IEEPA Tariff Refund Updates: Trade Court Says Lawsuits Required for Finally Liquidated Entries

Key Takeaways

• Court action is now required for finally liquidated entries. For older, finally liquidated entries, importers must file in the U.S. Court of International Trade to obtain specific refund relief — waiting on the Consolidated Administration and Processing of Entries (“CAPE”) alone is no longer an option.
• CAPE remains essential for most entries. Although Phase 3 finally liquidated refunds require court-approved access first, importers should continue to seek refunds on Phase 1 and Phase 2 entries through CAPE.
• Importers should rethink their tariff refund strategy. Although the Court did not address whether protests are necessary for finally liquidated entries, filing a lawsuit in the CIT now offers a more direct way to accelerate the recovery of refunds.

The U.S. Court of International Trade (“CIT”) has now given importers clearer direction on how to pursue remaining refunds of tariffs paid under the International Emergency Economic Powers Act (“IEEPA”) on “finally liquidated” entries. In orders issued July 15, 2026, the CIT indicated that importers seeking refunds on entries liquidated beyond the current CAPE refund windows must first file suit and obtain importer-specific relief from the court before they can proceed through U.S. Customs and Border Protection’s (“CBP”) CAPE system.

This development matters because it appears to eliminate the option of simply waiting for automatic refunds through CAPE for finally liquidated entries. The court has defined “finally liquidated entries” as those liquidated for more than 90 days, and it made clear that relief for those entries will extend to plaintiffs that receive court orders directing reliquidation without IEEPA duties.

Court Guidance for Finally Liquidated Entries

The CIT’s latest orders appear designed to coordinate with the expected rollout of CAPE “Phase 3,” which CBP has said will address older liquidated entries. Under that framework, importers would need to:

1. file suit at the CIT,
2. obtain an importer-specific order directing reliquidation, and then;
3. submit the required declaration through CAPE under instructions provided to counsel.

In other words, CAPE remains part of the refund mechanism, but for finally liquidated entries it is no longer enough, by itself, to wait for the system to open. The court’s message is that importers must first be plaintiffs in CIT litigation to receive the instructions needed to submit those Phase 3 claims.

Should Importers Still File CBP Protests for IEEPA Tariff Refunds?

These orders also may change the practical role of protests. Many importers had previously taken a “belt and suspenders” approach by filing both protests with CBP and lawsuits at the CIT. The new CIT orders do not explicitly state that protests are no longer necessary but did state that “[t]here was also discussion of the development of further functionality in CAPE to process refunds for entries with open protests.” Thus, entries with a pending protest may experience some functional delays in the CAPE process and should be considered in a company’s overall strategy on whether to file protests.

In short, filing a lawsuit in the CIT on finally liquidated entries offers a more direct way to accelerate the recovery of refunds.

Phase 1 and Phase 2 Entries Remain Eligible for Tariff Refunds Via CAPE Process

In recent status reports to the CIT, CBP indicated that roughly $122 billion in IEEPA tariffs have been accepted in CAPE for refund processing, and about $86 billion in refunds (duties plus interest) have been sent to the U.S. Department of Treasury for disbursement to importers.

Notwithstanding the CIT’s recent orders, importers that have entries eligible under existing CAPE Phase 1 and Phase 2 of CAPE should continue to pursue refunds through the CAPE process, in addition to seeking relief through the courts for Phase 3 (finally liquidated) entries.

What Importers Should Do Now to Preserve IEEPA Tariff Refund Rights

Companies affected by IEEPA duties should promptly:

• Identify entries that may qualify for CAPE Phase 1 or Phase 2 versus entries that are finally liquidated and likely require CIT action.
• Assess whether to file suit now to secure access to CAPE Phase 3 and avoid delays as more importers seek relief.
• Review entries for classification, valuation, origin, and other customs compliance issues before making CAPE certification.
• Coordinate litigation, protest, and CAPE strategies so that refund efforts do not create avoidable procedural or compliance problems.

How AGG Assists Importers with IEEPA Tariff Refund Litigation and CAPE Claims

AGG’s International Trade team can assist with:

1. Eligibility and scope assessments for CAPE phases including assistance with ACE Portal access.
2. Customs compliance reviews tied to CAPE certifications.
3. Representation before the U.S. Court of International Trade and filing suit to establish eligibility and to receive instructions for CAPE Phase 3 refunds on finally liquidated entries.

AGG also advises on CBP enforcement risk, prior disclosures, protests, and filings before the U.S. Court of International Trade. For more information, please contact AGG International Trade co-chairs Clinton Yu and Luis Arandia or another member of the team.

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