After a delay of several weeks by Customs and Border Protection, the third phase of tariff refunds was launched on October 6.

CBP launched its Consolidated Administration and Processing of Entries system, known as CAPE, in April to process refunds court-ordered refunds for tariffs collected under the International Emergency Economic Powers Act before the U.S. Supreme Court struck down those duties in February.


CAPE Phase 3 expands refund applications to finally liquidated entries – i.e., entries for which the duties owed have been finally calculated for more than 90 days. Eligibility is limited to importers that meet both of the following requirements:

  • Submitted a valid importer of record number to CBP by July 30.
  • A named plaintiff in a pending IEEPA refund case at the CIT with an active reliquidation order.


However, an October 8 order from Judge Richard Eaton certified a class of importers, paving the way for a broad class-action lawsuit that could open refund eligibility to a wider range of businesses, particularly smaller firms without the resources to file suit individually in the trade court.

For now, there are no changes to the requirements or scope of Phase 3 refunds.

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Looking Back At IEEPA Refunds So Far

Phase 1 of the refund process was limited to unliquidated entries and entries that were within 80 days of liquidation. CBP also allowed certain entries with a status of suspended, under review or extended, as well as warehouse entries and withdrawals. This phase covered two-thirds or more of all potential refund entries with an estimated $71 billion in refunds paid.

Phase 2, estimated to cover roughly $28.7 billion in refunds, launched on June 29 for entries marked for reconciliation due to later adjustments to value, classification, origin or other import data.

Phase 3, which opened October 6, is expected to cover roughly $11 billion (about 7%) in remaining refunds. Again, this phase is restricted to importers that are current trade court plaintiffs who submitted a valid IOR by July 30. Submissions made July 31 or after must wait for specific instructions from CBP at an unspecified later date.

  • Supply Chain Dive reports that as of October 2, CAPE has sent approximately $126 billion in refunds to the U.S. Treasury Department for disbursement – more than three-quarters of the roughly $166 billion collected under IEEPA.


Get the latest U.S. tariff updates in PPAI’s tariff tracker.

Universal Refund Order Sought By Plaintiffs

CBP’s delay in launching Phase 3 highlights a sticking point in the ongoing court battle over IEEPA refunds. The administration argues that the trade court lacks the authority to issue a universal order for refunds to all companies that paid the tariffs, regardless of whether they are parties to the lawsuit that brought about the CAPE system or have filed on their own.

More than 4,000 such suits have been filed so far, and the government’s appeal of the universal refund order by the trade court is still pending.

RELATED: PPAI Research: The Tariff Effects, From Refunds To End Buyers And Operations

Tariffs continue to anchor the Trump administration’s domestic and foreign policy agenda. Since the Supreme Court invalidated the IEEPA tariffs in February, the administration has imposed several duties under various statutes, including: 

  • New Section 301 tariffs of 10% or 12.5% on imports from 60 economies, based on findings that they do not adequately prohibit the export of goods produced with forced labor.
  • An additional 50% tariff on many Canadian imports, including apparel, with no exemptions for USMCA-compliant goods, unlike previous tariffs. Certain goods, including dairy products, alcohol and motorcycles, are now subject to an import ban and may not be imported into the U.S.


PPAI will continue to monitor these developments and provide updates. Subscribe to PPAI Newslink to have these delivered straight to your inbox twice a week.