The U.S. Court of International Trade has ruled in favor of Freestyle World, Inc. and certified a class action lawsuit against U.S. Customs and Border Protection (CBP) regarding unlawfully imposed tariff duties. This decision affects thousands of importers who paid these duties between February 1, 2025, and February 19, 2026. The ruling allows these importers to seek refunds for duties deemed unlawfully collected under the International Emergency Economic Powers Act (IEEPA).
This case, Freestyle World, Inc. v. United States, was filed on February 19, 2026, under docket number 26-01088. The court's decision to certify the class action is significant because it provides a collective avenue for importers to recover funds that they might not have been able to claim individually. The ruling comes in the wake of a Supreme Court decision that declared the President did not have the authority to impose tariffs under IEEPA.
Freestyle World, Inc., the plaintiff in this case, represents itself and all other importers who paid the challenged duties during the specified timeframe. The dispute arose after the Supreme Court ruling in Learning Resources, Inc. v. Trump, which invalidated certain tariff orders as unlawful. Freestyle's motion for class certification sought to include all importers who paid these duties and to appoint class counsel for the collective action.
The court's ruling not only certifies the class but also grants the appointment of class counsel. Judge Richard K. Eaton presided over the case and ruled that the class meets the necessary legal standards for certification. The court found that the class is sufficiently numerous, with estimates suggesting that it includes tens of thousands of importers, and that there are common questions of law and fact that warrant a collective resolution.
In the opinion, Judge Eaton stated, "The relief sought by Plaintiff, on behalf of itself and the proposed class, is an injunction directing liquidation or reliquidation of entries without regard to unlawfully imposed IEEPA duties." This means that the court will order the CBP to process refunds for the affected importers.
The impact of this ruling is significant for the import community. It opens the door for many importers to receive refunds on duties that they paid under the now-invalidated tariff orders. The court's decision is expected to expedite the refund process, which has been complicated by the volume of claims and the administrative burden on CBP. The ruling also sets a precedent for future cases involving similar claims against the government regarding tariff duties.
As of now, the court's decision can be appealed by the government, which has previously expressed opposition to the class certification. The government had argued that the proposed class was too diverse and that individual claims would require specific forms of relief. However, the court found that the commonality of the claims justified class action treatment.
Moving forward, the certified class will likely proceed to seek the injunction for the liquidation and reliquidation of the entries without the unlawful duties. This process is expected to benefit many small importers who may not have the resources to pursue individual claims. The court's ruling marks a significant step in addressing the financial burdens imposed on importers by the previously enforced tariff duties.