U.S. importers are closely watching two potential duty-relief developments in late 2025: the legal challenge to tariffs imposed under the International Emergency Economic Powers Act (IEEPA) and the (still pending) renewal of the Generalized System of Preferences (GSP). Each could lead to significant refunds of tariffs paid, but the circumstances and procedures differ widely. Below we compare IEEPA tariff refunds versus GSP retroactive refunds, including the Supreme Court's review of IEEPA tariffs, the current status of GSP renewal, and practical steps for importers to preserve eligibility in both scenarios.

Background: IEEPA Tariffs and the GSP Program

IEEPA Tariffs: In 2020, then-President Trump invoked the International Emergency Economic Powers Act (IEEPA) to impose sweeping new tariffs. These included "trafficking tariffs" on imports from China, Mexico, and Canada and "reciprocal tariffs" ranging from 10% to 50% on goods from most countries. IEEPA had never before been used to levy broad import duties. Many argued these actions overstepped presidential authority, since the Constitution gives Congress the power over tariffs.

GSP Program: The Generalized System of Preferences (GSP) grants duty-free treatment to thousands of products from developing countries. GSP expired on Dec. 31, 2020, and since then importers have been paying normal duties. Historically, Congress has allowed GSP to lapse multiple times but usually renews it retroactively, making duties paid during the lapse refundable. As of late 2025, GSP remains expired.

Supreme Court Review of IEEPA Tariffs

Lower courts ruled that IEEPA does not authorize the tariffs. The Supreme Court heard oral arguments in November 2025. Justices across the ideological spectrum expressed skepticism toward the use of IEEPA to impose tariffs, questioning its constitutionality under the major questions and nondelegation doctrines.

A decision is expected in 2026. If the Court strikes down the tariffs, importers could be eligible for refunds. If the Court upholds them, no refunds will be available.

How IEEPA Tariff Refunds Might Work if Tariffs Are Struck Down

If the Supreme Court rules against the tariffs, importers must actively claim refunds using:

• Post-Summary Corrections (PSCs): For unliquidated entries.
• Protests: For liquidated entries, within 180 days of liquidation.

CBP has not issued any refund guidance for IEEPA duties. The U.S. Solicitor General has stated that refunds will not be automatic. Importers must take action within existing regulatory timelines. Importers may also consider filing protective protests now to preserve claims.

CBP's Position on IEEPA Refunds

CBP continues to collect IEEPA tariffs and has not issued formal guidance on refunds. Unless instructed by the courts or Congress, CBP is unlikely to initiate automated refunds. Refunds will go only to the importer of record listed on the original entry.

GSP Status and Renewal Outlook (Late 2025)

GSP has been expired since the end of 2020. Legislation to renew GSP retroactively through 2030 has been introduced but not yet passed. Congress typically renews GSP with retroactive effect, authorizing refunds of duties paid during the lapse.

GSP Retroactive Refund Procedures

• Flagging Entries with SPI "A": CBP encourages importers to continue using the "A" indicator. If flagged, entries will be refunded automatically once GSP is renewed.
• Manual Requests for Unflagged Entries: After renewal, importers will have 180 days to file refund requests for eligible but unflagged entries.
• No Interest Paid: Refunds are processed without interest.

CBP will issue refund instructions via CSMS and Federal Register once renewal occurs.

Comparison of IEEPA vs. GSP Refunds

Aspect	IEEPA Tariff Refunds	GSP Retroactive Refunds
Trigger	Supreme Court ruling	Congressional legislation
Refund mechanism	PSCs or protests required	Automatic if flagged; manual if not
Refund certainty	Uncertain	High once renewed
Timing	Unknown	Typically 90–180 days after renewal
CBP guidance	Not issued yet	Standard process well established
Interest paid	Not expected	Not paid by law

What Importers Should Do Now

• Track affected entries: Identify entries impacted by IEEPA tariffs or GSP lapse.
• File protests or PSCs: Especially for IEEPA entries approaching liquidation.
• Flag GSP-eligible entries with SPI "A": This preserves refund eligibility.
• Organize documentation: Keep entry summaries, duty payment records, and invoices ready.
• Monitor legal and legislative updates: Watch for Supreme Court decisions and GSP renewal bills.
• Verify importer of record: Only the party listed on the entry receives the refund.
• Review contracts: Clarify who is entitled to receive refunds in DDP or pass-through scenarios.

Conclusion

IEEPA and GSP refunds represent two distinct refund pathways. GSP refunds follow a familiar and automated process when Congress acts. IEEPA refunds depend on an upcoming Supreme Court ruling and require active importer participation. Companies that prepare now will be best positioned to secure duty recoveries when opportunities arise.

Importers should consult with brokers, legal counsel, and customs specialists to preserve rights and act quickly once decisions are finalized.