IEEPA Tariff Refunds: CAPE Phase 1 Rules and Compliance Risks

Key Takeaways

• CBP will administer IEEPA duty refunds through a new ACE-based platform called Consolidated Administration and Processing of Entries (“CAPE”), beginning with a limited Phase 1 launch to start on April 20, 2026.
• Phase 1 CAPE functionality will only process certain unliquidated entries and entries within a short post‑liquidation window, with more complex and finally liquidated entries deferred to later phases.
• CAPE claim filers must certify that all relevant customs entries comply with applicable laws, so importers should conduct a targeted compliance review and analyze/adjust ACE reports before submitting refund claims.

---

On April 10, 2026, CBP announced that Phase 1 of its CAPE process for refunding International Emergency Economic Powers Act (“IEEPA”) duties is scheduled to begin on April 20, 2026.

Entries Eligible for CAPE Phase 1 Refunds

Phase 1 will focus on straightforward scenarios and will not cover all entries on which IEEPA duties were paid. CBP has indicated that Phase 1 will be limited to certain unliquidated entries and certain entries up to 80 days past liquidation, with more complicated scenarios addressed later. For instance, entries under reconciliation or drawback, entries with open protests, entries not filed in ACE, certain AD/CVD entries, and finally liquidated entries are expected to be excluded from Phase 1 and addressed in later phases or through other mechanisms.

CBP guidance estimates a 60 to 90‑day review period of CAPE claims, following acceptance of a complete, validated CAPE Declaration, assuming no compliance issues.

How the CAPE Process Works

CAPE consists of four integrated components: a Claim Portal, Mass Processing, Review and Liquidation/Reliquidation, and a Refund module, all operating within ACE to handle high volumes of affected entries.

Through the CAPE Claim Portal, only the importer of record or its authorized broker(s) will be able to submit refund requests by uploading a .CSV file listing eligible entry summaries.

CAPE instructions Phase Submissions will undergo a file and entry-specific validation process and, once validated, CAPE will remove IEEPA HTS numbers from covered entries, recalculate duties, and support liquidation or reliquidation without IEEPA duties, routing overpayments into ACE’s collections module for consolidated electronic refunds with applicable interest.

On April 14, 2026, the U.S. Court of International Trade (“CIT”) issued an order indicating that the use of CAPE is not limited to those importers who have filed a lawsuit at the CIT.

Preparing for CAPE Refund Claims

To participate in the CAPE refund process, importers of record and their authorized customs brokers must have an ACE Secure Data Portal account and must ensure that bank account information for refund recipients is up to date in ACE. CAPE Declarations will be filed in the ACE Portal by the importer or by the broker who filed the underlying entries, and refunds will be issued electronically either to the importer of record or to a third party designated via CBP Form 4811.

Because CAPE is designed to handle refund requests in consolidated batches, importers should expect that refunds will not be immediate even once Phase 1 goes live and that CBP will likely prioritize submissions that pass automated validations and do not raise compliance concerns. The staged nature of CAPE means that importers may need to sequence their claims and maintain detailed tracking of which entries are included in each CAPE Declaration, especially where multiple brokers or related entities are involved.

Compliance Risks When Filing CAPE Refund Claims

Each CAPE claim will require a certification by the importer that the entry summaries in the CAPE Declaration comply with all applicable laws. This certification presents potential exposure to penalties or enforcement if entries are later found to contain errors, such as misclassification, undervaluation, or incorrect origin.

Importers therefore should identify risks posed by any historically non‑compliant entries before including those entries in a CAPE Declaration, particularly where prior disclosures or internal reviews have not yet been completed. Companies with longstanding IEEPA‑dutiable supply chains may find that CAPE creates both an opportunity to recover significant duties and an obligation to reconcile past compliance gaps.

How to Use ACE Data to Identify Eligible Entries and Reduce CAPE Risk

Given CAPE’s reliance on .CSV uploads and automated validation, filers should proactively adjust default ACE queries to capture all of the data elements required for CAPE Declarations to pass the entry-specific validation process. Refining ACE report formats in advance can help reduce validation failures and shorten the time from filing to refund.

CAPE filers should also use ACE reporting tools to identify and screen for IEEPA entries with risk indicators. Reviewing the proper ACE reports can help confirm Phase 1 eligibility and flag entries that should be excluded from early CAPE Declarations pending further review.

How to Prepare for CAPE IEEPA Refunds and How AGG Can Help

Companies affected by IEEPA duties should inventory potentially eligible entries, mapping them to CAPE Phase 1 criteria, and decide which entries should be included in early CAPE Declarations versus deferred pending additional compliance review.

AGG’s International Trade team can assist with:

1. Eligibility and scope assessments for CAPE Phase 1 and later phases.
2. Customs compliance reviews tied to CAPE certifications.
3. ACE data mining and report customization to support CAPE uploads..
4. Strategic planning for sequencing CAPE Declarations across multiple business units or brokers.

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

 

Frequently Asked Questions About CAPE Refunds

What entries are excluded from CAPE Phase 1 refunds?

Entries involving drawback, reconciliation, protests, AD/CVD duties, or those already finally liquidated are not included in Phase 1 and will be addressed in later phases or alternative processes.

Who receives the CAPE refund payment?

Refunds are issued electronically through ACE to the importer of record or a third party designated by the importer via CBP Form 4811.

What happens if a CAPE claim fails validation?

Claims that fail automated validation must be corrected and resubmitted, which can delay processing timelines.

Will CAPE refunds include interest?

CBP has indicated that interest will be calculated on refunds in accordance with the applicable CBP regulations.