How Importers Can Prepare to Reclaim IEEPA Tariffs (Including New CAPE Refund Process)

In a landmark ruling in V.O.S. Selections v. United States, the Supreme Court of the United States struck down last year’s IEEPA-based “fentanyl” and “reciprocal” tariffs, holding that the President exceeded his authority under the International Emergency Economic Powers Act (IEEPA). But while the tariffs have been invalidated, refunds are not automatic. Importers still need to take affirmative steps to preserve and pursue recovery.

U.S. Customs and Border Protection (CBP) has now launched the first phase of its Consolidated Administration and Processing of Entries (CAPE) system, giving importers an initial pathway to recover IEEPA duties. However, the process is limited, phased and still evolving. Phase 1 is currently limited to certain unliquidated entries and certain entries within 80 days of liquidation.

In practical terms, importers should not assume refunds will simply arrive. Companies should continue tracking liquidation dates, maintaining accurate ACE data, filing timely protests where appropriate and evaluating litigation strategy with counsel. A multi-track approach remains the best way to protect refund rights while CBP’s refund process develops.

CBP Deploys CAPE System

On April 20, CBP activated the first phase of CAPE in the Automated Commercial Environment (ACE). Importers and authorized customs brokers can now file CAPE declarations through ACE accounts. CAPE is designed to consolidate refunds of IEEPA duties, including interest, rather than processing refunds on an entry-by-entry basis.

Under Phase 1, filers can submit CAPE declarations covering up to 9,999 entries at a time. CBP has said it will review the declaration and adjust covered entries to remove IEEPA duties. For eligible claims, refunds for valid declarations may generally be issued within 60 to 90 days after acceptance, although timing may vary depending on compliance review and entry status. Refunds are expected to be consolidated into lump-sum payments rather than distributed separately for each entry.

Importantly, CAPE should not be viewed as a complete solution for every importer or every affected entry. The initial rollout is limited, and legal and procedural questions remain. That means companies should continue preserving their rights through existing channels where appropriate, including protests and, in some cases, court action.

To learn more about CAPE functionality in ACE, review the CAPE Information Notice, and for more information on the CAPE filing process, see the ACE Portal: CAPE Declarations Quick Reference Guide. 

What This Case Does (and Does Not) Affect

Only the IEEPA-based tariffs are invalidated.

Other major trade programs remain fully in effect:

• Section 301 tariffs on Chinese-origin goods
• Section 232 national security tariffs (steel, aluminum and derivatives)
• The suspension of de minimis eligibility

In addition, the administration quickly replaced the IEEPA tariffs with a new Section 122 tariff, set at 10% on most imports (with some exceptions, such as USMCA-compliant and in-transit goods), which is currently the operative framework through the end of July.

So while the legal authority behind last year’s IEEPA duties has been struck down, overall tariff exposure for many importers remains elevated.

Importers who paid IEEPA duties should consider following these steps:

Step 1: Document Every IEEPA Tariff Paid

Because the IEEPA tariffs have now been struck down, importers should move immediately to quantify their exposure and organize entry-level documentation needed to support CAPE filings, protests or potential litigation. Precise records remain essential.

Start by gathering:

• All 2025 entries subject to IEEPA tariffs
• ACE reports showing HTS codes beginning with 9903.01 or 9903.02
• Duty amounts paid
• Corresponding entry summaries and broker records
• Liquidation status for each entry

Update your ACE data every few weeks. Protests or court actions may hinge on accurate duty records.

Step 2: Monitor Liquidation Dates, Deadlines Have Already Started

Refund claims for customs duties are typically tied to a key event: the liquidation of your entry. Liquidation is when U.S. Customs and Border Protection (CBP) finalizes the amount of duties owed on an import.

Here’s why liquidation matters:

• Once an entry liquidates, you have 180 days to file a protest.
• Miss that window and your refund right is permanently lost.
• CBP has been liquidating many 2025 entries much sooner than the standard 314-day cycle.

In other words: some of your entries may already be liquidating. And many more will hit that point between December 2025 and late 2026.

Importers should be checking liquidation status at least monthly; weekly is better.

If lower courts determine that refunds must be pursued through standard CBP protest procedures, importers who failed to monitor liquidation dates could find themselves time-barred.

Importers may also want to explore additional administrative options for unliquidated entries. These include requesting extensions of liquidation or filing Post Summary Corrections (PSCs) to remove IEEPA duties. While CBP has not yet provided clear guidance on whether these approaches will be broadly accepted, they remain important tools to discuss with your customs broker.

This matters even more now that CAPE Phase 1 only covers certain unliquidated entries and certain entries within 80 days of liquidation, meaning eligibility may depend heavily on entry timing and status.

Step 3: File Protests, Still Critical for Preserving Refund Rights

Filing protests under 19 U.S.C. §1514 is the traditional and most widely used path for seeking refunds of duties. CBP can accept your protest and may choose to suspend it pending a court decision on refunds. This is what CBP did during the 2021 protests over certain Section 301 tariffs.

Getting your protest in early may:

• Preserve your rights
• Speed up any future refund
• Reduce the risk of missing entry-specific deadlines

Some importers are filing one protest per importer-of-record number every few months to catch liquidated entries as they occur.

While protests remain a primary tool for preserving refund rights, it is still unclear whether CBP will ultimately rely on the protest process for all refunds or implement a separate administrative solution. Filing protests now should be viewed as a risk management step, helping ensure you do not miss statutory deadlines while the broader refund process beyond the initial rollout of CAPE is still being defined.

Step 4: Consider (With Counsel) Whether Court Action Is Right for You

Since the Supreme Court’s decision, filing actions in the Court of International Trade has moved from a theoretical option to an active strategy. Thousands of importers have already filed CIT actions to preserve their rights to refunds.

In many cases, these filings are not a replacement for administrative action—they are a protective measure. Companies are using them to ensure they remain eligible for refunds even if entries liquidate or if administrative processes are delayed.

As a result, many importers are now pursuing a dual-track strategy:

• Filing protests for liquidated entries
• Evaluating or filing CIT actions to preserve broader rights

This approach reflects the reality that the refund process is still evolving, and companies want to avoid being locked out due to timing or procedural issues.

Operational Considerations Importers Often Miss

As companies focus on legal strategy, several practical details are often overlooked—but they can have a direct impact on whether and how refunds are received.

Importer of record matters

Refunds are generally issued to the importer of record listed on the entry. If your company is not listed, you may not be eligible to receive the refund directly.

Refunds will be electronic

CBP has been moving away from paper checks. Importers should confirm they are properly set up in ACE to receive refunds electronically.

Your customs broker is a key partner—but not the decision-maker

Brokers will play an important role in pulling data, filing protests, and helping navigate the process. But the importer remains legally responsible. Staying actively engaged is critical.

Contracts may determine who ultimately keeps the refund

Even if your company receives the refund from CBP, your contracts with suppliers, distributors, or customers may determine who is entitled to that money. If your agreements are silent on tariffs or refunds, this could become a point of dispute.

Tariffs Are Shifting. Not Disappearing.

Even as importers prepare for potential refunds, tariff exposure isn’t going away. New tariffs are already in place, and additional actions under Sections 301 and 232 are likely.

This isn’t a one-time recovery effort—it’s an ongoing compliance challenge.

To stay ahead, companies need clear, reliable visibility into how tariffs apply to their products and the ability to adapt quickly as rules change.

Shipping Solutions makes that easier.

Our Import Controls Software and Product Classification Software work together to help you accurately assign HTS codes and instantly identify applicable tariffs, duties, and restrictions. Instead of relying on disconnected spreadsheets or manual research, you get a centralized system for managing tariff exposure across your product catalog. The video below shows you how it works.  

In a fast-changing trade environment, better classification and tariff tracking don’t just improve efficiency—they help reduce risk, prevent costly errors and keep your business compliant.

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This article was first published in December 2025 and has been updated to include current information, links and formatting.