The Supreme Court’s decision to strike down International Emergency Economic Powers Act tariffs triggered a major refund process, but new complications are emerging for importers across the United States.
US Customs and Border Protection launched its Consolidated Administration and Processing of Entries system, known as CAPE, to manage the refund flow, with early phases already processing payments for eligible entries.
CAPE Phase I covers only unliquidated and non-finally liquidated entries, while Phase II, launched on June 29, extended the system to entries flagged for reconciliation where no reconciliation entry has been filed.
Entries subject to both antidumping and countervailing duty orders alongside IEEPA duties remain excluded from CAPE entirely, and CBP has not confirmed when those overlapping entries will be addressed.
Approximately $1.7 billion in refunds remains stalled because relevant importers have not registered ACH payment information with CBP, creating an avoidable bottleneck in the system.
CAPE Phase III, which was designed to cover finally liquidated entries, has been temporarily delayed while CBP builds new system validations, with no revised launch date announced as of August 25.
CBP maintains that it lacks the authority to reliquidate finally liquidated entries without a specific court order, meaning only importers who have filed lawsuits at the Court of International Trade currently qualify for Phase III refunds.
CIT Judge Eaton has begun issuing individual court orders directing CBP to reliquidate entries without regard to IEEPA duties, resolving CBP’s stated concern but placing the burden firmly on individual importers to pursue litigation.
A potentially significant alternative is progressing through the courts, as the CIT heard oral argument on August 6 on the Liberty Justice Center’s motion to certify a nationwide class in V.O.S. Selections, Inc. v. United States.
That class certification motion, filed under Rule 23(b)(2), seeks to allow importers to recover IEEPA tariff refunds on finally liquidated entries without each importer needing to file an individual lawsuit at the CIT.
The government is expected to appeal any favourable certification ruling to the Federal Circuit, meaning final resolution of that route may not occur before the end of 2026.
Separately, the Department of Justice’s appeal of the CIT’s original universal refund order remains pending before the US Court of Appeals for the Federal Circuit, with DOJ arguing the CIT exceeded its authority by ordering universal relief for non-plaintiffs, citing the Supreme Court’s decision in Trump v. CASA, Inc., 606 U.S. 831 (2025).
If the government prevails on that appeal, only importers who have independently filed CIT lawsuits may be entitled to receive Phase III refunds, leaving non-litigating importers potentially without any recovery mechanism.
Importers with unliquidated or recently liquidated entries eligible under CAPE Phases I or II should ensure declarations are submitted for all eligible entries and confirm that ACH enrollment is in place, as refunds cannot be issued without valid payment details on file.
For importers holding finally liquidated entries, the situation carries the greatest risk, as no confirmed administrative or judicial mechanism currently exists for those who have not filed suit to recover IEEPA duty refunds.
Filing suit at the CIT under its residual jurisdiction, provided under 28 U.S.C. Section 1581(i), remains the clearest path to qualifying for Phase III and obtaining a court order directing reliquidation of affected entries.
Importers should be aware that the two-year filing window from the date of entry applies to residual jurisdiction actions, meaning entries made on April 5, 2025 would carry a filing deadline of April 5, 2027.
Importers may also consider filing a protest with CBP within 180 days of liquidation, though CBP is not currently processing CAPE claims for entries on which a protest has been filed, and the interaction with existing court orders remains unresolved.
Relying solely on pending class-certification proceedings or the Federal Circuit appeal to preserve claims carries significant risk, and importers are advised to review their ACE accounts and consult counsel on entry dates and exposure before assuming those routes will protect every claim.