The Court of International Trade (CIT) has ordered U.S. Customs and Border Protection (CBP) to refund IEEPA duties—triggering one of the largest refund exercises the agency has ever faced.
CBP has made it clear it cannot execute that order at scale using its current processes, pointing to more than 53 million IEEPA-affected entries across roughly 330,000 U.S. importers of record.
To meet that obligation, CBP has launched CAPE (Consolidated Administration and Processing of Entries)—an initiative to build and deploy new ACE-based functionality to process refunds in bulk. The court has paused immediate compliance while that capability is developed.
In this blog, we’ll examine how CAPE is being built, what it means for refund timing, and how importers can plan around its phased rollout.
What CAPE will do (and won’t)
The court has made clear refunds are owed, but CBP still has to build the systems to deliver them at scale. CAPE provides that framework: a four-stage administrative pipeline—Claim Portal, Mass Processing, Review and (Re)liquidation, and Refund—focused on execution rather than eligibility.
In practice, CAPE will only process entries submitted by importers of record (or their brokers acting on their behalf). It will not automatically identify IEEPA-affected entries or fix missed or late filings.
- Claim Portal (submit): Importers or brokers upload a CSV list of affected entries as a declaration for refund.
- Mass Processing (validate and recalculate): The system validates files, strips IEEPA Chapter 99 lines, and recalculates duties.
- Review and (Re)liquidation (schedule): Entries are scheduled for liquidation or reliquidation.
- Refund (pay): CAPE consolidates entries by importer of record and liquidation date, then issues electronic payments.
In short, CAPE will not “pull” refunds for you. It will process what you submit, and only once the system is ready to do so.
Where CAPE stands today
CBP continues to make steady progress building CAPE:
| CBP Progress Milestones | Claim Portal | Mass Processing | Review & (Re)Liquidation | Refund |
|---|---|---|---|---|
| March 11, 2026 | 70% | 40% | 80% | 60% |
| March 19, 2026 | 73% | 45% | 80% | 63% |
| March 31, 2026 | 85% | 60% | 80% | 75% |
The CIT has continued to suspend its order as development progresses. At the same time, the scope of eligible refunds is widening. On March 20, 2026, the court confirmed that IEEPA duties on Brazil and India are also covered, expanding the pool of entries CAPE will ultimately need to process.
Strategy and timing risk: how refunds will actually move
The court has confirmed that refunds are owed, regardless of liquidation status. What remains unresolved is how, and how quickly, CBP can carry that out. That gap between clear legal entitlement and unfinished execution is where U.S. importers need to stay vigilant.
CBP has now confirmed that CAPE Phase 1 will not process finally liquidated entries. To meet deployment timelines, Phase 1 is limited to unliquidated entries and those still within CBP’s 90‑day voluntary reliquidation window. CBP has said those finally liquidated entries will be handled in a later phase, and Phase 1 is expected to reach roughly 63% of IEEPA‑affected entries.
In short, the court’s order is broader than what CAPE can handle right now. Phase 1 moves refunds for unliquidated entries and those within CBP’s established 90‑day reliquidation window and recalculates suspended/extended/under‑review and warehouse entries for later payment.
Timing adds another layer of risk. Judge Eaton continues to suspend immediate compliance, and a government appeal remains possible. If an appeal is filed by the May 3, 2026 deadline, timelines could extend significantly while additional entries continue to liquidate.
The takeaway is sequencing: move Phase 1 entries through CAPE and closely monitor the rest. Entries that are outside Phase 1 because of liquidation status, complexity, or timing may warrant targeted protective steps. Some complex entry types are excluded or paid later, which pushes work, and risk, back to the importer. So, keep tracking those entries and be ready to protect refunds as needed.
Action checklist for importers
1. Start with visibility
Organize IEEPA-affected entries by status and liquidation date, not to decide whether refunds are owed, but to understand how and when each group is most likely to be processed. This turns CAPE from an assumed solution into a calendar-driven execution plan.
2. Next, prepare for CAPE declarations
The Claim Portal will be CSV-based, and files that fail validation will not move forward. Cleaning entry data, including entry numbers, importer-of-record details, proof of IEEPA Chapter 99 lines, and payment history, reduces the risk that eligible refunds stall on avoidable technical issues once the system goes live.
3. In parallel, confirm refund mechanics
CAPE will issue consolidated electronic payments by liquidation or reliquidation date and importer of record (or a Form 4811 designee). Verify ACH details and payee designations in ACE now to avoid cash delays later.
4. Finally, reevaluate plans to protest
Courts have recognized that protesting IEEPA duties can be ineffective, since CBP has no authority to decide whether the tariffs were lawful in the first place, and CBP has stated Phase 1 will not accept entries covered by an open protest.
Bottom line
The court has made clear that IEEPA refunds are owed, including for finally liquidated entries. CAPE is CBP’s path to executing those refunds, but it will roll out in stages.
Phase 1 is designed to move refunds quickly for unliquidated entries and those still within CBP’s voluntary reliquidation window. A significant portion of entries, such as finally liquidated, reconciliation, drawback, and other complex cases, are intentionally deferred. Others, previously out of scope for Phase 1, are now included with liquidation limitations.
CAPE will accept entries in “Suspended,” “Extended,” or “Under Review” status, as well as AD/CVD entries whose liquidation is suspended and warehouse/warehouse‑withdrawal entries. It will remove the IEEPA HTS lines and recalculate duties, but it will not liquidate or pay refunds on those entries until normal liquidation occurs (or Commerce lifts the AD/CVD suspension).
Phase 2 of CAPE is where those remaining entries are expected to be addressed. Until then, rights and refunds remain on different timelines. Get Phase 1‑ready claims into the portal, set clear expectations that CAPE must deliver on the order, and keep watch on CAPE milestones and entry dates to avoid slippage.
That’s how importers protect recovery. Align expectations with declared system capabilities and diligently monitor entries that fall outside CAPE’s current scope.
Stay informed
Developments in customs and trade continue to evolve—stay informed to be prepared:
