Key Takeaways:
- IEEPA tariff refunds present a meaningful recovery opportunity: CBP’s new CAPE process is launching soon but will require careful navigation.
- Eligibility and timing will impact claims: Only the importer of record can file, and Phase 1 is limited to unliquidated or recently liquidated entries.
- Early preparation is critical to avoid delays: Importers should organize data, confirm ACE/ACH readiness, and coordinate with advisors to streamline submission.
As a result of the U.S. Supreme Court’s decision in February 2026 that invalidated the International Emergency Economic Powers Act (IEEPA) tariffs, the U.S. Customs and Border Protection (CBP) has begun building a refund process that is expected to launch, at least partially, sometime this month.
These refunds are expected to create a significant financial recovery for importers. However, the process may create administrative challenges and it’s important for importers to understand the procedures and compile the appropriate data early to expedite the refund process.
Where Things Stand Today
The CBP filed its most recent declaration with the U.S. Court of International Trade on March 31, 2026, reporting on its development of a new refund workflow inside its Automated Commercial Environment (ACE). This workflow is called the Consolidation Administration and Processing of Entries (CAPE). ACE access, along with enrollment information, refund FAQs, and other resources, can be found on the CBP website here.
Who Can Request a Tariff Refund?
The party entitled to pursue the refund is generally the Importer of Record (IOR). Only the legal importer shown on the customs entry documentation can initiate the refund claim with CBP. These refunds will only be processed through ACH, as the CBP stopped issuing paper checks earlier this year.
If a business was not the IOR but had tariff costs passed on to it from the importer, the amount of downstream refunds it is entitled to will likely depend on any underlying contracts in place and individual negotiation.
Liquidation Process
Per the CBP, the CAPE system is currently designed only to process entries that are either unliquidated or liquidated within the last 80 days (which allow for reliquidation within the allowable 90-day window). The CBP estimates that this will cover approximately 63% of IEEPA paid entries.
Phase 1 of the CAPE will not include liquidated entries; however, the CBP did state that these entries will be addressed in a subsequent phase of development. No timeline was provided for this phase.
What To Do Now
Importers should consider the following actions to have all information ready when CAPE goes live:
- Register through the ACE Portal (application guide can be found on the CBP website here). If previously registered, review all information to ensure data is up to date.
- Ensure ACH banking information is included and accurate.
- Compile all entry data specific to IEEPA tariffs paid. At a minimum, data should include entry number, entry date, port of entry, duty amount paid, liquidation status, broker reference number, and importer of record number. Consider reconciling against payment records, CBP payments, or general ledger tariff entries to ensure accuracy.
- Segregate unliquidated and liquidated entries for Phase 1 submission.
- Continue to monitor CBP communications for further guidance on the launch of CAPE, submission rules, and timelines.
Lastly, importers should coordinate with their professional advisors and partners throughout the process to ensure alignment with no surprises. This includes customs brokers, legal counsel, and accountants.
How Kreischer Miller Can Support Your IEEPA Tariff Refund Strategy
Kreischer Miller can help importers navigate the IEEPA tariff refund process by providing support related to eligibility, documentation, and coordination with customs brokers and other advisors. We can also help evaluate the accounting, cash flow, and financial reporting implications of anticipated refunds. To understand how these developments may affect your organization and to position your business for an efficient, well‑supported claim, please do not hesitate to contact your Kreischer Miller relationship professional or any member of our team for guidance.
Information contained in this alert should not be construed as the rendering of specific accounting, tax, or advisory advice. Material may become outdated and anyone using this should research and update to ensure accuracy. In no event will the publisher be liable for any damages, direct, indirect, or consequential, claimed to result from use of the material contained in this alert. Readers are encouraged to consult with their advisors before making any decisions.