Customs and Border Protection (CBP) continues to expand its CAPE refund process for duties collected under the International Emergency Economic Powers Act (IEEPA). While recent system improvements may allow more importers to receive refunds, ongoing litigation is creating uncertainty for entries that are not currently eligible for CAPE.

As a result, importers may need to take additional steps to preserve their rights to possible IEEPA tariff refunds.

CAPE Refund Process Continues to Expand

CBP has been using the Consolidated Administration and Processing of Entries (CAPE) system to process certain IEEPA tariff refunds. CAPE is intended to streamline refund claims by allowing eligible importers to submit entries electronically rather than waiting for entry-by-entry processing.

CBP is also preparing additional CAPE phases that may cover more complex scenarios. However, not all entries are currently eligible.

Litigation Creates Uncertainty

The Department of Justice (DOJ) continues to argue that once an entry is finally liquidated, CBP may not have authority to reliquidate the entry or issue a refund without a valid importer-specific court order.

The DOJ is also challenging broad refund relief that would apply to all importers, including those that did not file their own lawsuit.

Because of this position, it is increasingly possible that some importers may need to file their own case before the Court of International Trade to secure refunds.

Why Importers Should Pay Attention

The main concern is timing.

Ongoing litigation may not be resolved before the applicable two-year statute of limitations expires for certain refund claims. In addition, it remains unclear whether filing protests will be necessary, sufficient, or both.

This is especially important for importers with:

  • Finally liquidated entries
  • Entries not eligible for CAPE
  • Entries not eligible for protest
  • Informal entries affected by IEEPA duties
  • Entries that may fall outside future CAPE phases

Protests May Still Be Important

Importers should continue to monitor liquidation dates closely.

Where appropriate, timely protests should be filed to preserve rights, especially for entries that:

  • Have not been submitted through CAPE
  • Are not currently eligible for CAPE
  • Have liquidated and remain within the protest period

However, the way CBP will ultimately handle these protests remains uncertain.

Importers Should Consult Legal Counsel

Given the DOJ’s position, importers should speak with legal counsel about whether filing a Court of International Trade action is necessary to preserve refund rights.

This may be particularly important where the importer has substantial IEEPA duties at stake and cannot rely solely on CAPE or the protest process.

Key Takeaways

  • CBP continues to expand CAPE for IEEPA tariff refunds.
  • DOJ continues to oppose broad universal refund relief.
  • Finally liquidated entries may require importer-specific court action.
  • The two-year statute of limitations may become critical.
  • Importers should monitor liquidation dates and file protests where appropriate.
  • Legal counsel should be consulted to preserve refund rights.

The IEEPA refund process remains active and evolving. Importers should not assume that all refunds will be automatic or that CAPE will cover every affected entry.