What triggered the CBP’s IEEPA duty refund process?

The refund process was triggered by a US Court of International Trade decision that found duties collected under IEEPA were not authorized. As a result, CBP was directed to refund those duties and correct affected import entries.

What is the CAPE system and its role in refunds?

The CAPE system, developed within the Automated Commercial Environment, is used by CBP to calculate, process, and issue refunds of IEEPA duties. It also supports the correction and reliquidation of affected entries.

Which entries are covered in CAPE Phase 1?

Phase 1 focuses on unliquidated entries and those liquidated within the previous 80 days, covering around 63% of affected entries. These can be reliquidated within the 90-day statutory window.

Which entries are excluded from Phase 1 processing?

Excluded entries include reconciliation entries, drawback claims, open protests, entries not in ACE or without liquidation status, and AD/CVD entries awaiting instructions. These will be handled in later phases.

What steps should businesses take to prepare for CAPE Phase 1?

Businesses should segment their affected entries by status, compile entry summaries, verify ACE records, and check IEEPA Chapter 99 HTS codes to reduce errors and ensure smooth CAPE declaration processing.

What is the current progress of the CAPE system and refund process?

CBP reports that the Claim Portal is about 85% complete, liquidation functionality is around 80% complete, and refund processing stands at 75%. Additionally, a large portion of importers have already set up electronic refunds covering most affected entries.

US CBP IEEPA Duty Refunds: CAPE System Update

Following the US Court of International Trade (CIT) decision on duties collected under the IEEPA, for which the US President Donald Trump was not authorized to impose, the US Customs and Border Protection (CBP) was directed to refund them and correct millions of import entries affected by those tariffs. On March 31, 2026, the CBP informed the CIT that its new CAPE system within the Automated Commercial Environment (ACE) is making significant progress in calculating and refunding duties.

Refund of Duties and Actions Businesses Should Take

CAPEs Phase 1 will initially process unliquidated entries and those liquidated within the prior 80 days, covering about 63% of entries with IEEPA duties, allowing reliquidation within the 90-day statutory window. The CBP explained how the recalculation and refund process works, depending on the status and type of entry, including whether it is under review, suspended, subject to AD/CVD instructions, or a warehouse entry, with certain entries excluded from Phase 1 and refunds deferred until normal liquidation procedures apply.

Entries excluded by the Phase 1 include reconciliation entries, drawback claims, open protests, entries not in ACE or lacking liquidation status, and AD/CVD entries awaiting liquidation instructions. The CBP anticipates that it will take up to 45 days to review and liquidate validated entries after CAPE declaration acceptance. Other CAPE phases will expand functionality to handle more complex cases, including reconciliation and drawback entries, final liquidations, non-ABI entries, and advanced interest calculations.

Businesses should take several preparatory steps for Phase 1, depending on their circumstances. Some steps to consider include segmenting IEEPA-affected entries into unliquidated, recently liquidated, and excluded or complex categories to plan submissions and determine which entries should be deferred to a later phase. Furthermore, compiling entry summaries, verifying ACE status, and checking for IEEPA Chapter 99 HTS codes to minimize validation errors is essential for preparing CAPE Declarations.

Conclusion

The CBP reported that the Claim Portal is about 85% complete, that around 80% of the liquidation/reliquidation functionality is complete, and that refund processing is at 75%. Given that the electronic refunds are mandatory for all IEEPA refunds, 26,664 importers of record have completed the setup, covering roughly 78% of affected entries and representing about USD 120 billion in principal.

Source: EY, VATabout