IEEPA tariff refunds: how the CBP CAPE process works and what procurement should do (2026 guide)
After the Supreme Court struck down the IEEPA tariffs, CBP opened CAPE to refund them. Who can file, which entries qualify, how refunds are paid, and how procurement can recover surcharges suppliers passed through.
Key takeaways
- The Supreme Court ruled in February 2026 that certain IEEPA tariffs were unlawful; about 330,000 importers paid an estimated $166 billion of them.
- CBP's CAPE tool in the ACE portal launched Phase 1 on April 20, 2026 for unliquidated entries and entries liquidated within the prior 80 days.
- Only the importer of record or its customs broker can file, and refunds go by ACH with interest.
- If your suppliers were the importers and passed the duties to you, you may be able to negotiate credits.
- Entries that are finally liquidated, under protest or on drawback claims are excluded from Phase 1.
In this guide
Background
In February 2026, the Supreme Court held that certain tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were unlawful. The Court of International Trade then required a refund process covering all importers, not just those that sued. About 330,000 importers paid an estimated $166 billion in IEEPA duties across more than 53 million entries.
Refunds are already showing up in company results: Levi’s recorded about $80 million in one quarter.
How CAPE works
CBP built CAPE (Consolidated Administration and Processing of Entries) into the ACE portal and launched Phase 1 on April 20, 2026.
| Step | What happens |
|---|---|
| 1. Prepare | Confirm entries were filed in ACE with a liquidation status, and banking details are on file in ACE |
| 2. Build the list | Use CBP’s CSV template to list entry numbers; up to 9,999 per declaration, with no supporting documents needed |
| 3. Submit | The importer of record or its filing broker uploads a CAPE Declaration in ACE |
| 4. File-level checks | ACE confirms the submitter, the entry list and formatting; a failure rejects the whole file |
| 5. Entry-level checks | ACE confirms each entry exists, declares a dutiable IEEPA Chapter 99 code and isn’t duplicated; a failure rejects only that entry |
| 6. Refund | Approved refunds are combined into one ACH payment with statutory interest |
Which entries qualify in Phase 1
Included: certain unliquidated entries, and certain entries liquidated within 80 days of the CAPE submission date.
Excluded from Phase 1 (some may be handled in later phases or by other remedies):
- Entries flagged for reconciliation, and reconciliation summaries
- Entries on a drawback claim
- Entries under an open protest
- Entries not filed in ACE or without an ACE liquidation status
- Certain antidumping and countervailing duty entries pending liquidation
- Entries with final liquidation
Timing matters: entries age out of the 80-day window as they liquidate, so filing early protects more of them.
Where procurement comes in
Most procurement teams don’t file customs entries, but they can affect how much of the refund their company keeps.
If your company is the importer of record:
- Ask trade compliance or your customs broker for a list of entries with IEEPA duties and their liquidation status.
- Confirm CAPE declarations have been filed for every eligible entry, and track rejections.
- Agree with finance how refunds are booked and whether any go back to customers under your sales contracts.
If your suppliers were the importers of record:
- List suppliers that added tariff surcharges or price increases tied to IEEPA duties in 2025 and early 2026.
- Ask whether they filed CAPE claims and what they expect to recover.
- Review contracts for clauses that require duty savings or refunds to be passed back.
- Negotiate credits, especially where surcharges were itemized separately.
A simple supplier recovery tracker
| Supplier | IEEPA surcharge billed | Supplier was importer? | Refund claimed? | Contract clause | Credit agreed |
|---|---|---|---|---|---|
| Example Supplier A | $250,000 | Yes | Yes | Pass-back required | Pending |
| Example Supplier B | $80,000 | No (we imported) | N/A | N/A | Claim filed by us |
The figures are placeholders; build the table from your own invoices.
What IEEPA refunds don’t change
The IEEPA tariffs were replaced by other measures, including a temporary Section 122 surcharge that expired July 24, 2026, the Section 301 forced-labor tariffs on 60 economies, and expanded Section 232 tariffs. A refund for past duties doesn’t mean current landed costs are falling.
This guide is general information, not legal advice. Consult your customs broker or trade counsel about specific entries.
Questions procurement teams are asking
What is CAPE?
CAPE (Consolidated Administration and Processing of Entries) is a U.S. Customs and Border Protection tool in the ACE portal for refunding IEEPA tariffs. Phase 1 launched April 20, 2026.
Who can request an IEEPA tariff refund?
The importer of record, or the customs broker that filed the entry summaries on its behalf.
Which entries qualify for CAPE Phase 1?
Certain unliquidated entries and entries liquidated within 80 days of the CAPE submission. Entries under reconciliation, drawback or open protest, entries not filed in ACE, certain AD/CVD entries and finally liquidated entries are excluded from Phase 1.
Do IEEPA refunds include interest?
Yes. Approved refunds are consolidated into a single payment including applicable statutory interest, paid electronically by ACH.
Can we get refunds if our supplier paid the tariffs?
Only the importer of record can claim from CBP. If your supplier was the importer and passed the duty to you, recovering it depends on your contract and negotiation.
How we wrote this guide
This guide draws on 3 sources, listed below, and on our own reporting. It was last reviewed on October 14, 2026 and is updated when rules or market conditions change. It is general guidance, not legal or financial advice. See our editorial standards.
