IEEPA Duties Ended, Section 122 Began, and CIT Later Invalidated Section 122

Informational only - not legal advice.

What happened

Feb. 20, 2026 - Supreme Court invalidates IEEPA tariff authority

In Learning Resources, Inc. v. Trump, 146 S. Ct. 628 (2026), the Supreme Court held that IEEPA does not authorize tariffs on imports. That ruling knocked out the old IEEPA tariff lane, but it did not itself create a ready-made refund portal or change other tariff authorities. (Opinion PDF)

Feb. 24, 2026 - CBP ends IEEPA collection

CBP announced that IEEPA duty collection ended effective 12:00 a.m. ET on Feb. 24 and that the associated IEEPA Chapter 99 headings were inactivated in ACE. (CBP CSMS #67834313)

Feb. 24, 2026 - Section 122 starts at 10%

At 12:01 a.m. ET on the same date, CBP began collecting a separate temporary 10% Section 122 surcharge. That was a different statutory lane from IEEPA and was not the IEEPA refund target. (CBP CSMS #67844987, Federal Register - Proclamation 11012)

Feb. 24, 2026 - De minimis remains suspended

CBP separately stated that the IEEPA decision did not restore de minimis duty-free treatment. (CBP CSMS #67845486)

Feb. 24-27, 2026 - FedEx and customers focus on refund pass-through

FedEx issued a customer alert after the Supreme Court ruling and later stated publicly that, if refunds are issued to FedEx, its intent is to refund the shippers and consumers who originally bore those charges. Reuters then reported a proposed customer class action filed against FedEx over tariff refunds and related fees. Those facts matter because express-carrier shipments often involve a carrier or brokerage advancing duties and billing them back. (FedEx alert - Feb. 24, 2026, FedEx - U.S. tariffs impact, Reuters - Feb. 27, 2026)

Mar. 5-9, 2026 - Section 122 gets its own litigation track

The Section 122 replacement-duty regime was challenged separately at the Court of International Trade:

• Mar. 5: multistate plaintiff case, State of Oregon, et al. v. Trump, Court No. 26-01472
• Mar. 9: private-importer case, Burlap and Barrel / Basic Fun v. Trump, Court No. 26-01606

That means the replacement-duty lane is not just a policy story; it is now a separate live litigation lane from IEEPA refunds. (Oregon complaint PDF, Burlap and Barrel complaint PDF)

Mar. 6, 2026 - CBP says immediate mass refunds are not operationally feasible

In Atmus Filtration, CBP told the CIT that immediate system-wide refund execution was not operationally feasible in ACE and described a buildout effort for a consolidated refund workflow. (Mar. 6 declaration PDF)

Mar. 19-20, 2026 - CBP gives the latest public CAPE numbers; CIT keeps immediate compliance suspended

CBP's Mar. 19 declaration provided the latest public CAPE buildout numbers reviewed in this pass:

• Claim Portal: 73%
• Mass Processing: 45%
• Review and Liquidation/Reliquidation: 80%
• Refund: 63%

CBP also stated that the refund component could process payment either to the importer of record or to an entity the importer designated to receive refunds on its behalf. On Mar. 20, the CIT amended its order to make clear it covered all IEEPA-duty entries, including Brazil and India, while still suspending immediate compliance. (Mar. 19 declaration PDF, Mar. 20 order PDF)

Apr. 8-10, 2026 - The early Atmus supervision vehicle drops out; Section 122 dockets stay active

The CIT current-week disposition sheet dated Apr. 10, 2026 reflects an Apr. 8 Rule 41(a)(1)(A)(i) dismissal in Atmus Filtration. The same disposition sheet also shows fresh Apr. 8-9 activity in the two Section 122 dockets. In parallel, unassigned IEEPA cases were being managed under Administrative Order 25-02. The practical takeaway is that refund administration is still a live issue, but the original Atmus posture should not be treated as an indefinitely open enforcement vehicle. (CIT current week's disposition sheet, Administrative Order 25-02)

Apr. 20, 2026 - CAPE Phase 1 opened for IEEPA refunds

CBP announced that CAPE Phase 1 would launch in the ACE Secure Data Portal on April 20, 2026. CAPE is the IEEPA refund workflow: the filer submits a CAPE Declaration, CBP removes IEEPA HTS numbers, recalculates duties, and then liquidates or reliquidates the affected entries. Phase 1 is limited to certain unliquidated entries and certain entries within 80 days of liquidation. (CBP CSMS #68315804, CBP IEEPA refunds page)

May 7, 2026 - CIT invalidates Proclamation No. 11012

The CIT issued Slip Op. 26-47 in the consolidated Section 122 cases. The court declared Proclamation No. 11012 invalid, entered a permanent injunction for The State of Washington, Burlap and Barrel, and Basic Fun, and ordered refunds with interest for Section 122 duties paid by those importer plaintiffs before implementation. The court declined universal relief and dismissed the other state plaintiffs for lack of standing. (CIT Slip Op. 26-47, Judgment)

What this means if FedEx or another express carrier handled clearance

1. The IEEPA refundable target is still the old IEEPA duty lane

The Supreme Court decision and CAPE workflow are about historical IEEPA duties, not Section 122 and not other tariff programs. If you are looking at a shipment cleared after Feb. 24, 2026 at 12:01 a.m. ET, it may include Section 122 duties instead of IEEPA duties. Section 122 now has its own May 7 CIT ruling, but it still should not be mixed into IEEPA CAPE calculations. (CBP CSMS #67834313, CBP CSMS #67844987, CIT Slip Op. 26-47)

2. Carrier billing does not override importer-of-record mechanics

Express carriers often advance duties, brokerage charges, and related fees, then bill them back. That does not automatically make the end customer the legal refund claimant. Refund posture still turns first on the entry record and the importer of record.

3. FedEx's public intent statement helps, but it is not the same thing as claim control

FedEx's stated intent to pass refunds through if refunds are issued to FedEx is helpful, but it does not eliminate the need to identify the entry, the importer of record, the duty type, and the liquidation/refund path. CAPE filing and refund routing still begin with the entry record and IOR.

What to do now

If you think shipments handled by FedEx or another express carrier included IEEPA duties:

1. Build an entry list with entry numbers, entry dates, and the carrier or brokerage involved.
2. Request entry summaries and billing support, especially CBP Form 7501 and any ACE export the broker can provide.
3. Confirm who the Importer of Record is on each entry. Do not assume it is the buyer.
4. Separate old IEEPA duty lines from later Section 122, Section 232, Section 301, or other duties.
5. Track liquidation status and deadlines because the procedural path still depends on the entry's posture.

If FedEx handled clearance, start here:

• /learn/request-docs/7501-fedex-logistics

What we are watching next

• Any additional CBP guidance on CAPE Phase 1, Phase 2, rejected declarations, or payment timing
• New CIT orders or settlements affecting refund administration for IEEPA-duty entries
• Stay, appeal, CBP implementation, or broader-remedy activity after the May 7 Section 122 ruling
• Additional carrier or brokerage statements about refund pass-through mechanics