% Section 301 + IEEPA tariff | 25% Section 301 + 10% Section 122 = approximately 35% |
| Steel and aluminum products | Section 232 + IEEPA tariff | Section 232 only. Section 122 does NOT apply. These products are explicitly exempt from the surcharge. |
| Goods from Canada and Mexico | IEEPA fentanyl tariffs | USMCA-compliant goods: normal duty only. Non-compliant: 10% Section 122 |
| Low-value e-commerce parcels (sub-$800) | Section 321 de minimis mostly suspended | De minimis suspension continues. Formal entry required. |
Section 122 tariffs run for 150 days from February 24, 2026, until approximately July 24, 2026, unless Congress modifies, terminates, or extends them. The President indicated a potential increase to 15%, which has not been implemented at time of publication. A coalition of state attorneys general has filed a separate legal challenge against the Section 122 tariffs, arguing they are overbroad, adding a second layer of uncertainty over whether the 10% surcharge survives the full 150 days. Treat the current 10% rate as a floor, not a ceiling, and monitor developments closely as July 24 approaches.
What to Do Before Your Next Shipment
Register for ACH refunds in ACE now. The CAPE system launches around mid-April 2026, and the processing queue forms before launch. If your company served as the importer of record on any entry between February 4, 2025 and February 24, 2026, ACH registration is the prerequisite for receiving your refund. Complete it today.
Identify your IOR on every 2025 entry. Pull the ES-003 Entry Summary and find every Chapter 99 line. Know exactly who was named as importer of record on each entry. If it was not your company, clarify your contractual rights with whoever was. The government will not resolve that question for you.
Talk to your customs broker about the 180-day protest window. For entries that liquidated before September 2025, the protest window is open now and does not extend. Filing preserves your refund rights on older entries that CAPE may not automatically cover.
Recalculate your landed costs under Section 122. The new 10% global surcharge stacks on existing duties. For every product category you import regularly, the effective duty rate changed on February 24, 2026. Reprice before your next purchase order, not after the goods clear.
Audit your de minimis channels. The Section 321 suspension did not end with the IEEPA ruling. If your business still moves volume through channels that relied on de minimis treatment, confirm that a named importer of record is in place on every formal entry.
Review your EU and Canada arrangements before July 1, 2026. The EU €3 parcel duty changes landed cost calculations for every low-value shipment into EU markets. CARM non-compliance is generating avoidable border holds today. Both issues have clear fixes, but only if you act before the respective deadlines.
Carra Globe: IOR Services Across 175+ Countries
Carra Globe operates as Importer of Record and Exporter of Record across 175+ countries, managing DDP customs clearance, freight forwarding, trade compliance, warehouse logistics, and white glove delivery for technology companies, hardware distributors, and commercial importers worldwide.
When IEEPA tariffs collected, our clients had their own entity named as IOR on every entry. When refunds process through CAPE, those clients receive them directly. When Section 122 stacks on Section 301, we reclassify and reroute before the purchase order goes out. Regulatory upheaval is not a disruption when the compliance infrastructure already exists before your cargo departs.
Contact Carra Globe to review your IOR structure and refund eligibility →
Frequently Asked Questions
The Supreme Court struck down IEEPA tariffs. Do I get an automatic refund?
Not automatically. The CIT ordered CBP to initiate a universal refund process, but CBP cannot process 53 million entries immediately. The CAPE system launches around mid-April 2026. Register for ACH refunds in ACE now. For liquidated entries older than 180 days, file a protest with CBP to preserve your rights. That window is running today and does not extend.
My supplier was the importer of record, not my company. Can I still get a refund?
Not directly from the government. CBP sends refunds to the importer of record on the customs entry. If that is your supplier, the refund goes to them. Your recovery path runs through your commercial contracts, specifically whether your supplier agreement addresses tariff pass-through and who bears the cost of duties paid. Review those contracts now. Disputes between importers and their commercial partners on exactly this question are already active.
IEEPA tariffs are gone. Do I still need an importer of record service?
Yes, and the case for using one is stronger now than it was before the ruling. Even though SCOTUS struck down IEEPA tariffs, the de minimis suspension, Section 122 tariffs, CARM in Canada, and the EU €3 parcel duty all require formal import compliance structures. Every formal customs entry in every country requires a legally registered IOR. The ruling changed which tariffs apply. It did not remove the legal requirement for a named importer of record on every declaration.
What is the difference between the importer of record and the consignee?
The consignee physically receives the goods. The importer of record is the legally registered entity responsible for filing the import declaration, paying all duties and taxes, holding required certifications, and bearing full compliance liability in the destination country. They are often the same entity, but they do not have to be. When they differ, the IOR holds all legal exposure, including eligibility for IEEPA duty refunds, regardless of who paid for the goods or who ultimately uses them.
What does Section 122 mean for my duty rates right now?
Section 122 adds a 10% surcharge on top of all existing normal duties and Section 301 duties on Chinese goods. Products subject to Section 232 tariffs are exempt from Section 122. For a product previously subject to 25% Section 301 duties, the effective rate is now approximately 35%. Section 122 runs for 150 days from February 24, 2026, until approximately July 24, 2026, unless Congress modifies or extends it. The President indicated a potential increase to 15%, which has not yet been implemented.
My logistics provider says they handle everything DDP. Does that mean my IOR question is covered?
Ask one specific question: “Who is named as the importer of record on the customs entry?” A qualified DDP provider answers immediately and in writing, with the registered entity name and customs registration number in the specific destination country. A provider relying on a broker network or third-party nominee takes time to find out. When a compliance issue arises, the liability chain becomes unclear at exactly the moment clarity matters most. DDP is a commercial arrangement. IOR is a legal compliance requirement. The two are not the same thing.
Can a non-resident company import into the U.S. without a U.S. legal entity?
Yes. Foreign companies import into the U.S. using a Customs Assigned Number from CBP instead of a U.S. EIN, along with a customs bond. A licensed customs broker or professional IOR service manages the filing mechanics. The IEEPA ruling did not change this process. Section 122 and Section 232 tariffs apply in the same way they apply to domestic importers. The ruling changed the tariff basis, not the import entry requirements for non-resident importers.