Following a U.S. Supreme Court ruling that the International Emergency Economic Powers Act (IEEPA) does not authorize tariffs, the U.S. Court of International Trade (CIT) has ordered U.S. Customs and Border Protection (CBP) to refund approximately US$165 billion in duties collected under the statute.
The ruling applies to more than 53 million import entries submitted by over 330,000 importers. In response, CBP is developing a refund mechanism known as the Consolidated Administration and Processing of Entries (CAPE), which will process claims submitted by importers.
The CAPE system includes a claim portal for submission of refund requests, automated processing to remove IEEPA duties, review and reliquidation functions, and electronic disbursement of refunds. As of March 19, 2026, system components were between 45 per cent and 80 per cent complete.
The CIT has directed CBP to liquidate all unliquidated entries without IEEPA duties and to reliquidate entries that are not considered final. However, the definition of "not final" remains under discussion, with references to both a 90-day voluntary reliquidation period and a 180-day protest window.
CBP has indicated that refunds will not be issued automatically and will require importers to submit claims with supporting documentation. The system will be implemented in phases, with initial coverage for most entries and later inclusion of entries subject to antidumping or countervailing duties and other classifications.
The CIT continues to manage multiple related cases, with more than 2,500 filings linked to IEEPA tariff disputes. A number of these cases remain stayed, while others have been reassigned for administrative coordination.
The U.S. government has not yet appealed the CIT order. The deadline for a potential appeal runs through early May 2026. If an appeal is filed, it may delay the implementation of the refund process and the distribution of funds.
Companies are reviewing the status of affected entries and preparing to use the CAPE system, including completing CBP registration requirements for electronic refunds.
Source: Skadden
