Sally Laing and Devin Sikes, Partners, International Trade, Akin Gump provided an overview on April 29 of recent legal developments affecting IEEPA tariff refunds and walked members through how U.S. Customs and Border Protection (CBP) is implementing the refund process, including what companies should expect and practical considerations for participation.

Why Refunds Are Happening

Earlier this year, the U.S. Supreme Court ruled that the President did not have authority under IEEPA to impose tariffs. While the Court did not address refunds directly, the decision set in motion a court‑supervised process to return duties that had been collected under those tariffs.

As a result, CBP is now administering refunds covering a very large universe of affected imports—more than 300,000 importers and tens of millions of entries, representing a substantial amount of duty paid.

How Refunds Are Being Processed: The CAPE System

To manage this scale, CBP has created a new administrative mechanism called CAPE (Consolidated Administration and Processing of Entries), which operates within CBP’s existing Automated Commercial Environment (ACE).

Key characteristics of CAPE include:

• Phased rollout: CBP is addressing eligible entries in stages, beginning with a “Phase 1” that focuses on less complex entries.
• Exclusive refund mechanism: CAPE is currently the only way to obtain IEEPA tariff refunds. CBP is not accepting protests or post‑summary corrections for these tariffs.
• Consolidated processing: Refunds are not handled entry‑by‑entry. Instead, CBP consolidates refunds by importer of record (or designated party) and liquidation date.

---

Phase 1: What Is Eligible Now

Phase 1 covers a significant portion of affected entries, including:

• Unliquidated entries (generally those imported within the past ~314 days), and
• Entries liquidated within the last 80 days, which CBP can effectively reopen for refund purposes.
• According to CBP, this captures roughly 60+ percent of affected entries. Some categories—such as certain warehouse or antidumping entries—may be included in Phase 1 but take longer to process.

Entries Not Covered Yet

Some entries are excluded from Phase 1 and are expected to be addressed in later phases, including:

• Entries liquidated within the preceding 80 days
• Entries flagged for reconciliation
• Drawback entries
• Entries subject to open protests
• Entries not recorded in ACE
• Certain antidumping and countervailing duty entries

CBP has not yet provided a timeline for when Phase 2 will begin, but officials have indicated future phases are coming and will expand coverage.

Who Can Submit Refund Requests

• Refund requests must be submitted by the importer of record or the original customs broker that handled the entry.
• Attorneys are not permitted to submit CAPE declarations.
• Companies must have:
  • An ACE portal account, and
  • An ACH‑enabled bank account for electronic payment of refunds (CBP no longer issues paper checks).

If a company relies entirely on a customs broker, coordination with that broker will be essential—especially if brokers are handling high volumes of refund requests.

How the Submission Process Works

CAPE submissions are relatively straightforward from a technical standpoint:

• Importers or brokers upload a CSV file listing eligible entry numbers (up to 9,900 entries per submission).
• CBP runs:
  • A file validation (format and completeness), and
  • A business‑rules validation (eligibility under Phase 1).
• Ineligible entries are rejected individually rather than invalidating the entire submission, and CBP provides feedback explaining why entries were rejected.

Once accepted, CBP removes the IEEPA tariff codes, recalculates duties, and applies standard review and liquidation procedures.

Timing, Refund Amounts, and Interest

• CBP estimates refunds will be issued within 16–90 days after acceptance, depending on complexity.
• Refunds are issued several days per week and are consolidated, not itemized by individual entry.
• Statutory interest will be paid, calculated from the date duties were paid through liquidation, at a rate of approximately 6 percent—the more favorable interest provision under U.S. law.

Open Questions and Practical Considerations

The presenters emphasized that while the rollout has been faster and smoother than many expected, some important uncertainties remain, including:

• Timing and scope of Phase 2 and later phases
• Treatment of more complex entries (e.g., reconciliation, Section 232 steel/aluminum issues)
• Potential offsets if CBP identifies unrelated unpaid duties
• How CBP prioritizes refund processing across submissions

They encouraged companies to begin by identifying “clean” entries eligible for Phase 1 and ensuring data is accurate before submission, particularly if more complex entries will require additional review later.

If you couldn’t attend the webinar live, watch the recording below to catch the highlights.

AdvaMed will continue to monitor IEEPA developments and provide member guidance as Phase 2 requirements are released. Stay turned for further updates from our team. Questions? Contact our team.

---

REMINDER: the information shared during the webinar, including the content of the slides, was current as of April 29, 2026 may be subject to change in the future. Please keep in mind that nothing discussed in this session should be considered legal advice. For any legal questions or guidance relating to your specific circumstances, you should always consult with your own legal counsel. Our goal is to provide helpful and up-to-date information, but your individual situation may require personalized legal advice.