CIT Potentially Broadens the Path for IEEPA Refunds—But the End Is Not Here Yet

Tweet

Mar. 31, 2026
By: Marvin E. McPherson

On March 27,2026, the U.S. Court of International Trade (CIT) ordered an expansion of importers eligible for IEEPA refunds through CBP’s develop(ing) CAPE system. The CIT’s order expressly authorizes CBP to reliquidate and refund IEEPA tariffs for entries beyond final liquidation (i.e., those entries that had liquidated more than 180 days earlier and no longer subject to protest). In particular, the court rejected narrower interpretations that refunds were only eligible for unliquidated entries, and entries that have liquidated within the 90 day non-final window. As discussed below, several elements of these orders could be appealed.

On March 31, 2026, CBP updated the Court on the status of the CAPE system. CBP states that the claim portal component is 85% complete. The claim portal has also been expanded to accept entry liquidation status “Suspended,” “Extended,” or “Under Review.” 

However, the below entries will still not be accepted in phase 1.

1. Entries that have been flagged for reconciliation;
2. Entry Type 09 – Reconciliation Summary; 
3. Entries designated on a drawback claim;
4. Entries covered by an open protest;
5. Entries not filed in ACE, and entries without a liquidation status in ACE; and
6. Entries subject to AD/CVD, for which DOC has issued liquidation instructions, that are pending liquidation in accordance with 19 U.S.C. § 1504(d);
7. Entries beyond final liquidation.

Thus, although CITs order expands potential avenues for recovery, it does not eliminate the need for careful legal strategy.  As stated in CBPs response there are still a large swath of entries that are left unprotected in phase 1 of the CAPE system. Furthermore, the U.S. Government has until May 4, 2026, to appeal the CIT’s original order directing CBP to issue refunds to all importers. The court’s most recent amendment to also order refunds on entries that have reached final liquidation could also be challenged.

In some ways the takeaway is not changed with this latest iteration of the order. Importers relying solely on the judge’s developing orders will not be protected if the United States appeals and elements of the orders are found unlawful. This is particularly concerning because several of the issues for a potential appeal are jurisdictional in nature. If there were an appellate decision in these, having relied on the CIT order(s) may not be a defense against rejection of refunds at all.

If you have any questions regarding the best course of action for your company, Contact any attorney  at Barnes, Richardson & Colburn, LLP.