Navigating IEEPA Tariff Refunds: Legal and Compliance Considerations

Editor’s Note: The recent Supreme Court decision invalidating tariffs imposed under the International Emergency Economic Powers Act (IEEPA) has opened the door to tariff refunds for importers. However, amid the newly implemented administrative process for refunds and heightened enforcement scrutiny, importers must do more than simply file a claim.

Importers pursuing refunds of tariffs imposed under IEEPA must navigate a developing framework that blends judicial relief with a newly established administrative process. U.S. Customs and Border Protection (CBP) has implemented the Consolidated Administration and Processing of Entries (CAPE) as the primary mechanism for submitting refund claims following the Supreme Court’s decision and subsequent orders from the U.S. Court of International Trade (CIT). While CAPE provides a pathway to recovery, it is limited in scope, phased in its application, and subject to ongoing legal and procedural uncertainty. Against this backdrop, importers must approach refund claims with a coordinated strategy that accounts for litigation posture, operational readiness, and heightened compliance expectations.

Requesting Refunds through CAPE

Following the Supreme Court decision and subsequent CIT orders, CBP developed the Consolidated Administration and Processing of Entries (CAPE) – the agency’s official process for handling IEEPA refund claims.

CBP launched Phase 1 of CAPE on April 20, 2026. The following entry types are eligible for refunds during Phase 1:

Entries that have not yet been liquidated
Entries liquidated within the 80 days before the CAPE portal launch
Entries with liquidation status suspended, extended, or under review
Certain warehouse and withdrawal entries (refund issued after liquidation)

CAPE Phase 2 will cover the following entry types:

Entries that have been flagged for reconciliation
Entries designated on a drawback claim
Entries covered by an open protest
Entries not filed in the Automated Commercial Environment (ACE), and entries without a liquidation status in ACE
Entries subject to antidumping and countervailing duties (AD/CVD)
Entries for which liquidation is final

CBP has not yet announced when Phase 2 will be launched.

CBP has also stated 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.

CAPE Process

CAPE refund submissions follow a four-step process:

The Importer of Record (IOR) or broker submits a declaration, using the CBP-provided CSV template in ACE.

a. The following information is required in the declaration:

i. A list of entry numbers for which refunds are requested. No supporting documentation is required beyond the list of entry numbers.

ii. The following certification:

“I attest to the best of my knowledge and belief that: (1) the country of origin, entry type, Harmonized Tariff Schedule of the United States (HTSUS) classification(s), and valuation for each entry number is true and correct; and (2) the goods were not entered in violation of any applicable United States law, order, or rule. I understand that if I make or cause others to make material false statements or omissions to CBP, including in connection with a request for tariff reimbursement, I may be subject to criminal prosecution and civil liability, including but not limited to under 18 U.S.C. §§ 1001, 542, 545, 19 U.S.C. § 1592, and 31 U.S.C. § 3729(a).”

b. Individual declarations have a 9,999 entry limit, but multiple declarations may be filed.

2. CBP processes and validates the declaration.

a. If the declaration is validated, it is accepted into the ACE Portal and assigned a claim number. Any entries that are not accepted will be removed from the declaration, with all valid entries remaining to continue through the process.

b. If the declaration is not validated, an error message will appear. A full listing of error messages may be found here.

3. ACE will liquidate or reliquidate the entries by removing the IEEPA HTSUS codes once the declaration has been processed and validated by CBP.

4. Refunds will be issued directly to the IOR’s bank account recorded in the ACE ACH refund tab, or to a party the IOR has designated to receive refunds on its behalf via CBP Form 4811. Refunds will be issued within 60 to 90 days, unless further review is required.

Tracking CAPE Refunds

CAPE is designed to consolidate refunds of IEEPA duties rather than processing refunds on an entry-by-entry basis. It is the importer’s responsibility to track which declarations have been approved and when refunds are issued.

To assist importers with tracking refunds, CBP has released new ACE Reports that allow importers and brokers to track CAPE submissions:

REV-603 Trade Refund Report: Allows users to track CAPE declarations after the refund is received by Treasury. The report populates one of the following statuses: (1) Sent to Treasury; (2) Treasury Issued; (3) Funds Diverted (funds have been diverted for an existing bill); and (4) Check/ACH Returned – this status occurs when refunds are rejected due to incomplete ACH Refund enrollment.
REV-613 ACH Rejected Refunds Report: Identifies refunds that have been rejected due to incomplete ACH Refund enrollment.
ES-022 CAPE Entry Summary Report: Links CAPE declaration numbers, entry summaries, and refund amounts (broken down by principal and interest), allowing importers to reconcile expected recovery with the actual amount.
REV-615 CAPE Details Refunds Report: Provides detailed entry-level data for refunds that have been sent to Treasury.

Preparing for CBP’s Compliance Review

CBP has made clear that compliance concerns could require further review and delay the issuance of IEEPA refunds. CBP has not addressed what would constitute a “compliance concern” or what would trigger further review. In practice, compliance concerns could include discrepancies in classification, valuation, or country of origin, as well as broader enforcement priorities such as transshipment, duty evasion, or sanctions-related risks.

Given CBP’s increasing use of data analytics and cross-agency enforcement tools, refund requests may effectively function as a trigger for broader compliance review. In addition, through the required attestation, IORs and brokers are representing that the information submitted is accurate, meaning that a compliance review triggered by an error or discrepancy in a filing could expose the importer not just to a delayed refund, but to potential liability for a false attestation. Further, a false attestation could trigger liability under the False Claims Act (FCA) and subject an importer to steep civil monetary penalties. The FCA permits private parties to file suit on behalf of the United States for false claims and to share in a portion of the government’s recovery. Customs-related FCA enforcement cases have received renewed attention in recent years as the government has increased enforcement efforts. In March 2026, the Trump Administration launched the Task Force to Eliminate Fraud, and in May 2026, the Civil Division of the Department of Justice announced reforms to accelerate the review of the False Claims Act. In addition, in June 2026, President Trump signed an Executive Order to strengthen customs enforcement and tighten importer responsibilities. Consequences of an FCA violation can be severe, including treble damages and statutory penalties for each false claim submitted to the government.

While importers navigate the IEEPA refund process, they should also take time to review internal compliance procedures, including:

Classification Procedures: Update and document the process for determining HTSUS classifications, including methods for documenting justifications, maintaining supporting evidence, and deciding whether to request a binding ruling from CBP.
Valuation Procedures: Update and document the process for determining valuation, including when a related party is involved. Document the circumstances under which a binding ruling from CBP may be necessary.
Country of Origin Procedures: Establish how origin is determined, documented, and certified, including rules for substantial transformation, marking, and preferential programs (like USMCA).
Recordkeeping: Ensure recordkeeping procedures meet CBP’s 19 C.F.R. Part 163 requirements, including keeping all import-related documents (commercial invoices, packing lists, entry summaries, etc.) for at least five years.
Internal Documentation: Document procedures for addressing identified issues, including internal reporting, escalation, and filing prior disclosures when appropriate to mitigate penalties.
Data Review: Importers should complete a comprehensive data review to ensure that the information submitted in the declaration attestation is accurate. In particular, companies should confirm that HTS classifications and values are correct, that HTS classifications are in the correct order, and that entered values have been allocated to the appropriate HTS lines. Additionally, importers claiming a Special Program Indicator (SPI) or Free Trade Agreement (FTA) preference should verify that the underlying eligibility requirements were satisfied and that supporting documentation is available.

Preserving IEEPA Claims

Importers seeking IEEPA refunds should consider whether additional procedural steps are necessary to preserve their rights to refunds. The scope of the CAPE process and the ultimate availability of refunds remain subject to ongoing legal developments. To preserve IEEPA refunds, importers should consider taking the following steps:

Seek counsel regarding litigation at the CIT. CBP has advised that importers do not need to file a case with the CIT to receive an IEEPA refund for entries covered in Phase 1. However, CBP has provided no legal guidance on whether a case needs to be filed with the CIT for other entries. Importers should consider filing a case to preserve their right to refunds in future phases.
Consider filing Protests with CBP for all entries not included within Phase 1 of CAPE (i.e., liquidated more than 80 days).

Compliance is an evolving practice, and regular updates and training are a vital element of any import compliance program.

Navigating IEEPA Tariff Refunds: Legal and Compliance Considerations