IEEPA Tariff Refunds FAQ

CAPE Phase 1, 2, & 3 Importer FAQ Guide

Following the U.S. Supreme Court’s landmark ruling in Learning Resources, Inc. v. United States, which struck down the International Emergency Economic Powers Act (IEEPA) duties as unlawful, importers of record are eligible to recover their portion of the $166 billion in collected duties. U.S. Customs and Border Protection (CBP) is actively issuing these disbursements through its new electronic Consolidated Administration and Processing of Entries (CAPE) platform in the ACE portal. Because the recovery timeline, documentation rules, and eligibility criteria vary dramatically depending on whether your shipments are unliquidated, flagged for reconciliation, or finally liquidated, navigating the multi-phase rollout is critical to preventing lost revenue.
 
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CAPE Phase 1 FAQ: IEEPA Tariff Refund FAQ for Importers

Following the landmark ruling by the U.S. Supreme Court, importers who paid emergency border or reciprocal trade duties can now claim substantial financial recoveries. To secure your customs duties refund, your business must navigate a shifting regulatory landscape managed by U.S. Customs and Border Protection (CBP).

This guide breaks down exactly who is eligible, how the newly launched Consolidated Administration and Processing of Entries (CAPE) framework functions, and what tactical steps you need to take to protect your bottom line. CAPE Phase 1 launch date: April 20, 2026.

1. Landmark Court Decisions & Eligibility

Q: Can I claim a refund for all IEEPA tariffs I have paid?

A: Yes. Following the Supreme Court’s February 20, 2026 decision in Learning Resources v. United States, tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were ruled to have been unlawfully enacted. In direct response, the administration revoked the executive orders (EOs) that established these trade barriers.

If your business paid duties under any of the following directives, those funds are eligible for recovery:

• EO 14193 (Northern Border / Illicit Drugs)
• EO 14194 (Southern Border Measures)
• EO 14195 (PRC Synthetic Opioid Supply Chain)
• EO 14245 (Venezuelan Oil Imports)
• EO 14257 (Reciprocal Trade Deficit Tariffs)
• EO 14323 (Brazil)
• EO 14329 (Russian Federation)

Eligible Windows: You can claim refunds on all “fentanyl” tariffs paid since February 4, 2025, and all “reciprocal” tariffs paid since April 5, 2025, up through their termination on February 24, 2026, alongside the targeted country programs for Venezuela, Brazil, and Russia.

Q: Will I need to litigate in court to get my money back?

A: Not necessarily, but the situation is evolving. The U.S. Court of International Trade (CIT) ordered CBP to establish an administrative pathway to return the money without forcing every importer into a lawsuit. This resulted in the CBP CAPE refund process inside the Automated Commercial Environment (ACE).

However, the Department of Justice (DOJ) has appealed the broad scope of this remedy, arguing that non-plaintiffs should not receive automatic administrative relief.

• If no stay is granted: Administrative processing via CAPE continues normally during the appeal.
• If a stay is granted: CAPE processing could be frozen or delayed until higher courts rule.
• If reversed: Non-plaintiff importers may ultimately be forced to file formal lawsuits in the CIT to protect their right to a refund.

2. Navigating the CAPE Portal & Phase 1 Rules

Q: What exactly is CAPE Phase 1, and who can file?

A: CAPE (Consolidated Administration and Processing of Entries) is a mass-processing tool implemented inside the ACE portal. Instead of forcing you to amend imports line-by-line, it lets you upload a single batch file to claim thousands of entries at once.

Only the Importer of Record (IOR) who originally paid the duties has the legal standing to file a CAPE declaration. If you are a distributor, retailer, or end-consumer who absorbed these costs down the supply chain, you cannot file directly. You must coordinate with the IOR to secure your share of the recovery or have them formally route the refund to you.

Q: What are the strict timing parameters for Phase 1?

A: Phase 1—which launched on April 20, 2026—is strictly gated by an entry’s status:

1. Unliquidated Entries: Shipments that are still open and have not gone through final customs liquidation.
2. Recent Liquidations (The 80-Day Buffer): Entries that liquidated within the last 80 days. This timeline keeps them safely within CBP’s 90-day voluntary reliquidation window under 19 U.S.C. § 1501.

If your entries were liquidated more than 80 days ago, they are excluded from Phase 1. Later phases (such as Phase 2 for reconciliation entries and Phase 3 for finalized liquidations) are planned, but their availability for non-plaintiffs remains tied to the ongoing DOJ appeals.

Q: How long does it take to receive a refund check?

A: CBP states that valid, error-free CAPE claims will generally be processed and paid out within 60 to 90 days of file acceptance. Early trade data indicates that straightforward, clean entries are frequently paying out even faster—sometimes within a few weeks.

3. Step-by-Step Filing Preparation

To execute a flawless import tariff refund strategy, your compliance team should follow this precise sequence:

1. Secure ACE Portal Access

Prerequisite
Ensure your trade compliance team or licensed customs broker has an active, verified ACE Secure Data Portal account. Look for the newly deployed “CAPE” tab in your account dashboard.

2. Enroll in ACH Electronic Refunds

Critical Delay Prevention
CBP will not issue paper checks for these mass refunds. You must have your corporate bank details registered for Automated Clearing House (ACH) processing inside ACE. If this step is missing, CBP will validate your claim but hold the cash indefinitely.

3. Extract the ES-003 Report

Data Gathering
Run an Entry Summary Detail Report (ES-003) within ACE for the applicable 2025–2026 tariff windows. Export this data directly into Excel to isolate your target records.

4. Filter Chapter 99 Tariff Codes

Isolate Eligible Tariffs
Filter the HTSUS column specifically for IEEPA-related provisions: 9903.01.xx and 9903.02.xx. Further refine the data by country of origin at the 8-digit level to cross-reference against the revoked executive orders.

5. Build and Upload the CSV File

Submission
Create a clean .csv file containing only a single column of your validated 11-character entry numbers (maximum 9,999 entries per file). Upload this directly via the CAPE file upload tool.

4. Complex Entries & Pitfalls to Avoid

Q: Why are some CAPE refund declarations being rejected?

A: CBP runs a strict two-stage validation check: File Validation (checking for correct CSV formatting and authorized IOR matching) and Entry Validation (checking if the entry number actually contains IEEPA codes and fits the Phase 1 timeline).

Your filing will face delays or outright rejection if it involves complex variables that the Phase 1 automation cannot handle. Flag these high-risk categories for manual review:

Q: Can I file a Post Summary Correction (PSC) to get my refund?

A: No. CBP has explicitly stated that Post Summary Corrections are not the correct vehicle for obtaining IEEPA refunds. CAPE is the exclusive administrative mechanism.

Once your CAPE declaration is successfully processed, the system automatically strips away the illegal Chapter 99 provisions, recalculates your standard duties (including any normal trade relations or Section 301 China duties), and updates the entry version for reliquidation.

Warning: You cannot edit or cancel a CAPE declaration once it is uploaded. If you realize an entry required a standard data correction, that window closes the moment the CAPE file is submitted.

Q: Can a third party or customs broker receive my refund directly?

A: Yes, but it requires proactive setup. If you want a broker or a supply chain partner to receive the funds, you must complete a two-step sequence before hitting submit on CAPE:

1. File CBP Form 4811 (Notify Party Designation) inside the ACE Portal.
2. Ensure that the designated party’s specific IOR number is linked to each applicable entry summary.

If these designations are not established in the system prior to filing your CAPE declaration, the system will default payment strictly to the original IOR, and it cannot be altered post-submission.

5. Overlapping Trade Remedy Tariffs

Q: Does the IEEPA ruling impact other tariffs like Section 232 or 301?

A: Absolutely not. The Supreme Court’s decision was strictly focused on the statutory limits of IEEPA. All other active trade remedies remain fully enforceable, and enforcement is actively intensifying through 2026.

• Section 232 Tariffs: Duties on steel, aluminum, and their derivatives remain firmly in place. Furthermore, the framework has expanded significantly. Per the April 2, 2026 Presidential Proclamation, specific derivative metal imports face structured tariffs as high as 50%, evaluated against the full customs value of the goods rather than just the metal content. Section 232 actions have also expanded into strategic sectors like pharmaceuticals and critical minerals.
• Section 301 Tariffs: The sweeping tariffs on Chinese merchandise remain active. Furthermore, the USTR initiated twin Section 301 investigations regarding Structural Excess Capacity and Forced Labor. A broad wave of new or elevated Section 301 tariffs is widely expected to debut by late July 2026.

Q: What is the status of the Section 122 “Surcharge” Tariffs?

A: When the Supreme Court struck down the IEEPA duties in February 2026, the administration immediately turned to Section 122 of the Trade Act of 1974 to implement a temporary 10% global import surcharge under balance-of-payments authority.

The legal status of these Section 122 replacement tariffs is heavily contested:

• On May 7, 2026, the CIT ruled that the 10% surcharge was unlawful because a standard trade deficit does not legally equal a statutory “balance of payments deficit.”
• However, the CIT only issued an injunction for the specific plaintiffs in that case, not a nationwide block.
• On May 12, 2026, the Court of Appeals for the Federal Circuit (CAFC) granted the government an immediate temporary stay.

CAPE Phase 2 FAQ: Reconciliation and AD/CVD Tariff Refunds

With Phase 1 of the Consolidated Administration and Processing of Entries (CAPE) portal actively paying out standard claims, U.S. Customs and Border Protection (CBP) is expanding the system. Following testimony before the U.S. Court of International Trade (CIT), CAPE Phase 2 launch date: June 29, 2026.

This phase targets more complex transactions—specifically reconciliation entries and entries involving trade remedy friction—unlocking an estimated $28.7 billion in potential recoveries. This guide covers the operational rules, strict eligibility criteria, and preparation steps required to secure your reconciliation tariff refund.

1. Scope, Deadlines & Eligibility

Q: What exactly does CAPE Phase 2 cover?

A: CAPE Phase 2 expands the automated CBP CAPE refund process to handle two highly complex, data-heavy import categories that were blocked during Phase 1:

1. Reconciliation Entries (Type 09): Entries where complex variables like value, classification, or processing assists were flagged at the time of import to be finalized at a later date.
2. Antidumping and Countervailing Duty (AD/CVD) Entries: Shipments that were subject to both the invalid IEEPA emergency tariffs and separate Department of Commerce unfair trade investigations.

Q: What are the “Dual Conditions” for Phase 2 eligibility?

A: To successfully process a Type 09 entry in Phase 2, your filing must satisfy two strict criteria simultaneously:

• Condition 1: The entry must be unliquidated OR liquidated within 80 days of your Phase 2 filing date.
• Condition 2: The formal, underlying Reconciliation Summary (Type 09) must not have been filed yet.

If you have already filed the final reconciliation summary and it liquidated more than 80 days ago, the automated logic in Phase 2 will flag it as an Entry Validation failure.

The Legacy Gap: Why Phase 2 will not capture all reconciliation entries

A critical trap exists for historical imports. Entries filed during the early months of the IEEPA tariff period (e.g., February through May 2025) that moved through a standard 314-day liquidation cycle have already passed the 80-day post-liquidation window.

Because they liquidated more than 80 days before the June 29 launch, these legacy entries are completely excluded from Phase 2. Importers cannot rely on Phase 2 to recover duties on these early shipments and must shift to alternative legal remedies.

2. Navigating the Phase 2 Processing Mechanics

Q: Will Phase 2 filings take longer to pay out than Phase 1?

A: CBP expects valid, error-free Phase 2 declarations to follow a 60 to 90-day processing window from the date of file acceptance. However, because Type 09 and AD/CVD entries carry high compliance risks, automated validation will be paired with heightened agency scrutiny. Expect data matching errors to occur more frequently than they did in Phase 1.

Q: How does the system handle overlapping AD/CVD instructions?

A: For entries tied to active AD/CVD cases, ACE will perform a secondary verification check. If the Department of Commerce has issued final liquidation instructions and the entry is pending finalization under 19 U.S.C. § 1504(d), CAPE Phase 2 will strip the invalid IEEPA Chapter 99 line, recalculate the base duty, and seamlessly pass the entry to the standard AD/CVD liquidation queue.

3. Step-by-Step Data Preparation for Phase 2

To ensure your mass-upload does not face immediate rejection, your trade compliance team or licensed customs broker must execute this precise data-cleansing sequence before June 29:

1. Pull the ES-022 Dashboard Report

Data Extraction
Access your ACE Secure Data Portal and run the updated ES-022 report alongside your standard entry data. This serves as your primary diagnostic dashboard to isolate open Type 09 entries.

2. Isolate Unfiled Type 09 Flagged Summaries

Data Cleansing
Filter your data to isolate entries that contain IEEPA tariff codes (9903.01.xx and 9903.02.xx) AND carry an active, unfiled reconciliation flag. Ensure these entries are still open or sit safely within the 80-day liquidation window.

3. Execute Filer Code Pre-Matching

Validation Check
Verify that the 3-digit prefix of your filing customs broker’s ACE filer code matches the alphanumeric data on the underlying entry summaries. If the filer codes do not align perfectly, the ACE portal 447958reject the entire upload.

4. Build the Comma-Separated Values

File Formatting
Download the official CAPE CSV upload template. Input your validated 11-character entry numbers into a single column (maximum 9,999 entries per file).

5. Apply the Zero-Saver Rule

Syntax Protection
If any of your entry numbers begin with a zero, you must manually insert an apostrophe (‘) directly before the zero in Excel (e.g., ‘000XXXXXXXX) before saving as a .csv. Failure to do this will cause Excel to drop the leading zero, leading to immediate validation failure.

4. Avoiding Common Mistakes & Validation Failures

Q: What causes a Phase 2 declaration to fail File-Level Validation?

A: A file-level rejection happens instantly upon upload, blocking the entire document. The most common causes are formatting errors within the CSV (such as missing the leading zero-saver apostrophe), exceeding the 9,999 entry limit, or attempting to submit entries where your broker code does not match the historical electronic file.

Q: What causes an individual entry to fail Entry-Level Validation?

A: If your file passes the initial check, ACE evaluates each entry number line-by-line. An entry will be single out and rejected if:

• It does not contain an eligible IEEPA Chapter 99 HTSUS line item.
• It is an entry number that was already submitted and accepted in a previous Phase 1 claim.
• It is a legacy reconciliation entry that has aged past the 80-day post-liquidation threshold.

Crucial Warning: You cannot edit, amend, or recall a CAPE declaration once it is uploaded. If an entry fails validation or requires standard data adjustments, you cannot use a Post Summary Correction (PSC). Any post-liquidation adjustments must be handled via a formal administrative protest or prior disclosure.

5. Ongoing Litigation and Shifting Policy Barriers

Q: Do I need to file a lawsuit to claim my Phase 2 refunds?

A: No. Like Phase 1, Phase 2 is an automated administrative tool open to all valid Importers of Record, regardless of whether your business was a plaintiff in the original Learning Resources litigation.

Q: Why should I consider a parallel protective legal strategy?

A: While Phase 2 is open to non-plaintiffs, the Department of Justice (DOJ) is actively appealing the nationwide scope of these administrative remedies. Furthermore, CBP has explicitly stated that Phase 3 (targeting entries liquidated more than 80 days ago) will be restricted exclusively to importers with active lawsuits before the CIT.

If your business has substantial capital tied up in legacy 2025 reconciliation entries that missed the 80-day Phase 2 window, you should actively consider filing a protective Section 1581(i) lawsuit at the CIT. Taking this step protects your independent right to a refund, ensuring your historical claims remain viable even if the government wins its pending appeals.

CAPE Phase 3 FAQ: Legacy and Finally Liquidated Tariff Refunds

The rollout of the Consolidated Administration and Processing of Entries (CAPE) framework has reached its most contentious stage. While Phases 1 and 2 provided open administrative pathways for recent imports, CAPE Phase 3 is targeted for launch in late July 2026.

This phase is specifically designed to handle “finally liquidated” entries—those that aged out of standard administrative modification windows. However, unlike previous rollouts, Phase 3 introduces severe legal restrictions and a strict mandate for active litigation. This guide breaks down the high-stakes rules, specific eligibility hurdles, and protective measures required to secure your legacy customs duties refund.

1. Scope, Deadlines & The Litigation Mandate

Q: What exactly does CAPE Phase 3 cover?

A: CAPE Phase 3 is the cleanup mechanism for finally liquidated entries—meaning any eligible import that was liquidated more than 80 days ago and sits outside standard administrative adjustment windows (such as the 90-day voluntary reliquidation window under 19 U.S.C. § 1501). This includes the vast majority of historical IEEPA “fentanyl” and “reciprocal” tariffs paid throughout 2025.

Q: Is Phase 3 open to all importers like Phases 1 and 2?

A: No. This is the most critical distinction of the Phase 3 framework. The Department of Justice (DOJ) and U.S. Customs and Border Protection (CBP) have established a strict dual-track system for legacy entries.

The automated processing logic inside the ACE portal for Phase 3 will be restricted exclusively to importers who have filed individual lawsuits (protests/summons) before the U.S. Court of International Trade (CIT). If your business is a non-litigant, the system will flag your Importer of Record (IOR) number and automatically block your Phase 3 file upload.

Q: Why is the government restricting Phase 3 access?

A: Although the Supreme Court ruled in Learning Resources v. United States that the underlying IEEPA tariffs were unlawful, the current dispute is entirely procedural. The DOJ is actively appealing the nationwide scope of universal administrative refunds. By restricting Phase 3 to active litigants, the government aims to cap its financial exposure while the federal appellate courts determine whether non-plaintiffs have a statutory right to automated legacy recoveries.

2. The Strategic Litigation Matrix

To safely navigate Phase 3, your trade compliance and legal teams must understand where your historical entries sit on the regulatory timeline:

3. Step-by-Step Preparation for Phase 3 Onboarding

Because Phase 3 requires coordinating data across your customs broker, internal compliance team, and external trade counsel, you must execute this sequence immediately to ensure your firm is on the master approval list:

1. Isolate Aged-Out Historic Shipments

Data Identification
Run a comprehensive historical entry report in the ACE portal. Filter specifically for IEEPA Chapter 99 provisions (9903.01.xx and 9903.02.xx) where the formal liquidation date exceeds 80 days from the current date.

2. Audit Active Protests and Summonses

Legal Review
Cross-reference your list of legacy entries against your active legal files. Identify which entries are currently protected by a timely filed 180-day protest or an active CIT summons.

3. Onboard with Trade Counsel for Section 1581(i)

Litigation Bridge
For any high-value entries where the 180-day protest window has completely expired, engage specialized trade counsel to draft and file a protective lawsuit under 28 U.S.C. § 1581(i).

4. Verify IOR-to-Docket Matching

System Sync
Ensure the exact legal entity name and corporate IOR number used on your court filings match your ACE account precisely. Any discrepancy between court dockets and ACE profiles will result in a Phase 3 validation rejection.

5. Confirm ACH Linkage for Final Payouts

Electronic Readiness
Verify that your ACH refund enrollment remains active inside ACE. Legacy payouts under Phase 3 will undergo rigorous manual audit queues before electronic disbursement, making pre-validated banking details mandatory.

4. Avoiding Complex Pitfalls & Data Errors

Q: Will Post Summary Corrections (PSC) work for Phase 3 entries?

A: Absolutely not. PSCs are strictly prohibited once an entry has liquidated. For legacy entries, the PSC window closed months ago. CAPE Phase 3 paired with an active court order is the exclusive vehicle to trigger these legacy adjustments.

Q: What happens if my Phase 3 claim is rejected?

A: If an entry fails Phase 3 validation, it is typically because the automated system could not find a matching court docket or active protest linked to that specific entry number. Because you cannot edit a CAPE submission after filing, a rejection means your recovery must be fought out manually through the CIT litigation track rather than the automated ACE portal.

Critical Warning: Many legacy entries contain missing or incorrectly reported Chapter 99 data due to rapid regulatory shifts in 2025. If your original filing lacked perfect HTSUS alignment, an automated Phase 3 file will fail. Your trade counsel must explicitly include these data discrepancies within your CIT complaint to preserve your right to manual amendment.

3. Overlapping Replacement Tariffs & Multi-Year Exposure

Q: Can I include Section 122 “Surcharge” Tariffs in my Phase 3 filing?

A: No. Phase 3 is strictly limited to the invalidated IEEPA emergency tariffs. The temporary 10% global import surcharge imposed under Section 122 of the Trade Act of 1974 is subject to a completely separate, ongoing legal battle at the Court of Appeals for the Federal Circuit (CAFC).

While CBP is actively collecting the Section 122 surcharge right now, those payments cannot be mixed into your CAPE Phase 3 CSV uploads. They must be tracked independently by your compliance team as a secondary wave of potential future exposure.

Q: What is the long-term risk of failing to litigate before late July?

A: The risk is absolute forfeiture. If the CAFC or Supreme Court ultimately rules in favor of the government’s narrow interpretation of administrative remedies, CBP will have no legal authority to issue refunds to non-plaintiffs for finally liquidated entries. Failing to establish an active court presence before Phase 3 launches means permanently walking away from your share of the billions in recoverable legacy duties.

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