The Court of International Trade (CIT) held another hearing on June 9, 2026, regarding the ongoing IEEPA tariff refund process. The hearing followed the court’s prior order requiring the government to explain why the CIT should not lift the stay of its earlier orders directing refunds of unlawfully collected IEEPA duties.
While the court did not lift the stay at the hearing, the proceedings provided important updates regarding U.S. Customs and Border Protection’s (CBP) refund processing efforts and the next planned phases of the CAPE refund system.
CBP Continues to Process Refunds Through CAPE
CBP has confirmed that it continues to expand the Consolidated Administration and Processing of Entries (CAPE) functionality in phases.
According to CBP’s recent declaration, CAPE Phase I became available on April 20, 2026, and applies primarily to unliquidated entries and entries liquidated within 80 days of CAPE declaration acceptance.
As of June 1, 2026, CBP reported that more than 16 million entries had been processed through CAPE Phase I, with approximately $89.57 billion in potential and certified IEEPA refunds accepted for processing.
Of that amount, approximately $22.80 billion in refunds, including principal and interest, had been completed and sent to the Department of the Treasury for disbursement.
CAPE Phase II Expected for Reconciliation-Flagged Entries
One of the most significant updates involves entries flagged for reconciliation.
CBP has indicated that it expects to deploy enhanced CAPE functionality for certain reconciliation-flagged entries on June 29, 2026.
CAPE Phase II is expected to apply to entries that:
- Were flagged for reconciliation;
- Do not yet have a Type 09 reconciliation entry filed; and
- Remain unliquidated or are within 80 days of liquidation.
CBP estimates that approximately 2.8 million reconciliation-flagged entries may fall within this category, representing approximately $28.7 billion in IEEPA duties paid.
This is welcome news for importers with reconciliation-flagged entries that were not eligible for CAPE Phase I. However, Phase II will not cover every reconciliation scenario.
Entries for which a Type 09 reconciliation has already been filed, entries outside the applicable liquidation window, drawback-related entries, protested entries, and other special categories may require additional CAPE functionality or alternative handling.
CAPE Phase III Expected to Address Certain Plaintiff Entries
CBP has also indicated that, after Phase II is successfully deployed, it intends to expand CAPE functionality to cover certain entries liquidated more than 80 days before CAPE declaration acceptance.
However, based on CBP’s current position, this planned expansion is limited to entries filed by plaintiffs in pending CIT refund actions where the court has ordered reliquidation.
CBP has stated that it does not currently intend to refund IEEPA duties on entries of non-plaintiffs that liquidated beyond the 80-day period while the court’s broader refund order remains on appeal.
This means importers that have not filed litigation may continue to face uncertainty regarding finally liquidated entries that fall outside current CAPE eligibility.
Why Protest Deadlines Still Matter
The June 9 hearing and CBP’s declaration confirm that CAPE is expanding, but they also confirm that not all entries are currently eligible for refund processing.
Importers should not assume that future CAPE phases, appeals, or additional court action will automatically preserve refund rights for all affected entries.
For entries that have already liquidated, protest deadlines continue to run. In many cases, filing a timely protest may be an important step to preserve potential refund opportunities while the legal and administrative processes continue to develop.
Importers should review:
- Entries subject to IEEPA tariffs;
- Entries already refunded through CAPE;
- Entries rejected or excluded from CAPE Phase I;
- Entries flagged for reconciliation;
- Entries with Type 09 reconciliation already filed;
- Entries that have liquidated or are approaching liquidation;
- Entries approaching the 180-day protest deadline; and
- Any remaining unrecovered IEEPA duty amounts.
How TLR Can Help
TLR is actively assisting importers with identifying, tracking, and preserving potential IEEPA refund opportunities.
Our team can help by:
- Running detailed ACE reports to identify impacted entries;
- Preparing customized IEEPA duty summaries;
- Quantifying total IEEPA duties paid and refunded;
- Reviewing liquidation status across affected entries;
- Identifying reconciliation-flagged entries potentially eligible for CAPE Phase II;
- Identifying entries approaching protest deadlines;
- Preparing and filing customs protests on your behalf;
- Monitoring protest status and CBP responses;
- Providing updates regarding CAPE implementation and court developments.
Next Steps
With CAPE Phase II expected to open for certain reconciliation-flagged entries on June 29, 2026, importers should review their affected entries now and identify which entries may be eligible for upcoming refund processing.
Importers should also continue to monitor liquidation and protest deadlines for entries that remain outside current CAPE eligibility.
If you would like TLR to conduct an IEEPA refund review, provide an analysis of affected entries, or assist with protest filing services, please contact your TLR representative or email compliance@shiptlr.com.
We will continue to monitor developments and provide updates as additional information becomes available.
This communication is provided for informational purposes only and is not intended to constitute legal advice. The information contained herein reflects TLR’s understanding of current developments related to IEEPA tariff refund litigation and CBP refund procedures as of the date of publication.
Importers should consult with qualified legal counsel regarding their specific circumstances, including decisions relating to protests, litigation, refund claims, and the preservation of legal rights.
Nothing in this communication should be construed as a recommendation to pursue or refrain from any legal action.
