Over 330,000 U.S. importers have paid an estimated $175 billion in duties under the International Emergency Economic Powers Act (IEEPA) that the Supreme Court has since ruled unconstitutional. Recovering that capital is a nuanced, multi-step process involving the new Customs and Border Protection (CBP) CAPE platform, subject to an 80-day liquidation window and 180-day protest deadline, and conditional on the federal government’s pending appeal of the Court of International Trade (CIT) refund order.
This article is a living resource for importers navigating the tariff refund landscape. It covers material developments from the Supreme Court’s February 2026 ruling through CBP’s phased rollout of its CAPE platform. It’ll be updated regularly as new guidance, executive actions, and legal developments emerge.
Key Takeaways
- On February 20, 2026, the Supreme Court ruled 6-3 in Learning Resources, Inc. v. Trump [consolidated with Trump v. V.O.S. Selections, Inc.] that tariffs imposed under the IEEPA are unconstitutional.
- Over 330,000 U.S. importers paid an estimated $175 billion in IEEPA-related duties between February 4, 2025, and February 24, 2026.
- CBP launched its Consolidated Administration and Processing of Entries (CAPE) platform on April 20, 2026, to process Phase 1 of refund claims.
- Phase 1 covers approximately 63% of eligible entries, with the remaining 37% (e.g., drawback, reconciliation, AD/CVD, and similar categories) to be addressed in future phases.
- Liquidated entries are subject to the 180-day protest window under 19 U.S.C. § 1514, with statutory interest accruing on refunds from the date of original deposit under § 1505(c).
- The federal government’s deadline to appeal the underlying CIT refund order extends to approximately June 7, 2026.
Recent Developments
April 29 | CBP Reports Operational Data for Phase 1
CBP Executive Director of Trade Programs, Brandon Lord, reported the latest CAPE numbers to the CIT. As of Sunday, April 26, importers had filed 75,306 CAPE Declarations. CBP designated 47,315 as properly filed.
- 11,222,927 entries successfully passed file validations.
- Approximately 21% of entries were submitted to CAPE for processing.
- File validation rejected approximately 19% of entries (2,124,394).
- Approximately 3% of entries reached the refund stage.
- The system saw a single 18-minute outage on April 20, the day of launch, but has otherwise run stably.
CBP will share another progress report with the CIT on May 12.
April 28 | CIT Closed-Door Meeting Surfaces UX Issues
CIT Judge Richard K. Eaton convened a closed-door conference on April 28 to review the early Phase 1 rollout. Participants flagged several lingering issues:
- Some users couldn’t access the Automated Commercial Environment (ACE) Secure Data Portal because of required username and password resets.
- CAPE training events filled up, leaving some filers without a slot.
- Confusion remains about which importers should file CAPE Declarations versus rely on their broker.
Judge Eaton ordered Lord to file a follow-up progress report on May 12, 2026.
April 20 | CAPE Goes Live for Phase 1
CBP launched CAPE Phase 1 at 8:00 AM EDT on April 20, 2026. Importers and authorized customs brokers can now submit CAPE Declarations through the ACE Secure Data Portal, per CBP guidance. Phase 1 accepts:
- Entries that are still unliquidated, or
- entries that liquidated within 80 days of their CAPE Declaration submission date.
Phase 1 covers approximately 63% of eligible IEEPA entries. CBP plans to address the remaining 37% in future phases without an announced timeline. Each CAPE Declaration accepts up to 9,999 entries, so importers with larger portfolios must file in multiple batches.
April 8 | Appeal Deadline Is Reset to June 7
The U.S. Court of International Trade reissued its IEEPA refund order after the court selected Euro-Notions Florida as the new lead plaintiff. The original lead plaintiff filed a voluntary notice of dismissal on April 6. That transition reset the 60-day window for a potential government appeal. The new deadline extends to approximately June 7, 2026.
Most practitioners expect an appeal once CAPE is operational and the CIT lifts its current suspension of the underlying order. The anticipated argument draws on the Supreme Court’s 2025 ruling in Trump v. CASA, Inc., which limited the availability of nationwide injunctions. Government attorneys will likely contend that the CIT can’t extend universal relief to importers who didn’t file suit.
From the Supreme Court’s Ruling to the Development of CAPE
The Supreme Court’s Landmark Ruling
On February 20, 2026, the U.S. Supreme Court ruled that IEEPA doesn’t authorize the President to impose tariffs absent clear congressional authorization. The 6-3 decision came in Learning Resources, Inc. v. Trump, consolidated with Trump v. V.O.S. Selections, Inc. The decision affirmed an earlier ruling from the CIT, which the Federal Circuit had upheld before the case reached the Supreme Court.
The ruling invalidated all IEEPA-based tariffs in scope:
- Reciprocal tariffs imposed in April 2025,
- fentanyl-related tariffs on China, Canada, and Mexico,
- and the additional 40% tariff on Brazil introduced in August 2025.
The Court held that IEEPA permits the President to “regulate” imports during a declared national emergency. But the statute doesn’t clearly authorize duties of “significant economic and political magnitude.” The justices didn’t provide guidance on retroactive remedies, leaving that question to lower courts and CBP.
The CIT Refund Order
On March 4, 2026, CIT Judge Richard K. Eaton ordered CBP to liquidate all unliquidated IEEPA entries without assessing IEEPA duties. The order also required CBP to reliquidate any liquidated entries that hadn’t reached final liquidation. Together, these directives amounted to a universal refund mandate.
CBP requested a 45-day window to build the systems needed to process the refunds. The CIT granted the request on March 6 and suspended immediate compliance with the underlying order. CBP filed three progress reports in March (March 12, March 19, and March 31) tracking the development of the new system.
On March 20, the CIT broadened the order. The amended version covered additional Brazil and India IEEPA tariffs not included in the original Supreme Court ruling.
The Executive Response
Within hours of the Supreme Court ruling, the White House issued an executive order terminating all IEEPA tariff actions. The same day, the White House published a proclamation imposing a 10% global tariff under Section 122 of the Trade Act of 1974. The new surcharge took effect on February 24, 2026.
How CBP Built Its CAPE Platform
CBP designed the CAPE platform to process refunds at scale rather than on an entry-by-entry basis. CAPE lives inside CBP’s existing ACE Secure Data Portal. Filers upload a comma-separated values (CSV) file listing entry summary numbers, and ACE then validates the file format and the individual entries.
CBP built CAPE in four components:
- A claim portal for CSV upload,
- a mass duty recalculation engine,
- a review, liquidation, and reliquidation module,
- and a refund disbursement system.
CBP completed the primary development of these four components in mid-April and ran performance testing ahead of the April 20 launch.
Inside Phase 1: How Refunds Are Processed
Phase 1 covers approximately 63% of eligible IEEPA entries. Here’s how it works.
Who Can File
Only the importer of record (IOR), or a licensed customs broker filing on the IOR’s behalf, can file a CAPE Declaration. The IOR’s account number must match the IOR number on the submitted entry summary. A single broker can include up to 9,999 entries on behalf of multiple IORs in one declaration. Importers can also authorize multiple brokers to file on their behalf.
What Phase 1 Covers [and Excludes]
Phase 1 processes refund claims for entries that meet either of two criteria:
- Still unliquidated, or
- liquidated within 80 days of the CAPE Declaration submission date.
Phase 1 also processes entries with a liquidation status of suspended, extended, or under review. Those entries keep their liquidation status until resolved, with refunds issued at liquidation.
Phase 1 doesn’t process the following entries, per CBP’s Cargo Systems Messaging Service (CSMS) bulletin from April 13:
- Entries flagged for reconciliation, including Type 09 Reconciliation Summary entries,
- entries subject to a drawback claim, including Type 47 Drawback entries,
- entries with an open protest,
- entries not filed in ACE, or entries lacking a liquidation status in ACE,
- and entries subject to AD or CVD orders for which the Department of Commerce has issued liquidation instructions, but liquidation is pending (approximately 166,000 entries).
CAPE also won’t process any entry without at least one IEEPA-related Harmonized Tariff Schedule (HTSUS) Chapter 99 code.
Filing Requirements
To file a CAPE Declaration, an importer or broker needs an active ACE Secure Data Portal account with the Importer sub-account configured for refunds. The account also needs Automated Clearing House (ACH) information specifically configured for tariff refunds. ACH enrollment for duty payments alone won’t work. CBP will hold funds indefinitely for claimants who do not have valid ACH refund information on file.
The CAPE Declaration itself is a CSV file listing entry numbers. Cell A1 must contain the exact text “Entry Number,” with entries beginning at A2. Each declaration handles up to 9,999 entry numbers, and entries can’t repeat within a declaration. CAPE rejects non-CSV formats, including Microsoft Excel (e.g., XLSX and XLS).
Validation, Acceptance, and Dispursement
ACE runs two rounds of validation. Round one validates the CAPE Declaration file itself. Round two validates the individual entries listed in the file. File validation rejected approximately 19% of entries in the first week of operation, per CBP’s April 27 court filing.
Common reasons for rejection include incorrect HTSUS coding, IOR mismatches, entries outside the Phase 1 eligibility window, and CSV formatting errors. Filers can correct rejected entries and resubmit them on a subsequent CAPE Declaration.
For accepted entries, ACE removes the dutiable IEEPA HTSUS Chapter 99 codes, recalculates the entry under remaining duty programs, and proceeds with liquidation or reliquidation. Rather than paying entry by entry, CBP consolidates refunds by IOR and liquidation date. All refunds go via ACH.
CBP has confirmed a target processing window of 60 to 90 days from CAPE Declaration acceptance to refund disbursement, subject to compliance review. The agency will also offset any outstanding debts an importer owes the U.S. government against the refund balance before disbursement, per 19 C.F.R. § 159.1.
Beyond Phase 1: Entries Not Yet Eligible
About 37% of eligible IEEPA entries fall outside Phase 1. CBP has identified the following categories for future phases:
- Drawback entries,
- reconciliation entries, including Type 09,
- entries under open protest,
- entries with AD or CVD orders pending liquidation,
- foreign trade zone entries,
- warehouse entries (i.e., refunds issued after liquidation),
- and liquidated entries that require reliquidation without IEEPA duties.
CBP hasn’t announced a timeline for future phases. For importers with entries in these categories, refund recovery may take significantly longer than the Phase 1 target. Some categories, like drawback and reconciliation, have alternative procedural pathways that operate independently of CAPE.
For finally liquidated entries, CIT Judge Eaton’s March 27 amendment requires CBP to reliquidate without applying IEEPA duties. CBP plans to expand CAPE to handle these reliquidations in a future phase.
Other Factors Importers Should Monitor
The 180-Day Protest Window
The 180-day protest window under 19 U.S.C. § 1514 still applies to liquidated entries. CAPE doesn’t pause the clock.
Importers have 180 days from the date of liquidation to protest a tariff assessment. For IEEPA entries that were liquidated before the Supreme Court ruling, that window is still counting down. Missing it can result in the refund being denied for those specific entries.
If your most recent liquidations happened in late 2025 or early 2026, the window matters now. Working with a qualified customs broker or counsel to confirm liquidation dates and remaining time is the practical next step.
Filing a protest doesn’t preclude the pursuit of refunds through CAPE. Several customs and trade advisory firms continue to recommend filing protests on liquidated entries, regardless of CAPE participation, to preserve refund eligibility.
Interest Accrual on Refund Balances
Interest accrues on refunds from the date of original deposit, per 19 U.S.C. § 1505(c). The amount you’re owed isn’t shrinking while you wait. Accrued interest works in your favor at the IRS quarterly rate, which has run approximately 6 to 7 percent annualized in recent quarters.
Over an 18- to 24-month processing cycle, accrued interest in a high-rate environment can add a meaningful amount to the eventual payout. The catch: the interest accrues inside CBP’s system, not in your operating account. Capital locked in CBP’s queue can’t fund working capital, inventory, or growth.
For most importers, the math of “more dollars eventually” doesn’t outweigh the reality of “working capital constraints now.”
The Government’s Pending Appeal
The federal government has the right to appeal the CIT’s underlying refund order to the Federal Circuit. The original 60-day appeal window had a deadline of approximately May 6, 2026. The deadline was reset to approximately June 7, 2026, after the CIT case transitioned to Euro-Notions Florida as the new lead plaintiff in early April.
Most practitioners expect an appeal. The anticipated argument draws on the Supreme Court’s 2025 ruling in Trump v. CASA, Inc., which limited the availability of nationwide injunctions. Government attorneys will likely argue that the CIT can’t extend universal relief to importers who didn’t file suit.
Three scenarios matter:
- Appeal Filed With Stay Granted. CBP refund disbursements may be paused pending a resolution by the Federal Circuit.
- Appeal Succeeds in Narrowing the Order. Importers who didn’t file suit at the CIT may have to pursue alternative recovery pathways.
- Appeal Fails. Refunds proceed as currently structured with CAPE.
The June 7 deadline is one of the most important regulatory milestones for any importer with a pending claim.
Tariffs That Replaced IEEPA
The Supreme Court ruling ended IEEPA as a basis for tariff authority, but it didn’t end U.S. tariff exposure. The Trump administration moved aggressively to backfill IEEPA tariffs through other statutory mechanisms.
Section 122: The 10-15% Global Tariff
Section 122 of the Trade Act of 1974 lets the President impose temporary import surcharges to address “fundamental international payments problems.” The current Section 122 surcharge took effect on February 24, 2026, at 10% on most imports. Annexes I and II of the original White House proclamation list exemptions. The exempt categories include certain critical minerals, energy products, and United States-Mexico-Canada Agreement (USMCA)-compliant Canadian and Mexican goods.
The President announced his intent to raise the rate to 15% on February 21, 2026. The rate has stayed at 10% as of late April. Section 122 caps the rate at 15% and limits the duration to 150 days unless Congress extends it. The current surcharge expires July 24, 2026.
Section 232: Steel, Aluminum, Copper, and Pharmaceuticals
On April 2, 2026, the White House signed a proclamation modifying Section 232 tariffs on steel, aluminum, and copper. Effective April 6, the United States imposes a 25% tariff on certain derivative products. A flat 50% tariff applies to many steel, aluminum, and copper articles. Reduced rates apply to U.K.-origin goods (25% rather than 50%) and to products manufactured outside the United States from U.S.-origin metals (10%).
A separate Section 232 executive order, signed the same day, will impose tariffs on patented pharmaceutical products. The duties take effect 120 days after signing for larger companies and 180 days for smaller companies. Patented drugs from companies without most-favored-nation pricing deals face a 100% tariff. Reduced rates apply to companies that reshore production to the United States.
Section 301: New Investigations Underway
Section 301 tariffs on Chinese imports remain in full effect. On March 11, 2026, the Office of the U.S. Trade Representative announced Section 301 investigations targeting 16 trading partners on the grounds of structural excess capacity. A second wave of investigations announced on March 12 targeted more than 60 trading partners. The basis: alleged failures to ban imports produced with forced labor.
Section 301 investigations historically take 6 to 18 months from announcement to tariff implementation. The current Section 122 surcharge expires before most of these investigations would conclude. That timing suggests the administration plans to use Section 301 as the next durable tariff vehicle.
Recovery of IEEPA refunds occurs against a backdrop of ongoing and likely expanding tariff exposure under various statutes. Importers should plan for ongoing compliance and cost-modeling work, not a return to a pre-tariff status quo.
Common Filing Mistakes
Early CAPE filing data shows a 19% entry rejection rate. A few patterns drive most rejections.
- ACH Enrollment Is Misconfigured. ACH enrollment in ACE for duty payments isn’t the same as ACH enrollment for refunds. CBP will hold refunds indefinitely for any claimants who don’t properly set up their ACH enrollment.
- Formatting Errors In the CAPE Declaration CSV File. Cell A1 must contain the exact text “Entry Number.” Entries begin at A2. Non-CSV files, including Microsoft Excel (e.g., XLSX and XLS), are rejected. Each declaration caps at 9,999 entries, and entries mustn’t repeat within a single declaration.
- IOR Number Mismatches. The IOR number on your account must match the IOR number on the submitted entries. ACE accounts may list an IOR number different from those previously used in entries.
- Multi-Broker Coordination Gaps. If multiple customer brokers were used during the affected period, each broker must file a separate CAPE Declaration for the entries they handled. One broker can’t file a CAPE Declaration for multiple brokers’ entries.
- Pre-Existing Entry Errors. Customs brokers typically have an average error rate of 20% on entries. Error examples include misclassified HTSUS codes, valuation issues, and country-of-origin mistakes. Submitting a CAPE Declaration for entries that haven’t been audited may trigger complete or partial entry rejections and further delays.
- Missing the 180-Day Protest Window. For liquidated entries within the protest window, filing a protest is what preserves importers’ eligibility for those entries [regardless of their CAPE participation]. Missing the protest window risks foreclosing the opportunity for recovery.
A pre-filing audit by a qualified customs broker or trade advisor is an effective defense against most of these mistakes.
What to Do Next
For an importer with potential IEEPA tariff exposure, the practical sequence is:
- Inventory Eligible Entries. Pull entry summary data from ACE for the eligible period (February 4, 2025, through February 24, 2026). Focus on the entries with HTSUS codes in the 9903.01 and 9903.02 families.
- Confirm ACE Portal Access and ACH Refund Enrollment. All refunds are processed via ACH, and ACH enrollment must be configured specifically for refunds, not duty payments.
- Audit Entries for Errors. Misclassifications, valuation issues, and country-of-origin mistakes can derail otherwise valid refund claims.
- Monitor Liquidation Dates. Liquidations completed in late 2025 or early 2026 may be approaching their 180-day protest deadlines. Address those first.
- File, Fund, or File and Fund. These are the services 1st Capital Financial specializes in.
- Watch the Appeal Deadline. The federal government has until about June 7, 2026, to submit an appeal to the CIT’s refund order.
For importers looking to eliminate friction, risk, and wait time, 1st Capital Financial offers end-to-end IEEPA Refund Services. Importers who file and fund their IEEPA tariff refunds with the company can access up to 90% of the value of their claim within 2 to 3 weeks. There are no costs or obligations to get started.
FAQs About IEEPA Tariff Refund Updates
What happens if the federal government appeals the refund order successfully?
If the Federal Circuit grants a stay pending appeal, CBP refund disbursements may pause until the appeal resolves. If the appeal narrows the order to plaintiffs only, importers who didn’t file suit at the CIT may need to pursue alternative recovery pathways. The anticipated theory draws on Trump v. CASA, Inc. Filing a CAPE Declaration now doesn’t preclude pursuing those alternatives later.
What if my CAPE Declaration is rejected during validation?
Rejected entries may be corrected and resubmitted on a new CAPE Declaration. CBP’s validation process flags errors at the file and entry levels (e.g., CSV formatting issues, ineligible entry types, and IOR mismatches). About 19% of entries submitted during the first week of operation were rejected. Rejections don’t foreclose recovery.
Can my refund be reduced by other debts owed to the U.S. government?
Yes, under 19 C.F.R. § 159.1, CBP subtracts any debts importers owe the U.S. government from their refund balance before disbursement. CBP will also net under- and over-payments across all entries on importers’ declarations. Importers with outstanding CBP liabilities, IRS obligations, or other federal debts should anticipate offsets.
What if I used multiple customs brokers for my entries during the eligible period?
Each customs broker must file a separate CAPE Declaration for the entries they handled. One broker cannot file a CAPE Declaration for multiple brokers’ entries. Importers must coordinate their filing schedules with all involved brokers, including granting access to and authorization for their ACE portals. However, importers can file their own CAPE Declarations for entries they filed themselves.
Should I wait for the government’s appeal deadline before filing?
In most cases, no. Filing during the suspension period preserves importers’ position in CBP’s processing queue. Phase 1 of the CAPE system is also live, and waiting risks missing the 80-day liquidation window and 180-day protest deadline.
Conclusion
This article is updated regularly. Be sure to bookmark the page and check the Recent Developments section at the top for the most up-to-date information. New resources and tools will be released each week. To speak with a member of The 1st Capital Team, submit a contact form or book a call today.
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