Recent developments surrounding tariffs imposed under the International Emergency Economic Powers Act (IEEPA) have created both opportunity and uncertainty for U.S. importers. With the U.S. Supreme Court ruling that IEEPA-based tariffs are unlawful, many companies understandably assume that refunds will follow automatically. In reality, that is far from guaranteed.  

For importers seeking to recover duties paid under these tariffs, a proactive legal and compliance strategy is essential.  

Recent Updates at the CIT 

On March 27, 2026, Judge Eaton issued an Order requiring CBP to liquidate or reliquidate all entries without the IEEPA duties. This Order applies to (1) unliquidated entries, (2) liquidated entries being protested, and (3) final liquidated entries. See CIT Order Dated March 27, 2026.

On March 31, 2026, CBP reported progress in creating the Consolidated Administration and Processing of Entries (CAPE), which will allow importers to submit refund requests.

On April 1, 2026, Judge Eaton ordered CBP to report on the progression of CAPE on April 14, 2026. In addition, in this Order, Judge Eaton encouraged importers to enroll in the ACH program because CBP will now only issue refunds electronically. Further, regarding liquidated entries, Judge Eaton stated that “importers should be aware of the option to file protests.   

On April 6, 2026, the plaintiff in the anchor case, Atmus Filtration, filed a Notice of Dismissal, thereby dropping from the case. However, the refund process is unaffected.

In response to the dropping of the case by Atmus Filtration, Judge Eaton lifted the stay in Euro-Notions Florida, Inc. v. United States (Case # 1:25-cv-00595-RKE), and the refund process will now initially be resolved in the Euro-Notions case.   

On April 7, 2026, Judge Eaton issued another Order. Similar to the Order dated March 27, Judge Eaton’s April 7 Order requested CBP to liquidate or reliquidate all entries without the IEEPA duties, including (1) unliquidated entries, (2) liquidated entries being protested, and (3) final liquidated entries. On April 8, 2026, Judge Eaton ordered CBP to report the progression of CAPE by Tuesday, April 14, 2026.   

Tariff Refund Process 

On April 10, 2026, CBP added a webpage titled “International Emergency Economic Powers Act (IEEPA) Duty Refunds,” as well as CSMS # 68315804, which summarizes the incoming refund process. This IEEPA Refund webpage contains important information. First, CBP states that the Consolidated Administration and Processing of Entries (CAPE) will be launched on April 20, 2026, as Phase 1 only for unliquidated entries and liquidated entries within 80 days of liquidation. Second, CBP indicates the actions required for requesting refunds:  

  1. The Importer of Record (IOR) and its customs broker must have an ACE account.   
  2. ACH must be set up in ACE.   
  3. The IOR and its customs broker must submit the refund request (CAPE Declaration) via CAPE in the ACE system.   

 Third, the CAPE Declaration must be submitted as a CSV file in ACE. Once the CAPE function is available, the CAPE Declaration template will be available in the ACE system. Fourth, once the CAPE Declaration has been processed and validated by CBP, ACE will liquidate or reliquidate the entries by removing the IEEPA HTS codes.  Fifth, refunds will be issued directly to the IOR’s bank account recorded in ACE or to a party the IOR has designated to receive refunds on its behalf via CBP Form 4811. Lastly, after the CAPE Declaration is accepted by CBP, refunds will be issued within 60 to 90 days, “unless a compliance concern requires further CBP review.”   

CBP has not addressed what would constitute a “compliance concern” or what would trigger “further CBP review.” We believe that if CBP intentionally delays or obstructs the refund due to its “compliance concern,” the CIT has exclusive jurisdiction to address such action.   

CBP also states that for entries that are extended, suspended, or under review, CBP will “maintain their liquidation status with validated refunds issued at liquidation.” This means that no IEEPA refunds will be issued until the entries are liquidated. While Phase 1 is only for unliquidated entries and liquidated entries within 80 days of liquidation, we expect CBP to later announce a refund process for entries liquidated more than 80 days before filing a refund request.   

What Importers Should Do  

In preparing for refunds, we continue to recommend that importers take the following steps:  

  1. File a lawsuit at the U.S. Court of International Trade. While the CIT Orders purportedly apply to litigants and non-litigants alike, this position will likely be appealed, and resolution could take months.
  2. If not already created, create an ACE account immediately  (and ensure Diaz Trade Law has access as a consultant on your ACE account)
  3. If you have an ACE account but you haven’t connected in the past 45 days, call ACE Support immediately to reactivate your account
  4. Register to receive refunds via ACH using your U.S. bank account
  5. Prepare an ACE report covering all entries with IEEPA duties (including the liquidation dates)
  6. For Phase I refund requests, prepare a CAPE Declaration consisting of a .CSV (comma-separated values) file containing only entry numbers, and only entry numbers 1) for which IEEPA duties were paid, and 2) that are unliquidated or liquidated less than 80 days before the date the Declaration will be submitted.  

The CIT continues to extend the defendant’s stipulation to newly filed challenges. The defendant’s stipulation stated that the government will not object to refunds of duties on liquidated entries. Thus, it is important for entities that have not yet gone to Court to do so to take advantage of the stipulation.    

Contact Diaz Trade Law for Assistance with Your Tariff Refund Strategy  

Recovering tariff refunds in the wake of the IEEPA litigation will not be automatic, and for many importers, the window to act may be limited. Developing a clear, proactive strategy is critical to preserving and maximizing any potential recovery.    

Diaz Trade Law works closely with importers to evaluate eligibility, identify risks, and pursue the most effective path forward. If your company paid IEEPA duties, now is the time to assess your position and take action to protect your rights.  

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