Section 122 Refund Rights: 4 Actions to Take Now

How can I preserve my Section 122 tariff refund rights after the CIT ruling?

Non-plaintiff importers must take four time-sensitive actions to preserve Section 122 refund rights after the May 7, 2026 CIT ruling: (1) quantify Section 122 exposure across all entries from February 24, 2026 onward, (2) monitor the liquidation schedule for each affected entry, (3) file a protest under 19 U.S.C. 1514 within 180 days of liquidation, and (4) evaluate whether to join litigation directly. Waiting for the Federal Circuit appeal is operationally equivalent to forfeiting refund rights for entries that liquidate first.

Why does the CIT ruling not automatically give me a refund?

The CIT's injunction in State of Washington v. Trump applies only to the three named plaintiffs (State of Washington, Burlap & Barrel, Basic Fun!). For all other importers, CBP continues to collect Section 122 duties and the standard refund pathway requires a protest filed within 180 days of liquidation to preserve the legal question pending appellate resolution.

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The May 7, 2026 CIT ruling created an unusual interim state: Section 122 is legally unenforceable against three importers and fully enforceable against everyone else. For non-plaintiffs, the standard CBP refund-preservation pathway under 19 U.S.C. 1514 is the only mechanism to protect refund rights while the Federal Circuit appeal proceeds. The protest window opens at liquidation and closes 180 days later, entry by entry. GingerControl's duty recovery service quantifies Section 122 exposure across an importer's entry history, maps liquidation schedules, and supports protest filings. Book a no-cost consultation with Chen if you want to evaluate your exposure before the protest window closes.

Last updated: May 2026

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Action 1: Quantify Section 122 Exposure Across Your Entry History

Pull every entry summary from February 24, 2026 onward through your customs broker or directly from ACE. For each entry, identify the Section 122 line. Section 122 duties appear under the relevant Chapter 99 heading on the entry summary, separate from base MFN and other surcharge lines. Sum the Section 122 amounts by entry, by month, and across the full period.

The exposure quantification matters because it drives the decision tree. Importers with sub-$100K total exposure may rationally do nothing. Importers with $500K-$10M exposure typically file protests on every affected entry. Importers above $10M often combine protest filing with direct litigation in the CIT.

Worked example for a mid-market importer:

Period	Imports subject to Section 122	Average rate	Cumulative Section 122 duties
Feb-Apr 2026 (Q1 partial)	$4M	10%	$400K
May-Jul 2026 (Q2)	$6M	10%	$600K
Total at risk through July expiration	$10M	10%	$1M

For this importer, $1M of Section 122 duties is recoverable if the CIT ruling is affirmed on appeal, but only if protest rights are preserved on each underlying entry.

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Action 2: Map the Liquidation Schedule for Each Affected Entry

Liquidation is the act by which CBP makes its duty determination final. Under 19 U.S.C. 1514, the 180-day protest clock starts at liquidation, not at entry or payment [1]. Three liquidation patterns to track:

Liquidation type	Timing	Protest window
Standard liquidation	~314 days after entry	180 days from liquidation date
Accelerated liquidation	Anytime CBP elects	180 days from accelerated date
Deemed liquidation	One year after entry if no action by CBP	180 days from deemed-liquidation date

For an importer with a February 24, 2026 entry, standard liquidation falls around January 2027, and the protest window closes in July 2027. For an entry on July 23, 2026 (the day before Section 122 expiration), standard liquidation falls around June 2027, with protest window closing in December 2027.

GingerControl is AI global trade compliance infrastructure that helps importers, exporters, and customs brokers classify products, engineer optimal tariff positions, calculate duties, and track policy changes. The liquidation schedule mapping turns refund preservation from a periodic check into an active operations workflow.

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Action 3: File a Protest Under 19 U.S.C. 1514 Within 180 Days of Liquidation

This is the legally critical step. A timely protest preserves the refund question for each entry pending final resolution by the Federal Circuit or SCOTUS. Without the protest, the liquidation becomes final and the refund right is lost even if the appellate courts ultimately affirm the CIT ruling [1].

Protest mechanics:

• Filed via: ACE Portal (electronic submission)
• Form: CBP Form 19 (or electronic equivalent through ABI)
• Filed by: importer of record, licensed customs broker, or attorney with authority [2]
• Required content: entry number, liquidation date, legal grounds (citing CIT State of Washington v. Trump, Slip Op. 26-47), description of CBP decision being protested, requested relief (Section 122 duty refund)
• Deadline: 180 days from date of liquidation, strict (no extensions)

A protective protest does not require a fully briefed legal argument. It establishes the timeliness of the challenge and identifies the legal basis. CBP typically suspends Section 122 protests pending the appellate outcome, then processes them once the legal question is resolved.

For more on the protest mechanics, see How to File a Section 122 Tariff Protest with CBP.

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Action 4: Evaluate Whether to Join Litigation Directly

For importers with material exposure, protest preservation may not be the only path. Direct litigation in the CIT can produce an importer-specific injunction (as the three plaintiffs in State of Washington v. Trump obtained) that stops collection prospectively.

Litigation considerations:

Factor	Protest pathway	Direct CIT litigation
Cost	Low (broker/attorney fees per protest)	Higher (full CIT filing)
Speed of refund	Slow (waits for appellate resolution)	Faster (importer-specific injunction possible)
Prospective relief	None (refunds only)	Yes (stops future collection if injunction granted)
Strategic value	Preserves rights	Establishes individual standing
Required exposure	Any	Typically $1M+ to justify cost

The two pathways are not mutually exclusive. An importer can file protests on all affected entries (low cost, preserves rights) and separately bring its own action in the CIT (higher cost, prospective injunction).

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What "Doing Nothing" Costs

The cost of inaction is concrete and calculable. For each Section 122 entry that liquidates without a protest filed within 180 days, the refund opportunity is permanently lost, regardless of how the Federal Circuit rules. The math for a $1M exposure across 50 entries:

Action	Cost	Refund preservation
File protective protests on all 50 entries	~$10-25K in broker/attorney fees	Full $1M preserved
File on only the 10 largest entries	~$2-5K	~$700K preserved (assumes 70% of exposure in top 10)
Do nothing	$0	$0 preserved

The expected value of protest filing depends on the probability the Federal Circuit affirms the CIT ruling. Even at 30% probability, the expected refund on $1M exposure is $300K, well above protest filing costs.

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Frequently Asked Questions

What is the deadline to preserve Section 122 refund rights for non-plaintiffs?

180 days from the date of liquidation of each affected entry. The deadline is entry-specific, not portfolio-wide. The first February 2026 entries liquidate around January 2027, with the protest window closing in July 2027.

Can I file one protest covering multiple entries?

Yes, under 19 CFR 174.13(b), a single protest may cover multiple entries at the same port if the issues are substantially identical. This reduces per-entry filing costs significantly when Section 122 is the common issue.

What happens to my protest while the Federal Circuit appeal is pending?

CBP typically suspends protests on issues currently being litigated through "suspension orders" or by holding the protest in abeyance pending final judicial resolution. The protest preserves your rights without requiring CBP to rule on the merits until the appellate process is complete.

Do I need a customs broker or attorney to file a protest?

Importers can file protests directly through ACE, but licensed customs brokers and trade attorneys typically file on behalf of the importer to ensure procedural correctness and to handle communications with CBP. For Section 122 protests where the legal grounds reference CIT precedent, attorney involvement is common.

Will CBP automatically refund Section 122 duties if the Federal Circuit affirms?

Not automatically for non-plaintiffs. CBP may establish a refund process similar to the CAPE pathway used for IEEPA refunds, but that process would require a protest or reliquidation request as the underlying procedural mechanism for each entry. The protest filed now is what makes the refund retrievable later.

What if Section 122 expires on July 24, 2026 before the appeal resolves?

Tariff collection stops on July 25, 2026. The protest preservation strategy remains relevant for entries already filed, because the refund question on those duties is independent of whether the tariff continues. Protests filed before liquidation closes preserve the right to recovery.

How does this overlap with the IEEPA refund process?

The IEEPA refund process (CAPE Phase 1, launched April 20, 2026) was created after SCOTUS struck down IEEPA tariffs in February 2026. The Section 122 ruling is at an earlier procedural stage, no nationwide refund process has been created, and the appeal could still reverse the ruling. The closest analog right now is the standard protest pathway under 19 U.S.C. 1514.

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Don't Let the Protest Window Close Quietly

If your company paid Section 122 duties between February 24, 2026 and today, you have a refund opportunity that the May 7, 2026 CIT ruling brought into focus. The refund pathway runs through 19 U.S.C. 1514 protests on each affected entry, and each entry's window closes 180 days after liquidation. GingerControl's duty recovery service quantifies your Section 122 exposure, maps the liquidation calendar across your entries, and supports protest filings. Book a no-cost recovery consultation with Chen to start.

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Related Articles

• CIT Strikes Down Section 122 Tariffs (May 7, 2026): What the Ruling Actually Says
• How to File a Section 122 Tariff Protest with CBP
• When Do Section 122 Tariffs Expire?
• IEEPA Tariff Refund Guide

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References

[REF 1] 19 U.S.C. 1514, Protest against decisions of Customs Service Source: Cornell LII

[REF 2] 19 CFR Part 174, Protests Source: eCFR Part 174

[REF 3] Holland & Knight, U.S. Court of International Trade Invalidates the Administration's Section 122 Tariffs Source: Holland & Knight

[REF 4] CBP, Protests Overview Source: CBP Protests