Update on IEEPA tariff refunds: Eligibility for certain IEEPA refunds through CBP’s CAPE portal appealed to Federal Circuit

Recent developments in the litigation challenging the Administration’s IEEPA tariffs have created new uncertainty for importers seeking refunds of duties already paid to the government.

Although the US Court of International Trade (“CIT”) has issued orders directing Customs and Border Protection (“CBP”) to refund IEEPA duties for a broad range of entries—including finalized entries—the Government appealed those rulings on June 2, 2026.  The Government argues that refunds for finally liquidated entries are available only to importers with pending actions before the CIT.

This development could have important implications for importers that paid IEEPA duties on entries that have already liquidated and become final. This alert clarifies how this appeal impacts affected parties and what to expect going forward.   

Creation of the CAPE portal to issue IEEPA refunds

Following the Supreme Court’s decision in Learning Resources, on March 4, 2026, Judge Richard Eaton, issued an order instructing the CBP to issue refunds to “[a]ll importers of record” “with respect to any and all unliquidated entries that were entered subject to the IEEPA duties.”^[1] On March 27, 2026, this order was extended by directing that “[a]ny liquidated entries for which liquidation is not final shall be reliquidated without regard to those duties[]” and [a]ny liquidated entries for which liquidation is final shall be reliquidated without regard to the IEEPA duties.”^[2]

A few weeks later, Judge Eaton issued the same order in two other pending cases that were filed in 2025 to challenge the IEEPA tariffs. The court explained that “[a]ll importers of record whose entries were subject to IEEPA duties are entitled to the benefit of the Learning Resources decision” and that Supreme Court precedents prohibiting “universal injunctions” were inapplicable to these orders because the CIT enjoys separate and exclusive jurisdiction over cases pertaining to IEEPA refunds.^[3]

Until recently, the CBP had indicated that it would comply with these court orders and expressed a willingness to refund all impacted entries—whether unliquidated, liquidated or finalized.^[4] The CBP thus began work on an Automated Commercial Environment (“ACE”) system—called Consolidated Administration and Processing of Entries (“CAPE”)—in order to process these refunds. The program was launched on April 20, 2026, allowing importers and authorized brokers to use the CAPE portal to submit IEEPA refund requests.^[5]

The CBP had stated that it would process the refunds in phases, beginning with Phase 1 on April 20, 2026, which applied to “certain unliquidated entries and certain entries within 80 days of liquidation,” leaving the “more complicated” refunds, including those involving finalized entries, to “subsequent phases.”^[6]

Despite its novelty, the CAPE portal appears to have functioned successfully thus far. As of June 5, 2026, the CBP reported that 181,155 applications for refunds had been submitted through the CAPE portal, of which 125,576 had been approved—covering about 16.74 million affected entries.^[7] According to CBP, the approved refund applications represented approximately $94.94 billion in claimed refunds, of which approximately $23.68 billion had already been paid as of early June 2026.^[8]

Recent shift in Administration’s position on IEEPA refunds

On June 2, 2026, the government appealed the April 2026 CIT orders.  The Government argued that Judge Eaton had acted beyond the scope of the CIT’s powers in issuing a universal injunction to apply to “anyone,” including parties without active claims “before the [CIT].”^[9] The CBP claimed that the remaining phases of its CAPE function would therefore apply only to “entries that are flagged for reconciliation” and subsequently, “entries that have finally liquidated and for which there is an action pending in [the CIT].”^[10]  

A few days later, at a court conference before Judge Eaton, the CBP announced its intention to roll out the remaining Phases 2 and 3 of IEEPA refunds through the CAPE portal later this summer, with Phase 2 scheduled to launch on June 29, 2026, and Phase 3 expected by the end of July. At this conference, the CBP reiterated its position that the agency would not issue refunds on finally liquidated entries to parties who have not filed a lawsuit before the CIT. 

As a result, the availability of refunds through the CAPE portal for importers of record whose entries have been finalized now appears contingent on the outcome of the Federal Circuit appeal. If the Federal Circuit agrees with the government's position, importers with finally liquidated entries may be required to have filed an active claim before the CIT in order to preserve eligibility for refunds.

Conclusion

Until the Federal Circuit resolves the scope of the CIT’s authority with respect to IEEPA refunds for non-litigants with finalized entries, affected importers of record should consider filing a claim in the CIT to preserve their ability to obtain a refund. Similarly, companies that were secondarily impacted by tariffs, such as service providers who were not paid or who provided discounts and purchasers who paid premiums, may also benefit from tracking these issues and considering whether they have an interest in  any funds that are subject to the litigation.

Withers regularly advises business owners, importers, and investors in navigating complex regulatory and financial recovery issues arising from government action, including customs and duty issues. Our team is actively monitoring the tariff regimes for updates impacting our clients and is prepared to assist individuals and companies pursue recovery through the CIT where appropriate.