Short summary: The U.S. Court of International Trade has announced that it plans to order U.S. Customs and Border Protection (CBP) to reliquidate certain finally liquidated entries in approximately 3,700 pending IEEPA tariff refund cases once CAPE Phase 3 launches. The court also confirmed that CBP continues to expand CAPE’s refund capabilities, including future functionality for entries with open protests, and provided an update on the billions of dollars in refunds already being processed. These developments represent another significant step toward resolving pending IEEPA tariff refund claims for importers. 

The U.S. Court of International Trade (CIT) has announced another significant development in the ongoing litigation over tariffs imposed under the International Emergency Economic Powers Act (IEEPA). In a July 15, 2026, order, Judge Richard K. Eaton confirmed that the court intends to direct U.S. Customs and Border Protection (CBP) to reliquidate certain finally liquidated entries in the approximately 3,700 pending CIT IEEPA refund cases once the next phase of CBP’s Consolidated Administration and Processing of Entries (CAPE) refund system becomes operational. 

While the order does not immediately authorize refunds of liquidated entries, it provides important insight into how the court and CBP plan to move thousands of pending refund claims toward resolution. 

Reliquidation Order Planned for Thousands of Cases 

The court stated that, in connection with the anticipated launch of CAPE Phase 3, it will issue an order directing CBP to reliquidate certain finally liquidated entries using procedures that will be outlined in a forthcoming order. Critically, this order will apparently only be issued on behalf of those importers who have filed litigation at the CIT, leaving a big question mark as to whether refunds for finally liquidated entries will be available to non-litigant importers in Phase 3 or any other Phase. 

This is a significant procedural step because many importers’ entries have already become “finally liquidated,” creating administrative challenges for issuing refunds through existing CBP systems. Reliquidation would provide the mechanism necessary for CBP to process those refunds once CAPE Phase 3 becomes available. 

Although the court has not yet explained which finally liquidated entries will qualify or exactly how the reliquidation process will operate, those details are expected in a future order. 

Billions in Refunds Processed Through CAPE 

This week, CPB also provided an update on the implementation of the CAPE refund system. 

According to a declaration submitted by CBP, approximately $121.75 billion in both potential and certified refunds have now been accepted into CAPE for processing. Of that amount, approximately $86.3 billion in refunds (including duties and interest) have already been transmitted to the U.S. Department of the Treasury for payment. 

However, not every approved refund has been distributed. 

CBP reported that 9,837 refunds have not yet been transmitted to Treasury because the importer of record (or its authorized representative) has not provided Automated Clearing House (ACH) banking information. The court specifically encouraged parties participating in CAPE to ensure their ACH information has been submitted so that approved refunds can be disbursed without unnecessary delay. 

Additional CAPE Functionality Is Still Being Developed 

The court also disclosed that discussions are ongoing regarding additional CAPE functionality to process refunds involving entries with open protests. 

This is another important development because there is currently no procedure for requesting a refund of IEEPA tariffs on an entry that has been protested.  Expanding CAPE’s capabilities could allow CBP to process a broader range of refund claims through a single administrative platform. 

Separately, during a webinar on July 15, 2026, CBP special advisor Elena Ryan said that the next CAPE phase will allow entries that have been filed on behalf of plaintiffs who filed court cases with the CIT that have reached final liquidation. She also shared that CBP is looking at other entry types not currently eligible for refunds using CAPE. 

The court ordered the government to file another progress report on CAPE by August 4, 2026, with a closed settlement conference scheduled for August 5, 2026.  

What Importers Should Do 

If you have not already filed a case at the CIT contesting IEEPA, we strongly recommend that you consider doing so now. It is not clear whether non-litigants will ever get refunds of IEEPA tariffs on entries that have already been liquidated.  

If you have not set up ACH, do so now so that you can actually receive your IEEPA refunds. 

The July 15 order demonstrates that both the court and CBP continue to make meaningful progress toward implementing a large-scale refund process for IEEPA tariffs. However, important procedural questions, including which entries will be subject to reliquidation and exactly how CAPE Phase 3 will function, remain unresolved. 

Importers with pending IEEPA claims should continue monitoring these developments closely, ensure their ACH information has been provided to CBP if participating in CAPE, and work with experienced customs counsel to evaluate how future court orders may affect their refund rights. 

Diaz Trade Law continues to closely monitor the ongoing IEEPA tariff litigation, CAPE implementation, and related CIT proceedings. Our attorneys regularly advise importers on tariff refund claims, customs protests, litigation strategy, and CBP compliance. If your company has paid IEEPA tariffs or has questions about pending refund opportunities, our team can help you evaluate your options and protect your rights throughout this evolving process. 

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