CBP IEEPA Refund Update: $132.5 Billion Accepted for CAPE Processing as Phase 3 Is Delayed
CBP reports that approximately $132.5 billion in IEEPA duties has been accepted for CAPE processing, with $106.6 billion already certified and sent to Treasury. Meanwhile, CAPE Phase 3 has been temporarily delayed as CBP develops additional system validations.
U.S. Customs and Border Protection (CBP) has provided the U.S. Court of International Trade (CIT) with another significant update on the processing of IEEPA tariff refunds through the Consolidated Administration and Processing of Entries (CAPE) system.
According to CBP’s August 25 update, approximately 26.4 million entries containing IEEPA duties had been accepted for processing through CAPE as of 3 p.m. ET on August 21. Those entries represent approximately $132.5 billion in potential and certified refunds.
Of that amount, approximately $106.6 billion in duties and interest had been completed, certified by CBP, and sent to the U.S. Treasury for disbursement.
At the same time, CBP confirmed that the next stage of the refund program, CAPE Phase 3, has been temporarily delayed while the agency develops additional system validations.
$1.7 Billion in Refunds Awaiting ACH Information
CBP also reported that 22,170 refunds totaling approximately $1.7 billion had not yet been transmitted to Treasury because Automated Clearing House (ACH) information had not been provided.
The required banking information must be supplied by the importer of record or its authorized CBP Form 4811 designee before those payments can be transmitted.
As the volume of CAPE refunds continues to grow, accurate ACH information remains an important administrative component of the refund process.
Reconciliation-Flagged Entries Continue Through CAPE
CBP also provided an update on the CAPE functionality introduced on June 29 for certain entries flagged for reconciliation.
Under this functionality, importers and authorized customs brokers may include qualifying entries on a CAPE declaration when the entries are flagged for reconciliation but no Reconciliation Entry, Entry Type 09, has yet been filed.
Eligible entries generally include those that remain unliquidated or that liquidated within the preceding 80 days.
As of August 21, approximately 2.3 million reconciliation-flagged entries had been successfully filed in CAPE and were set for processing.
Why Has CAPE Phase 3 Been Delayed?
The most significant new development involves CAPE Phase 3, which is intended to address certain finally liquidated entries filed by plaintiffs for which the Court of International Trade has ordered reliquidation.
CBP told the CIT that deployment of Phase 3 has been temporarily delayed while the agency builds additional system validations.
According to CBP, those controls are intended to ensure that the reliquidation process makes the necessary IEEPA duty refund adjustments without inadvertently changing other duties associated with finally liquidated entries.
The additional validations are also intended to account for situations in which IEEPA duties may have been reported incorrectly on the original entries.
CBP has not announced a new deployment date for Phase 3.
Importantly, the Phase 3 delay does not affect existing CAPE functionality under Phases 1 and 2, which remain operational.
What This Means for Importers
The latest CBP figures demonstrate the significant scale of the IEEPA refund process. They also reinforce that the path to a refund can vary depending on factors such as entry status, liquidation status, reconciliation activity, CAPE eligibility, and whether required information has been properly submitted.
For companies that paid IEEPA duties, this makes it important to understand which entries may qualify for the current CAPE process and which may require a different pathway as CBP continues developing the program.
J.M. Rodgers IEEPA Duty Refund Services
J.M. Rodgers provides IEEPA Duty Refund Services to help importers evaluate their affected entries and navigate the CAPE refund process.
Our team can help:
- Review import data to identify potentially affected entries
- Evaluate entry status and potential refund eligibility
- Prepare and submit CAPE declarations through the ACE Portal when properly authorized
- Review CAPE validation results and identify issues requiring attention
- Support the refund process through payment
Because not every IEEPA-affected entry follows the same process, J.M. Rodgers can help importers understand their entry population, identify potential refund opportunities, and determine the appropriate next steps based on current CBP requirements.
Learn More About J.M. Rodgers IEEPA Duty Refund Services
J.M. Rodgers will continue monitoring developments from CBP and the Court of International Trade, including further information regarding the timing and implementation of CAPE Phase 3.