In the wake of the Supreme Court’s ruling on Feb. 20, 2026, that regulating imports under a national emergency declared by invoking the International Emergency Economic Powers Act (IEEPA) does not include the ability to tax them, Customs and Border Protection (CBP) is standing up a new reimbursement tool for companies that paid tariffs. This centralized refund system, titled Consolidated Administration and Processing of Entries (CAPE), within the Automated Commercial Environment (ACE), began accepting certain refund requests on April 20.
Given the high volume of tariffs collected and expected to be refunded, CBP endeavored to make the process faster, more streamlined and less administratively burdensome.
There is a sense of urgency imposed by the Court of International Trade’s direction to create this system in a timely manner, which effectively means that CBP will begin accepting requests in phases while the system continues to be built out, rather than all at once.
Early observations of this new system are that it has worked smoothly overall despite high traffic. The upload and validation functioned as expected, and there were no broad system failures, though some users experienced intermittent upload and error issues.
What Do I Need To Know?
How is the CAPE system different?
Instead of processing refunds on an entry-by-entry basis for the enormous volume of data expected from applicants seeking a return of monies collected under the IEEPA tariffs, CBP will aggregate refunds across multiple entries into a single consolidated payment.
What is the expected timing to process a refund request?
The target timeline is 60-90 days after a CAPE submission is accepted. However, CBP expects to run into some necessary exceptions due to delays for entries under review, suspended/extended entries and warehouse entries.
What is the implication of the timeline provided by CBP?
Refunds will NOT be processed immediately, and the timing for multiple requests may vary significantly.
What is included in “Phase 1” of the refund requests?
Phase 1 applies to certain unliquidated entries and entries within approximately 80 days of liquidation.
What Do We Do Next?
If you haven’t already, work with your internal trade team to prepare your submission:
Prepare your submission
- Identify all eligible entries.
- Compile CSV files.
- Submit CAPE Declarations.
- Track Submission status, CBP validation and refund timing.
How the Refund Process Works
Step 1: Access & Setup
Importers/brokers must have an ACE Portal account and provide banking information for refunds.
Step 2: Submit CAPE Declaration
Upload a CSV file listing eligible entries. Importers can include up to 9,999 entries per submission; multiple submissions are allowed.
Step 3: CBP System Adjustment
ACE will remove the IEEPA tariff lines (Chapter 99) and recalculate duties automatically.
Step 4: CBP Review and Processing
CBP will validate and process the submitted entries. Those entries are liquidated or reliquidated as needed.
Step 5: Refund Issuance
Refunds will be consolidated and paid to the importer or the designated recipient as indicated on Form 4811. Although refunds will include the duties and applicable interest, they will be paid in lump sums rather than shipment-specific amounts.
Be Mindful of Key Risks
Filing errors in CSV can lead to delays or rejection of the request. Missed eligible entries could equate to lost refunds. If your requests are inaccurate, there is potential for audit/compliance scrutiny by CBP.
Importantly, the risk of miscommunication with customers could lead to disputes regarding refund entitlement and the fairness of how the company might calculate a credit to the customer.
More information from Customs and Border Protection is available here.
Although the IEEPA tariffs were ruled out of bounds by the Supreme Court, the Administration is currently undertaking investigations into the national security implications of imports from 16 trading partners for alleged manufacturing overcapacity and 60 trading partners for failure to take action against forced labor. The potential tariffs resulting from these ongoing investigations will likely create greater uncertainty for companies and customers.
If you have any questions about how the Bose Public Affairs Group Trade team can support you through the IEEPA reimbursement process or help you navigate the quickly evolving trade landscape affecting your business, please call John Cooney at (202) 349-2303 or email him at jcooney@bosepublicaffairs.com.
John Cooney is senior vice president of governmental relations at Bose Public Affairs Group, based in the firm’s Washington, D.C., office. John has extensive international experience in the semiconductor sector, having served as a vice president of a global industry association connecting 1.5 million professionals from across the semiconductor, electronics design and manufacturing supply chain sectors. John has also spent more than 20 years in public policy and government relations and has a proven record of shaping advocacy strategies and advancing client priorities at all levels of government.
Bose Public Affairs Group is a fully integrated public affairs firm dedicated to successfully navigating clients through the many pathways of political, legislative, regulatory, communications and media environments.
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