Legacy Law Blog

Importers who paid International Emergency Economic Powers Act (IEEPA) based tariffs now have a significant opportunity to recover duties, but the window to act efficiently has already opened.

Recent court decisions and new customs procedures mean that preparation over the next few weeks could determine how quickly, and how fully, you get refunded.

Background: How We Got Here

In February 2026, the U.S. Supreme Court struck down the IEEPA tariffs as unconstitutional, opening the door to refunds of duties previously collected under those measures. The court’s decision applies retroactively, so affected importers may be able to claim refunds on qualifying entries where IEEPA duties were paid, subject to timing and liquidation rules.

Following the ruling, the Court of International Trade ordered Customs and Border Protection (CBP) to remove IEEPA duties from unliquidated entries and to reliquidate certain recently liquidated entries without those duties. Because neither court provided a detailed administrative roadmap, CBP has been tasked with building a refund mechanism effectively from scratch, using its existing Automated Commercial Environment (ACE) infrastructure.

The Latest: CAPE Portal and Phase 1 Refunds

On April 20, CBP launched Phase 1 of its Consolidated Administration and Processing of Entries (CAPE) functionality inside the ACE Portal, which is now the exclusive channel for submitting IEEPA refund claims. During this first phase, Importers of Record (IORs) and authorized customs brokers can request refunds on:

• Unliquidated entries that include dutiable IEEPA Chapter 99 HTSUS codes, and
• Entries liquidated within a limited post‑liquidation window (initially 80 days, subject to evolving guidance).

CBP has also issued technical guidance and error‑code clarifications for CAPE filings, which are critical for avoiding rejections and delays. Public estimates suggest that up to $166 billion in IEEPA‑related duties could ultimately be refunded, and early press reports indicate that the first refund payments are expected to begin in May, with a general processing timeframe of roughly 60 to 90 days once a claim is accepted.

Who May Be Eligible

In general, the party entitled to a refund is the Importer of Record (IOR) that actually paid the IEEPA duties, or its properly authorized representative. In many structures, this may be:

• The U.S. operating company that imported the goods.
• A related distribution entity designated as IOR.
• In some cases, a customs broker or logistics provider that was the IOR and passed duties through to the business.

Eligibility depends on the presence of IEEPA Chapter 99 HTS codes, the liquidation status and dates of the entries, and whether the entries fall inside the defined Phase 1 scope or a later phase. Complex scenarios such as entries involving antidumping/countervailing duties, reconciliations, drawback or open protests require closer analysis before filing.

How the Refund Process Works (High Level)

CAPE filings are not “one‑click” refunds. They are structured submissions that rely on accurate entry‑level data. At a high level, the process works as follows:

1. ACE access and banking setup. CBP now issues refunds electronically via ACH linked to an ACE account, rather than by paper check. Importers must have:

• An ACE Secure Data Portal account,
• A current importer profile (CBP Form 5106), and
• ACH refund information correctly set up and tested.

2. Identify eligible entries and duties. Using ACE reports and broker data, importers or their brokers identify entries where IEEPA duties were paid, confirm liquidation status and quantify the IEEPA component of total duties.

3. Prepare the CAPE Declaration (.csv) Upload File. CBP provides an Excel‑based CAPE Upload Template inside ACE. Importers or brokers must complete that template with eligible entry numbers and associated data, then save it as a .csv file for upload. Each CAPE declaration upload file can list up to 9,999 entries, and multiple declarations can be filed.

4. Submit through ACE and respond to errors. The completed .csv file is uploaded via the CAPE tab in the ACE Portal, and the system returns acceptance or error messages referencing specific error codes. CBP’s expanded error‑code guidance now helps filers correct issues more efficiently and resubmit when necessary.

5. Liquidation/reliquidation and payment. Once a CAPE declaration is accepted and processed, CBP adjusts the entry (liquidation or reliquidation) to remove IEEPA duties and issues the corresponding refund via ACH. Current guidance and practitioner experience suggest a 60–90 day window from the date of declaration upload to refund payment, though timelines may shift as volumes increase.

While the refund process in ACE is not new, its use to provide refunds for tariffs collected, especially at this scale, is unique. The process described above reflects the current tariff refund procedure and is subject to change as the legal environment and administration of refund claims continue to evolve.

What Importers Should Do Now to Prepare

Importers who start preparing now will be better positioned to file accurate claims and receive timely refunds. Based on CBP guidance and current industry best practices, we want to highlight focusing on four main workstreams.

1. Confirm ACE and ACH Readiness

• Ensure your organization has an ACE Secure Data Portal account and that the proper entity is listed as Importer of Record.
• Verify that your importer profile includes current banking information for ACH refunds and confirm internal controls around who can access and modify those details.

2. Map Your IEEPA Exposure

• Work with your customs brokers to obtain a complete report of entries where IEEPA Chapter 99 duties were paid during the relevant period.
• For each entry, identify the entry number, IOR, IEEPA HTS codes, duty amounts and liquidation status/date.
• Flag complex categories, such as entries involving AD/CVD, reconciliation, or drawback, for legal review before including them in CAPE filings.

3. Assemble and Organize Documentation

• Gather supporting documentation now: CBP Form 7501 entry summaries, commercial invoices, packing lists, transportation records, certificates of origin and proof of duty payments.
• Confirm that internal records align with ACE and broker data. Discrepancies can trigger CAPE errors or later questions from CBP.

4. Develop a Filing Strategy with Counsel and Brokers

• Decide whether to file CAPE declarations directly or to have your customs broker submit on your behalf and clarify roles and responsibilities in writing.
• For large or complex refund amounts, consider parallel legal strategies (such as protests or protective CIT filings) to preserve rights where liquidation or statutory deadlines may limit administrative remedies.
• Establish internal review and sign‑off procedures for CAPE files to reduce error rates and help withstand potential audits.

How Legal Counsel can Help

The CAPE process is fundamentally a customs‑administration exercise, but it has significant legal, financial and documentation implications for importers of all sizes. Legal counsel can assist by:

• Evaluating eligibility and exposure across corporate groups and business lines
• Coordinating with customs brokers to ensure complete and accurate entry data
• Designing and reviewing CAPE declarations, including complex entry types
• Advising on protests, CIT strategies and contractual issues (such as who is entitled to refunds in M&A or supply‑chain contracts)

If your company has paid IEEPA duties in the last several years, now is the time to begin a structured readiness review rather than waiting for automatic relief that may never fully materialize. Early preparation can help you avoid missed windows, reduce the risk of rejected filings and accelerate the return of capital to your business.