- Which Duties Are Eligible for a Refund
On March 20, March 27, and March 31, 2026, Judge Richard Eaton of the United States Court of International Trade (“CIT”) issued updates to the Court’s March 5, 2026, Order regarding duties imposed under the International Emergency Economic Powers Act (“IEEPA”). These updates expand the potential refunds to include all duties related to IEEPA. The Court directed U.S. Customs and Border Protection (“CBP”) to take the following actions:
- Unliquidated duties: CBP must liquidate these entries without including the IEEPA duties.
- Non-final liquidated duties:Entries where liquidation is not yet final must be reliquidated without including the IEEPA duties.
- Final liquidated duties:Under the March 27, 2026, Order, entries where liquidation is already final must also be reliquidated without including the IEEPA duties.
These Orders do not cover issues related to duty-free de minimis treatment under 19 U.S.C. § 1321, which applies to items valued at less than $800. Those issues are being addressed in separate litigation before the CIT.
In its most recent Order, the Court reiterated that no agreement had been reached regarding the treatment of entries for which liquidation is already final, and noted that importers “should be aware” of the remedies available under 19 U.S.C. § 1514. That statute, however, generally applies to entries that have not yet become final. Nevertheless, in light of the Court’s confirmation that final entries will be subject to reliquidation, this language appears to signal that importers with final liquidated entries should consider filing a protest with the CBP.
- Updates on the Consolidated Administrative and Processing of Entries (CAPE) System
On March 31, 2026, Brandon Lord of the CBP provided an update on the CAPE systems completion, which is being built to automate these refunds. For a summary of the CAPE system, please see our prior post here: International Trade Lawyer | CBP Tariff Refund Process Update 2026.
As of late March 2026, the Claims Portal is approximately 85% complete, the Review and Liquidation is approximately 75% complete, the Refund Component is approximately 75% complete and the Mass Processing is approximately 60% complete. At the March 31, 2026, conference, CBP stated it is on track to begin accepting CAPE Declarations by the April 20, 2026, deadline imposed by the CIT.
According to Brandon Lord, Phase 1 of CAPE will be able to process approximately 63% of entries where IEEPA duties were paid. Phase 1 specifically targets unliquidated entries and those within the 90-day voluntary reliquidation period. Phase 1 has also been expanded to include warehouse withdrawal entries and entries with statuses of “Suspended,” “Extended,” or “Under Review.”
Despite the Court’s March 27 and March 31 orders, CBP’s Phase 1 system will not yet accept finally liquidated entries, entries flagged for reconciliation, drawback claims, or entries covered by an open protest. CBP however intends to build the capability to process these entries in subsequent development phases.
- Next Steps for Importers
CBP expects to take up to 45 days to review and liquidate validated entry summaries once a CAPE declaration is accepted. For entries not covered by the initial rollout, CBP is planning subsequent phases. Importers are encouraged to ensure they have completed the transition to electronic payment profiles to avoid delays in receiving future refunds. CBP issues all refunds electronically, and CIT encourages importers to refer to CBP’s guidance on enrollment in the electronic ACH Refund program which will house CAPE.
Importers that have entries approaching final liquidation should file a protest to reserve their right to a refund. If the 180-day mark goes by, and the Court determines final liquidated entries are not entitled to a refund, you will miss your chance on any of these entries.
At Chan Vitanza LLP, we are continuing to actively monitor the CBP’s progress and CIT’s management thereof. If you have questions about refund eligibility or how to prepare for the claims process, contact our New York team immediately. The window to prepare is now, and companies that act early will be best positioned when refunds begin processing. Our attorneys are actively tracking these developments and can help you navigate the requirements, position your claims efficiently, and accelerate recovery of any duties owed.