IEEPA Tariff Refunds: What Importers Need to Know Before April 20

                                       

By: Justine Crotty

Partner, Tax

Key Takeaways 

• Phase 1 of CBP’s new CAPE refund system launches April 20, 2026, covering approximately 63% of affected import entries 
• Refunds are not automatic — importers must file a CAPE Declaration and enroll in ACH banking in the ACE Portal before any money moves 
• Only about 6% of eligible importers had completed ACH enrollment as of early April, putting the vast majority at risk of indefinite refund delays 
• The 180-day protest window is a hard deadline — newly liquidating entries require ongoing attention, not a one-time filing 
• Bottom Line: Importers who treat this as a passive process stand to lose hundreds of thousands — or millions — in recoverable duties. Act now. 

The largest customs refund in U.S. history is five days away, and most businesses aren’t ready for it. 

On February 20, 2026, the Supreme Court ruled 6-3 in Learning Resources, Inc. v. Trump that IEEPA does not authorize the President to impose tariffs, retroactively invalidating the tariffs collected since early 2025. U.S. Customs and Border Protection (CBP) is now required to refund an estimated $166–175 billion in duties across more than 53 million import entries. The first phase of the new refund portal — called CAPE — goes live on April 20. 

If your business imported goods between February 2025 and February 2026 and paid IEEPA-based tariffs, this is directly relevant to your bottom line.

1. What the Supreme Court Ruling Actually Did

The Court held that tariff authority is a core power of Congress, not the Executive Branch, and that IEEPA’s ambiguous statutory language cannot serve as a delegation of that power. The ruling wiped out all IEEPA-based tariffs, including fentanyl tariffs on China, Canada, and Mexico (imposed February 2025) and the broader reciprocal tariffs that followed in April 2025.  

President Trump responded by replacing the IEEPA tariffs with a 10% import surcharge under Section 122 of the Trade Act of 1974, which carries its own 150-day cap and is already facing legal challenges from 24 state attorneys general.

2. How the Court of International Trade Forced CBP to Move

Refunds don’t happen automatically just because the Supreme Court ruled. The mechanics required a separate court order. 

On March 4, 2026, Senior Judge Richard K. Eaton of the Court of International Trade issued a sweeping directive in Atmus Filtration, Inc. v. United States, ordering CBP to process refunds for all importers — not just the named plaintiffs.  By March 27, the scope had grown to cover three categories of entries: unliquidated, liquidated but not final, and even finally liquidated entries — the last of which the government is contesting. After the lead case was voluntarily dismissed in early April, the judge reissued the identical order under a new case, resetting the government’s 60-day appeal clock to approximately June 7, 2026. 

That appeal risk matters. The government has stated publicly that it does not believe every importer is automatically entitled to a refund, and that individual claims should be required. Until appellate courts weigh in, the refund program operates under real legal uncertainty.

3. Understanding the Three Entry Categories

Your refund path — and urgency — depends entirely on where your entries fall in the customs liquidation lifecycle. 

Unliquidated entries are the simplest case. CBP has not yet finalized the duty calculation on these entries. Under the CIT order, CBP will remove the IEEPA tariff codes before completing that calculation, meaning the importer either pays less at settlement or receives a refund of any overpayment. Phase 1 of CAPE handles most of these, with liquidation scheduled 45 days after your CAPE Declaration is accepted. 

Liquidated but not final entries are those in which CBP completed its duty assessment, but the 180-day statutory protest window has not yet expired. Phase 1 accepts entries within 80 days of their liquidation date, giving CBP time to reliquidate within its 90-day voluntary reliquidation window. For entries that have liquidated between 80 and 180 days ago, filing a formal protest (CBP Form 19) is the appropriate protective action at this time. 

Finally, liquidated entries — those past the 180-day window — are covered by the March 27 expanded court order but excluded from Phase 1. No timeline exists for processing these, and their recovery remains legally uncertain pending the government’s potential appeal. Importers with significant exposure in this category should consult trade counsel about filing a protective lawsuit at the CIT.

4. How CAPE Works and What You Need to Do

CBP’s new CAPE (Consolidated Administration and Processing of Entries) system is a purpose-built tool within the ACE Secure Data Portal. The filing process is straightforward — but it requires action. 

Only the IOR (importer of record) for the listed entries or the authorized customs broker that filed the entries on behalf of the IOR may file the CAPE Declaration.  ACE validates entries in two stages and processes them automatically. 

Before any refund can be issued, two technical requirements must be met: 

• An active ACE Secure Data Portal account  
• ACH refund banking enrolled within ACE  

As of early April, only about 6% of eligible importers had completed ACH enrollment. That gap represents a massive amount of unclaimed money — not because importers aren’t eligible, but because they haven’t completed the technical setup. 

Once a CAPE Declaration is accepted, refunds are expected within 60 to 90 days, consolidated by recipient and liquidation date.

5. Key Deadlines to Track

Missing these windows can eliminate your eligibility for a refund entirely. 

• April 20, 2026: CAPE Phase 1 launches at 8:00 AM EDT — file eligible declarations as soon as the portal opens 
• 80-day CAPE cutoff: Phase 1 only accepts entries liquidated within the preceding 80 days; entries beyond this window require a formal protest 
• 180-day protest deadline: A strict, non-waivable window from the date of liquidation under 19 U.S.C. § 1514 — continue monitoring and filing protests on newly liquidating entries 
• ~June 7, 2026: Government’s 60-day window to appeal the CIT refund order expires 
• June–July 2026: First Phase 1 refunds expected, 60 to 90 days post-filing 

How Wiss Can Help 

Whether you need help reviewing your import entry data, assessing your refund eligibility, or planning for the income tax and accounting implications of a recovery for your situation, the Wiss Tax Advisory team is ready to help. 

Questions? Reach out to a Wiss team member for more information or assistance.

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