IEEPA Tariff Refund Update: Phase 1 has Limits

To Our Valued Partners,

We want to share a critical update on the IEEPA tariff refund process following Customs’ March 31 filing with the Court of International Trade.

This update offers additional clarity on how the refund process is expected to move forward, including what will be included in the initial phase and what may follow in later stages.

What Has Changed

CBP confirmed that the CAPE refund system is now in advanced development and moving into final testing.

Current progress shows:

• Claim portal approximately 85% complete
• Mass processing approximately 60% complete
• Review and liquidation functions approximately 80% complete
• Refund processing approximately 75% complete

The system is progressing, but it is not live yet.

Phase 1 Will Only Cover Part of the Market

CBP has now clearly defined the scope of Phase 1.

It will only process:

• Unliquidated entries
• Entries still within the 90-day voluntary reliquidation window

CBP estimates this will cover approximately 63% of affected entries.

This means a portion of entries will be addressed in later phases.

Final Entries Are Still Not Included

The Court’s March 27 order expanded relief to include entries that are already final.

However:

• CBP will not process final entries in Phase 1
• These entries will be addressed in a later phase
• Implementation of the court’s expanded order will require additional system development and has not yet been incorporated into Phase 1

This reflects the gap between the scope outlined by the court and what can be operationally executed at this stage.

Important Clarification on “Accepted” Entries

CBP also clarified that certain entries can be submitted through CAPE, but will not be processed immediately.

This includes entries with statuses such as:

• Suspended
• Extended
• Under Review

For these entries:

• CAPE will remove the IEEPA tariff lines
• But liquidation and refunds will occur through normal CBP processing timelines

These entries will follow standard CBP liquidation timelines and may take longer than typical Phase 1 processing.

Entries That Will Not Be Processed in Phase 1

CBP confirmed that the following will not be accepted in Phase 1:

• Reconciliation entries
• Drawback entries
• Entries under active protest
• Entries not filed in ACE
• Certain AD or CVD entries pending Commerce instructions

These scenarios will require additional development and will be addressed later.

Processing Will Not Be Immediate

Even once CAPE is live:

• CBP may take up to 45 days after a claim is submitted to process entries
• Additional review time may apply for complex cases

This confirms refunds will be reviewed and validated, not automatically issued.

Additional Timing Consideration

CBP also confirmed:

• Phase 1 will accept entries liquidated within the last 80 days
• This is to ensure reliquidation occurs within the 90-day legal window

This creates a narrow timing window that companies need to be aware of.

Electronic Refund Readiness Update

CBP reported that:

• 26,664+ importers are now enrolled for electronic refunds
• These represent approximately 78% of affected entry value

All refunds are now issued electronically, so proper ACE and ACH setup remains critical.

What This Means

At this stage, the process is clearer:

• The system is close, but not ready
• Phase 1 is intentionally limited
• Final and complex entries will take longer
• Refunds will be processed in controlled stages

Refund eligibility exists, but the rollout will occur in structured phases and may not apply to all entries immediately.

What Companies Should Do Now

To be prepared for Phase 1:

• Confirm ACE Portal access
• Ensure ACH refund enrollment is complete
• Identify entries that are unliquidated or within the 90-day window
• Separate out entries that may fall into excluded categories

Preparation now will directly impact how quickly funds are received once CAPE goes live.

We are actively monitoring all court filings and CBP updates and will continue to provide clear, fact-based guidance as this develops.

If you want to review your entries or walk through how this applies to your shipments, call me at 833-782-7628 Ext. 1 or set up a quick 15-minute call.

Resources:

CBP March 31 CAPE Status Update (Latest Filing)
CBP March 19 Declaration (Second Progress Report)
CBP Declaration Responding to March 6 Court Order (March 12, 2026)
IEEPA Tariff Refund Resource Hub