U.S. Customs and Border Protection will begin processing refunds in October for certain finally liquidated entries that were subject to now-defunct tariffs enacted under the International Emergency Economic Powers Act (IEEPA). The September 17, 2026 report says the tariffs were invalidated by the Supreme Court in February. It also reports that the Justice Department has appealed the court ruling. Brandon Lord, executive director of CBP's Trade Programs Directorate, said in the filing that starting Oct. 6, businesses that submitted a valid importer of record number to CBP by the end of July can seek refunds for finally liquidated entries through CAPE.
TL;DR
- -CBP will begin processing refunds on Oct. 6 for certain finally liquidated entries subject to now-defunct IEEPA tariffs, covering roughly $11.4 billion, or 6.9%, of IEEPA tariff collections.
- -Businesses that submitted a valid importer of record number to CBP by the end of July can seek refunds through CAPE; those that submitted entries after July 30, 2026, must await additional instructions, with no timeframe provided in the filing.
- -Litigation status remains a material condition: the Justice Department has appealed the court ruling, and a trade advisor has cautioned importers to confirm eligibility before acting on expected refunds.
What Changed
According to the September 17, 2026 report, the first two phases, covering certain unliquidated entries and entries flagged for reconciliation, had launched earlier in 2026. According to the filing, the third phase would handle roughly $11.4 billion, or 6.9%, of IEEPA tariffs, a category the agency had originally targeted for completion by the end of July before delaying implementation.
Eligibility and Process Details
Businesses that submitted entries after July 30, 2026, must await additional instructions, with no timeframe provided in the filing. Refund requests go through CAPE, which operates within CBP's Automated Commercial Environment (ACE) and consolidates IEEPA duty refunds, including interest, rather than processing them entry by entry.
Importers of Record (IORs) and Customs brokers are able to file a CAPE Declaration, using a Comma-Separated Values (.CSV) file, through their web-based ACE Secure Data Portal (ACE Portal) account.
Each individual CAPE Declaration has a limit of 9,999 entries, though filers may submit multiple declarations. Once CBP validates and accepts a declaration, valid IEEPA refunds are generally issued within 60 to 90 days, unless a compliance concern requires further review. Certain entries, including those that are extended, suspended, under review, or warehouse entries, maintain their liquidation status, with validated refunds issued at liquidation. All refunds are also subject to netting of over- and under-payments for the entire entry and may be offset against any legally fixed and undisputed unpaid debts to the United States.
CBP does not charge fees for processing refunds. The agency has also warned importers about fraudulent emails and notices attempting to solicit company and financial information in connection with the IEEPA refund process.
Litigation Status Remains a Material Condition
As of September 11, CAPE had accepted roughly $134.7 billion in potential and certified refunds for processing, with $122 billion sent to the Treasury Department for disbursement. The agency had paid out $22 million in IEEPA tariff refunds as of that same date.
In a LinkedIn post, Pete Mento, managing director of global trade advisory services at Baker Tilly, flagged the litigation dimension directly: "But please read the eligibility requirements before telling your CFO to start spending the refund. Your litigation status and the applicable court orders still matter." A company's position in or outside active litigation may determine whether a refund is available under the current court order.
The litigation context matters because the Justice Department has appealed a court ruling that initially directed CBP to refund unprocessed or unfinalized entries and was later expanded to include finally liquidated entries. The DOJ opposes including some finally liquidated entries, arguing the court lacks jurisdiction to issue a universal refund order for all finalized entries. According to the filing, the agency argues the order applies only to affected parties that have sued for refunds.
What Manufacturers and Importers Should Watch
For manufacturers and supply-chain teams that paid IEEPA tariffs on finally liquidated entries, October 6 is a concrete milestone. Eligibility depends on the July importer-of-record submission deadline and the company's litigation status. Teams that have not confirmed their ACE Portal account status or compiled their entry lists should do so before the window opens. Watch for CBP's formal implementation instructions, which will govern exactly which entries qualify and what documentation is required for this phase.
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