IEEPA Tariff Refunds Authorized: What Importers Need to Know

On July 17, 2026, the U.S. Court of International Trade (“CIT”) issued an order directing U.S. Customs and Border Protection (“CBP”) to begin processing refunds for importers that filed civil lawsuits seeking IEEPA tariff refunds. However, the order does not extend to importers that did not file suit, leaving their eligibility for refunds dependent on either future litigation or the outcome of the government’s pending appeal.

How Does the Customs Entry and Liquidation Process Work?

The refunds are part of the Consolidated Administration and Processing of Entries (CAPE) Phase III refund process, which involves complex procedural requirements. For importers determining whether they are authorized to submit declarations to participate in these refunds, a basic understanding of the import shipment process and its key terms is helpful.

1. Importer pays estimated duties. Upon entry to the U.S., the importer pays estimated duties on imported goods to CBP. CBP generally “liquidates” entries within 314 days of the import date.
2. CBP liquidates the entry. “Liquidation” is the final determination by CBP of the amount owed to it. If too much duty was paid upon entry, CBP issues a refund. If too little was paid, CBP issues a bill to the importer.
3. Voluntary review window. CBP may voluntarily review the entries again within 90 days of liquidation for correction and then “reliquidate” them.
4. CBP finalizes liquidation. Ninety days after liquidation, the entries are deemed to have been “finally” liquidated and CBP generally cannot reopen them without court authorization.
5. Matters deemed settled. At 180 days post-liquidation, all matters relating to an entry are deemed settled.

Can Non-Litigants Receive CAPE Phase III IEEPA Tariff Refunds?

Earlier this year, the U.S. Supreme Court ruled that IEEPA tariffs were unlawful. The CIT then ordered the CBP to refund IEEPA duties paid by importers of record (“IORs”) through liquidation or reliquidation. As expected, the government appealed the order to the extent that it requires CBP to issue refunds of finally liquidated entries to non-litigants, arguing that CBP does not have the authority to issue such refunds without a valid court order.

To streamline the refund process, CBP created CAPE. CAPE phases I and II currently allow importers to submit refund claims for most non-finally liquidated entries, including entries that remained open (unliquidated) or were recently liquidated. However, refunds have yet to be processed for older, finally liquidated entries, which generally require a court order. CAPE Phase III is expected to address these entries.

On July 17, the CIT authorized CBP to begin processing refunds for importers who filed cases as part of the CAPE Phase III roll-out. According to that order, when CAPE Phase III functionality becomes available, CBP shall provide importer’s counsel with instructions for submitting the required IOR information. After the information has been submitted and CBP’s requirements have been satisfied, the importer can then file CAPE declarations for finally liquidated entries.

The order does not address importers that did not file suit. Presumably, their ability to obtain refunds will be decided at the time a decision is made on the government’s appeal.

Options for Importers Seeking IEEPA Tariff Refunds

Generally speaking, importers who did not file suit have two options:

1. File a CIT action. Importers may file suit in the CIT so that their entries can be processed as part of the CAPE Phase III roll-out; OR
2. Wait for the appeal. Importers may await the outcome of the government’s appeal, which may determine whether refunds will be available to all affected importers without individual litigation.

Given the uncertainty surrounding refunds for finally liquidated entries, affected importers should consult with experienced international trade counsel to assess their potential recovery and determine whether litigation should be considered.