CBP has indicated that Phase III of the CAPE refund process is expected to be operational by the end of July 2026 and is being developed to address certain entries outside the scope of the currently available refund process, mainly $11 billion in “finally liquidated” entries.
Importantly, CBP and the Department of Justice continue to maintain that refunds for finally liquidated entries require an importer-specific court order. The Government has also appealed the CIT’s universal refund orders and continues to challenge refund relief for importers that have not filed their own actions before the CIT.
Although class-certification requests remain pending, the timing and scope of any class-wide relief remains uncertain. It appears more likely that the class action certification will be denied and individual orders will be issued to importers who have filed their own cases. Importers with significant IEEPA duty exposure on finally liquidated entries should prepare to file a protective CIT action to preserve potential refund rights.
How We Can Help
We are assisting importers in evaluating refund eligibility, quantifying potential recoveries, and assessing whether protests, CAPE filings, or CIT actions may be appropriate based on each company’s specific facts and entry population.
Companies wishing to discuss their exposure or potential refund opportunities should contact Jason M. Kenner or William Marshall.
