The Trump administration’s recent appeal of a Court of International Trade order involving tariff refunds is adding fresh uncertainty to the federal claims process for importers.

The Department of Justice on June 2 formally appealed CIT’s April order directing the federal government to universally issue refunds for now-defunct tariffs enacted under the International Emergency Economic Powers Act.

The move could set up new hurdles for certain companies seeking to recover funds, according to Michael Lowell, chair of the Global Regulatory Enforcement Group at law firm Reed Smith.

The appeal, filed with the U.S. Court of Appeals for the Federal Circuit, followed a May 29 court filing from DOJ arguing that CIT exceeded its authority by extending relief to “finally liquidated” entries and importers that have not filed cases in the court.

As of May 22, CBP had accepted roughly $85 billion in potential and certified tariff refunds for processing through the agency’s Consolidated Administration and Processing of Entries system, with about $20.6 billion already approved and sent to the Treasury Department for disbursement, according to a May 26 court filing.

Prior to the appeal, the government had estimated that total refunds could ultimately reach as much as $166 billion.

CFO Dive: What does this decision by the administration mean for companies that paid these tariffs, including those that have already received a refund or are still expecting one?

Michael Lowell: CAPE Phase 1 refund requests won’t be impacted by the government’s recently announced position. But for companies with remaining refund requests still to be submitted under a future phase of CAPE, there may be risk that they can’t recover without bringing suit in the Court of International Trade.

CFO Dive: Could the administration's planned appeal halt the tariff refund process or affect the timing or availability of refunds?

Michael Lowell: For entries eligible for refunds as part of CAPE Phase 1, the government’s decision shouldn’t have any practical effect.

The government is focused on entries that liquidated — or become final — more than 80 days before the importer filed a refund request. It argues those entries require an individual order from the Court of International Trade, effectively creating an importer-by-importer approach. That position may delay further CAPE functionality from being deployed, which would, in turn, delay the remaining refund process for importers.

CFO Dive: What's your sense of the administration's ultimate game plan here?

Michael Lowell: The government has already refunded over $20 billion in IEEPA tariffs. The end game is clear: the government is trying to keep as much of the remaining money as possible. To do that, the government is going to try to create barriers for importers trying to recover funds. Whether that strategy will ultimately be successful is yet to be seen.

CFO Dive: What should affected companies be doing right now in response to this development?

Michael Lowell: The immediate calculus hasn’t changed: companies should continue to ensure they’re preserving their legal right to a refund on any entries that weren’t eligible for processing under CAPE Phase 1. Companies should also be tracking the issue on appeal, so they can make an informed decision on whether to bring suit in the CIT.