Tariff Update: Refunds for Finally Liquidated Entries Under IEEPA

By Brett W. Johnson, Derek Flint, T. Troy Galan, and Thomas Williams

U.S. Customs and Border Protection (CBP) continues to build out the Consolidated Administration and Processing of Entries (CAPE) system to issue refunds for tariffs importers paid under the International Emergency Economic Powers Act (IEEPA) following the U.S. Supreme Court’s decision in Learning Resources, Inc. v. Trump.¹ Recently, the U.S. Court of International Trade (CIT) issued an order directing CBP to “reliquidate” finally liquidated entries subject to IEEPA duties for importers who have filed civil suits in the CIT for IEEPA tariff refunds.²

However, the Administration’s pending appeal is challenging the CIT’s ability to grant universal relief, which could affect the refund rights of importers who have not yet filed suit in the CIT. As such, those importers of record that have liquidated entries that are not covered by the CAPE system should evaluate the ability to bring a lawsuit in the CIT to enable coverage by the new CIT order.

I. CAPE and Refunds of Unliquidated Entries

CBP initially launched the CAPE system on April 20, 2026, just a few months after the U.S. Supreme Court’s decision in Learning Resources, Inc., to refund IEEPA tariffs paid by importers.³ CAPE implementation has proceeded in three phases, with the first two refund phases being confined to unliquidated entries. Phase 1, beginning on April 20, 2026, included certain unliquidated entries and certain other entries within 80 days of liquidation. Phase 2 of CAPE was launched on June 29, 2026, and it was also limited to the same subset of unliquidated entries, but it included entries flagged for reconciliation for which the reconciliation entry had not yet been filed.⁴

As of Phase 2, approximately $121.75 billion in potential and certified refunds have been accepted for processing in CAPE, and $86.3 billion in tariff refunds and interest have been sent to the U.S. Department of the Treasury to be disbursed to importers of record.⁵ However, 9,837 refunds have not been transmitted to Treasury because the importer of record or its authorized designee has not provided ACH account information for payment.⁶

II. Phase 3 of CAPE and Refunds of Finally Liquidated Entries

Phase 3 is the milestone most importers have awaited, because it extends refunds to finally liquidated entries that fell outside the first two phases. Following the CIT’s July 17 order, Phase 3 is now in effect, and CAPE will soon begin accepting finally liquidated entries under procedures dictated by the CIT.

In its July 15 order, the CIT stated that it “will enter an order that directs [CBP] to reliquidate certain finally liquidated entries in accordance with a procedure that will be outlined in the order,” and that the forthcoming order “will be entered in each of the approximately 3,700 IEEPA cases assigned to the court.”⁷ Further, CAPE functionality may be expanded to process entries with open protests.⁸

The CIT issued that order on July 17, 2026, requiring CBP to “reliquidate, without regard to IEEPA duties, any and all of Plaintiffs’ entries that have been liquidated for more than 80 days and on which Plaintiffs made estimated deposits pursuant to IEEPA.”⁹ The CIT’s July 17 order reaches both finally liquidated entries and entries that may become final while being processed by CAPE, and it supplies the legal authority the government had maintained was necessary before it could reliquidate finally liquidated entries. The CIT will send out instructions to Plaintiffs’ counsel to follow for the Phase 3 CAPE declarations.

However, the Administration’s pending appeal may delay or foreclose IEEPA tariff refunds on finally liquidated entries for importers that have not filed suit in the CIT. The Administration has filed an appeal in the U.S. Court of Appeals for the Federal Circuit, challenging the CIT’s equitable and jurisdictional authority under Trump v. CASA, Inc.¹⁰ to issue universal injunctive relief for finally liquidated entries under IEEPA.¹¹

A key distinction in this appeal is the scope of relief. The CIT’s July 17 reliquidation order applies to the plaintiffs in the more than 3,700 IEEPA cases currently before the CIT — meaning importers who have filed suit will receive individualized relief through those proceedings. Universal relief, by contrast, would extend to all affected importers regardless of whether they filed suit.

If the Administration prevails in the Federal Circuit and the CIT’s authority to grant universal relief is curtailed, only importers with pending cases before the CIT would be entitled to refunds for their finally liquidated entries. Importers who have not yet filed suit in the CIT to preserve their individualized claims for IEEPA tariff refunds may therefore risk losing their refunds entirely if the Administration succeeds in its appeal.

III. What Is Next for Importers and Finally Liquidated Entries Under IEEPA

Phase 3 represents a significant step forward for importers seeking refunds on finally liquidated entries. Because the CIT’s July 17 reliquidation order directs CBP to reliquidate the entries of plaintiffs with pending cases — an importer’s litigation posture may affect how and when its finally liquidated entries are addressed. There are several steps that importers can take now to help ensure timely payment of refunds, prepare for implementation of Phase 3, and preserve their refund rights.

Confirm ACH account information with CBP – Importers of record with pending claims for liquidated or unliquidated entries should confirm that accurate ACH account information is on file with CBP. Nearly 10,000 refunds remain unprocessed between CBP and Treasury because importers have not provided ACH account information, delaying disbursement of IEEPA tariff refunds.

Identify finally liquidated entries – Now that the CIT has issued its Phase 3 reliquidation order, importers with finally liquidated entries should consider a review of their entry records to identify affected entries and prepare to provide the importer of record identification information CBP will require before a CAPE declaration can be filed. Entries with open protests may also be included in future CAPE expansions, and importers should prepare their records accordingly.

File suit to preserve refund rights – Filing suit in the CIT remains critical for importers to protect their refund rights. The CIT’s July 17 reliquidation order provides individualized relief only to importers with pending cases. If the Administration prevails in its Federal Circuit appeal challenging the CIT’s authority to grant universal relief, importers without pending CIT cases may be unable to recover refunds on their finally liquidated entries. Importers with finally liquidated entries should consult with experienced trade counsel to assess their exposure and determine whether filing suit is warranted.