The IEEPA Tariff Refund Process Explained

The Supreme Court Ruling and What It Means

On February 20, 2026, the United States Supreme Court issued a 6-3 ruling in Learning Resources, Inc. v. Trump, holding that the International Emergency Economic Powers Act (IEEPA) of 1977 does not authorize the president to impose broad tariffs on imported goods. The majority opinion, written by Chief Justice Roberts, reasoned that tariff imposition is an exercise of the taxing power that Congress must explicitly delegate, and that IEEPA's language — permitting the president to "regulate" foreign commerce — does not include the authority to tax it through import duties.

The ruling did not merely stay the tariffs pending further review; it declared them unlawfully imposed. That distinction matters enormously for businesses, because it means the tariffs were void from the moment they exceeded IEEPA's statutory authorization. Importers who paid those duties paid them unlawfully, and the government is therefore obligated to return them.

The Court of International Trade Order

Following the Supreme Court decision, the U.S. Court of International Trade (CIT) issued a comprehensive reliquidation order on March 6, 2026, directing CBP to identify all affected entries, calculate the excess duties collected, and establish a mechanism for their return. The CIT paused enforcement briefly while CBP developed the CAPE system, then issued a supplemental order on March 12, 2026 confirming CBP's four-step refund framework and authorizing the April 20 CAPE portal launch.

The CIT order also confirmed that statutory interest — the rate set by 26 U.S.C. § 6621 — accrues on all refundable duties from the date each entry was originally liquidated. That interest is included automatically in refund calculations; importers do not need to claim it separately.

What Is CAPE and How It Sits Inside ACE

CAPE stands for Customs Automated Processing Environment. It is a new module within CBP's Automated Commercial Environment (ACE) — the primary portal U.S. importers already use to submit entry documents, pay duties, and track shipments. ACE has existed since the mid-2000s; CAPE is a new capability layered on top of the existing infrastructure.

You do not need to create a new account or register with a separate system. If you already have ACE portal access and an ACH banking profile set up for duty drawback or refund processing, you can access CAPE from within your existing ACE dashboard. The portal accepts filings in a specific CSV format that CBP published alongside the CAPE launch documentation.

The Four-Step Refund Flow

CBP has outlined the refund process in four stages:

Step 1: Claim Submission via CAPE

The importer of record (or their authorized customs broker) logs into ACE, navigates to the CAPE module, and uploads a declaration CSV listing each entry line that included IEEPA tariff surcharges. The CSV must follow CBP's published format: entry number, entry date, HTS code, IEEPA code (typically a 9903.01.xx code), the IEEPA duty amount paid, and the total value of the entry.

Each declaration can contain up to 9,999 entry lines. Importers with more entries must split their filings into multiple declarations. CBP has not announced a limit on the total number of declarations per importer.

Step 2: CBP Recalculation

After submission, CBP's automated system cross-references the declaration against its own records for each entry. It verifies that the listed IEEPA codes were actually assessed on the entries, confirms the amounts match its records, and calculates the refund including accrued interest. This step can take several weeks, particularly during the initial Phase 1 backlog.

Step 3: Liquidation or Reliquidation

For unliquidated entries, CBP will liquidate them with the IEEPA duties excluded. For entries that were previously liquidated, CBP will issue a reliquidation notice. This is the formal legal act that creates the refund obligation. The reliquidation notice also establishes the final amount including interest.

Step 4: Refund Issuance

Refunds are disbursed via ACH direct deposit to the banking account on file in your ACE portal. CBP has estimated a 60-to-90-day processing window from claim submission to refund issuance for Phase 1, though early filers may see faster turnaround as volume is lower.

What Information You Need to Gather

Before you begin the CAPE filing process, collect the following:

• CBP Form 7501 (Entry Summary) for each affected entry — this is the source of your entry numbers, HTS codes, and duty amounts
• Importer of Record (IOR) number — found in Box 26 of Form 7501; you must be the IOR to file directly
• ACE portal credentials — if you don't have access, your customs broker can file on your behalf
• ACH banking profile — must be set up in ACE before filing; refunds cannot be issued by paper check under the current CAPE framework
• IEEPA HTS codes — the 9903.01.xx codes that appear on each affected entry; see our IEEPA tariff codes guide for the full reference

Who Can File

Only the importer of record (IOR) — the entity listed on Box 26 of CBP Form 7501 — can file a CAPE claim directly. If a customs broker or freight forwarder acted as IOR on your behalf, they hold the claim rights. Many businesses that used third-party logistics providers are discovering that the IOR on their entries is a broker, not them — in those cases, coordination with the broker is required.

Licensed customs brokers may file on behalf of the true beneficial IOR under a customs power of attorney. Recovery firms that specialize in duty drawback and tariff refunds are also taking on CAPE filings — this is the "working with a partner" option we discuss in more detail in our DIY vs. expert help guide.

Common Pitfalls

• Wrong CSV format: CBP's CAPE portal is strict about column order and field formatting. A malformed CSV results in an outright rejection, not an error correction prompt. Review CBP's published template before submitting.
• Duplicate submissions: Submitting the same entry line in multiple declarations does not double the refund — it creates a processing error and delays your claim. Deduplicate your entry list before filing.
• ACH not configured: Refunds cannot be issued without an ACH profile in ACE. If yours isn't set up, configure it before filing — adding it after submission does not pause the 60-to-90-day clock.
• Wrong IOR: If you were not the importer of record, you cannot file. Don't submit under your name if a broker was listed on Form 7501 — it will be rejected during the recalculation step.
• Section 301 codes mixed in: CAPE only accepts IEEPA codes (Chapter 99 9903.01.xx). Section 301 tariffs (Chapter 99 9903.88.xx) are not refundable under this program. Including them generates a rejection.

When to Consider Working with a Recovery Partner

Large-volume importers with thousands of entry lines, importers who used multiple brokers, and businesses with complex supply chains (e.g., bonded warehouses, FTZs, first-sale valuation) may find the CAPE filing process genuinely complex. Recovery firms that specialize in duty drawback have existing ACE infrastructure and can often file more quickly and accurately than an in-house team tackling the system for the first time.

The tradeoff is cost: recovery partners typically charge a contingency fee (a percentage of the recovered amount) rather than a flat rate. For smaller refund amounts, the fee may not be worth it; for importers with six- or seven-figure refund claims, professional help often pays for itself in speed, accuracy, and reduced risk of rejection.