As previously shared in an email update to the full Toy Association membership, on March 4, the U.S. Court of International Trade issued an order requiring refunds to importers of goods whose entries were subject to tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

Under the court’s order, U.S. Customs and Border Protection (CBP) has been directed to liquidate all unliquidated entries that included IEEPA duties, with those duties removed. The decision applies broadly to importers of record whose entries were subject to the tariffs.

In its order, the court stated that “all importers of record whose entries were subject to IEEPA duties are entitled to the benefit of the Learning Resources [Supreme Court] decision.” Many entries associated with Toy Association member companies remain unliquidated and are therefore covered by the order.

However, on March 6, CBP informed the court that it could not immediately comply with the order because the agency is not currently able to halt processing of the tariffs and begin issuing refunds. CBP told the court that it could have a system in place within approximately 45 days to manage what could be an unprecedented volume of refund requests.

As a result, the court suspended its original directive and issued a new order “to the extent that it directs immediate compliance.”

“Notably, the court did not vacate or withdraw the underlying order — it simply acknowledged that immediate execution is not feasible. CBP now has breathing room to build its automated refund tool, though the court set no specific deadline and left the terms of the suspension deliberately open-ended,” says legal news source JD Supra.

In the meantime, according to Politico, the Trump administration must provide the Court of International Trade with a report by 2 p.m. on Thursday, March 12 outlining its plan for refunding tariffs that the U.S. Supreme Court previously ruled unlawful. The update could provide additional insight into how federal officials intend to manage an estimated $166 billion in potential repayments tied to the invalidated tariffs.

The Toy Association continues to actively monitor policy and legal developments and will provide members with timely updates as new information becomes available.