CIT Orders DOJ to Respond on IEEPA Tariff Refunds

The Court of International Trade ("CIT") appears to be moving with notable urgency on the question of IEEPA tariff refunds. On February 25th, the CIT issued an order directing the United States Government, acting through the Department of Justice ("DOJ"), to respond to the motion filed by V.O.S. Selections seeking a permanent injunction that would compel the issuance of refunds. The Government's response is due tomorrow, February 27th — a remarkably compressed timeline that signals the court's intent to resolve this matter expeditiously.

There are two paths forward from here. If DOJ concurs that refunds should follow from the Supreme Court's ruling, that likely indicates the Government has already developed a formal refund process, potentially as part of or in conjunction with the court's order. When V.O.S. was originally decided at the CIT level, the court directed U.S. Customs and Border Protection ("CBP") to establish a refund mechanism. Plausibly, such a process is already substantially in place and awaiting final authorization.

If, on the other hand, DOJ opposes the motion, it will need to file its opposition by the Friday February 27th deadline. V.O.S. can then be expected to file a Reply Brief shortly thereafter, at which point the matter returns to the CIT's discretion. The court will determine whether oral argument is warranted or may elect to resolve the issue on the basis of the written submissions alone.

While this is not yet a moment for definitive conclusions, the pace of activity at the CIT is encouraging and suggests that meaningful progress on the refund question is being driven by judicial action. We will continue to monitor developments closely.