Only IEEPA tariffs (HTS 9903.01.xx) on China imports are refundable following the Supreme Court ruling. Section 301 tariffs (HTS 9903.88.xx) were imposed under entirely different legal authority and remain in effect. Both appear on the same customs entry for most China imports, creating confusion about what is actually recoverable. The distinction is not academic — it determines whether your refund claim is $50,000 or $500,000. For answers to other common questions, see the FAQ page.
The fundamental legal difference
IEEPA tariffs were imposed under the International Emergency Economic Powers Act, which grants emergency trade authority to the president. The Supreme Court ruled on February 20, 2026, that using IEEPA to impose tariffs on merchandise imports exceeded the statute’s scope. Every IEEPA tariff ever collected — on China and all other countries — is unconstitutional and refundable.
Section 301 tariffs were imposed under Section 301 of the Trade Act of 1974, which authorizes the U.S. Trade Representative to impose tariffs in response to unfair trade practices. These tariffs on China have been in effect since July 2018 — years before IEEPA tariffs existed. They were challenged in separate litigation (HMTX Industries v. United States), but the Court of International Trade upheld them. Appeals continue, but no refund mechanism exists for Section 301 tariffs at this time.
These are two different laws, two different legal challenges, two different outcomes. Conflating them will delay or derail your refund claim.
Comparison table
| Feature | IEEPA Tariffs | Section 301 Tariffs |
|---|---|---|
| Legal authority | International Emergency Economic Powers Act | Trade Act of 1974, Section 301 |
| HTS code family | 9903.01.xx | 9903.88.xx |
| Effective date on China | February 4, 2025 | July 6, 2018 (List 1) |
| Rate on China | 10–145% (varied by date) | 7.5–25% (varied by list) |
| Executive orders | EO 14195 (fentanyl), EO 14257 (reciprocal) | Presidential Memorandum, Aug 2017 |
| Countries affected | 50+ countries | China only |
| Supreme Court ruling | Unconstitutional — Feb 20, 2026 | Not struck down |
| Current status | Eliminated. Refunds processing. | Still in effect. |
| Refundable now? | Yes — full amount plus interest | No |
How both appear on the same entry
A typical customs entry for a China import filed between April and December 2025 contained multiple tariff layers. Here is what appears on a CF-7501 entry summary for a hypothetical $100,000 shipment of consumer electronics (HTS 8471, 0% MFN rate):
Line 1 — MFN duty: $0 (0% rate on HTS 8471)
Line 2 — Section 301: $25,000 (25% under HTS 9903.88.03, List 1) — NOT refundable
Line 3 — IEEPA fentanyl: $10,000 (10% under HTS 9903.01.20) — REFUNDABLE
Line 4 — IEEPA fentanyl additional: $10,000 (10% under HTS 9903.01.24) — REFUNDABLE
Line 5 — IEEPA reciprocal: $34,000 (34% under HTS 9903.01.25) — REFUNDABLE
Total duty paid: $79,000. Refundable amount: $54,000 (IEEPA only). Non-refundable: $25,000 (Section 301).
If this importer files $79,000 as their refund claim, it will be rejected. The correct claim is $54,000. This is why separation is essential.
The four Section 301 lists
Section 301 tariffs on China were imposed in four waves between 2018 and 2019, each covering different product categories:
- List 1 (HTS 9903.88.01): 25% on $34 billion of goods. Effective July 6, 2018. Industrial machinery, electronics.
- List 2 (HTS 9903.88.02): 25% on $16 billion of goods. Effective August 23, 2018. Semiconductors, plastics, chemicals.
- List 3 (HTS 9903.88.03/04): 25% on $200 billion of goods. Effective September 24, 2018 at 10%, raised to 25% May 10, 2019. Broad consumer and industrial products.
- List 4A (HTS 9903.88.15/16): 7.5% on $120 billion of goods. Effective September 1, 2019 at 15%, reduced to 7.5% February 14, 2020. Consumer electronics, apparel, footwear.
Your products may fall under one or more lists. The list determines the Section 301 rate — which is the amount you cannot claim as a refund. Only the IEEPA amounts on top of these rates are recoverable.
How to separate them on your entries
Step 1: Pull your ES-003 report from the ACE Secure Data Portal for the covered period (February 4, 2025 through February 24, 2026). See the documentation guide for instructions.
Step 2: For each entry, identify lines with HTS codes beginning with 9903.01 (IEEPA) and lines beginning with 9903.88 (Section 301).
Step 3: Sum only the 9903.01.xx duty amounts. This is your refundable IEEPA exposure.
Step 4: Set aside the 9903.88.xx amounts. These are not recoverable now but may become recoverable if separate Section 301 litigation succeeds.
A professional assessment performs this separation automatically across your entire portfolio. The free assessment identifies every IEEPA entry, isolates it from Section 301, and calculates the precise refundable amount.
Common mistakes to avoid
Mistake 1: Claiming the total duty amount. If you submit a CAPE declaration that includes Section 301 amounts in an IEEPA refund claim, it will be returned for correction. This costs weeks of processing time and pushes you back in the queue.
Mistake 2: Ignoring IEEPA because Section 301 is larger. On some entries, Section 301 represents a larger dollar amount than IEEPA. Importers sometimes dismiss the IEEPA portion as “not worth pursuing.” Over a full year of imports, even a 20% IEEPA layer on $2 million in China sourcing is $400,000 in recoverable duties — a material amount by any standard.
Mistake 3: Waiting for Section 301 resolution before filing IEEPA. The two programs have independent legal tracks. IEEPA refunds are available now. Section 301 litigation is ongoing with no guaranteed outcome or timeline. File IEEPA now; monitor 301 separately. For the full rate history, see the China IEEPA rate timeline.
The bottom line
IEEPA is recoverable today. Section 301 is not. The two programs use different HTS code families, different legal authority, and different refund mechanisms. Separate them on your entries, file the IEEPA claim through CAPE or pursue assignment through firms like tariffresolution.com and tariffbuyouts.com, and track Section 301 developments independently. For step-by-step CAPE filing preparation, see the CAPE launch guide.
FAQ
Q: Will Section 301 tariffs on China ever be refundable? A: Possibly, but not under the current ruling. Separate litigation challenges Section 301 tariffs, and appeals are ongoing. If a future ruling strikes them down, a separate refund mechanism would be established. Do not wait for this outcome before filing your IEEPA claim.
Q: I only see 9903.88 codes on my entries and no 9903.01 codes. Am I eligible for any refund? A: If your entries contain only Section 301 codes (9903.88.xx) and no IEEPA codes (9903.01.xx), those entries are not eligible for refund under the current ruling. This would mean the entries were filed before February 4, 2025 (when IEEPA tariffs began) or involved products that were excluded from IEEPA for some other reason.
Q: Can I file one claim that covers both IEEPA and Section 301 if Section 301 is struck down later? A: No. The CAPE system processes IEEPA refunds only. If Section 301 tariffs are eventually struck down, CBP would establish a separate refund process. File your IEEPA claim now through CAPE and handle Section 301 independently if and when it becomes available.