UPS Sues Customs Over Tariff Refunds
The shipping giant seeks re-liquidation and refunds of IEEPA duties and interest after the Supreme Court ruled the tariffs unlawful.
Updated on Nov. 10, 2026 in International Trade
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UPS filed a lawsuit at the US Court of International Trade against US Customs and Border Protection seeking refunds of duties and accrued interest paid under IEEPA tariffs. The filing follows a February US Supreme Court ruling that the IEEPA tariffs were unlawful.
Why it matters
The case shows how importers are pursuing refunds for tariffs struck down by the courts, with the outcome affecting how duty costs are recovered across US supply chains. UPS said it would pass any recovered funds to the customers who bore those costs.
UPS has received about $500 million in tariff refunds from CBP, of which about $230 million had been passed to customers by early October, leaving roughly $270 million still owed. Whether refunds on finally liquidated entries will be granted depends on a re-liquidation order the court has not yet issued.
The players
UPS
United Parcel Service is a global package delivery and supply chain company that acted as importer of record on the tariffed entries.
US Customs and Border Protection
CBP is the federal agency responsible for collecting duties at US borders and administering the tariff refund program.
US Court of International Trade
The federal trade court in New York has exclusive jurisdiction over most civil actions challenging US customs duties.
The details
UPS, as importer of record on the covered entries, filed the suit against CBP seeking re-liquidation and refunds of duties and accrued interest. Co-plaintiffs UPS Oasis Supply Corp and UPS Supply Chain Solutions joined the filing.
Timeline
February 2026: US Supreme Court ruled IEEPA tariffs unlawful.
April 2026: CBP's CAPE program Phase 1 covered unliquidated entries.
June 2026: CAPE Phase 2 opened.
October 2026: CAPE Phase 3 opened for finally liquidated entries.
November 6, 2026: UPS filed the lawsuit at the Court of International Trade.
Market Dynamics
The lawsuit follows the US Supreme Court's February ruling that IEEPA tariffs were unlawful, turning that decision into a claim for refunds. It shows importers moving from refund programs to litigation for finally liquidated entries that the administrative process does not cover.
Importers with unliquidated or finally liquidated entries may need to track CBP refund phases and any Court of International Trade re-liquidation orders. Refund timing and eligibility will determine how quickly duty costs return to company balance sheets.
The takeaway
Companies paying tariffs should document duty payments and monitor refund eligibility, since finally liquidated entries may require court action rather than administrative claims. Recovered funds may need to be shared with customers who bore the original costs.
Further reading
For broader context on import duties and refund disputes, see International Trade.
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