IEEPA Tariffs Were Ruled Unlawful. Importers Who Don't Act Will Miss the Refunds.
A U.S. Court of International Trade ruled IEEPA tariffs unlawful, and CBP stopped collecting them on February 24. Refunds are coming, but companies that skip the account setup steps won't receive them.
The refund process requires registration
CBP is building a module called CAPE (Consolidated Administration and Processing of Entries) inside the Automated Commercial Environment (ACE) system. Refunds move through four stages: claim submission, duty recalculation, liquidation review, and electronic issuance. Companies not enrolled to receive electronic payments through ACE will miss the disbursement.
This is a centralized process, not an entry-by-entry one. CBP controls the release of funds once the system goes live. Your job is to be registered and ready before that happens.
As of March 19, the CAPE portal is 73% complete. The review and liquidation component is 80% done. Refund processing functionality sits at 63%. CBP has signaled a mid-April 2026 target but has not issued a firm go-live date.
Liquidation status determines your options
Unliquidated entries and entries liquidated but not yet final qualify for administrative refunds through CAPE. Fully liquidated entries require a formal protest filed within 180 days of liquidation. After that deadline, litigation is the only remaining path.
Pull your entry records and check liquidation status for every IEEPA-impacted shipment. On some entries, the 180-day clock is already running.
One open legal question: CBP has not confirmed whether it has authority to reopen entries liquidated beyond the 180-day window under 19 U.S.C. § 1514. If you have material exposure in that category, that is a conversation for outside counsel now, not after CAPE launches.
The tax treatment changes the net benefit
When refunds arrive, the IRS treats them as taxable income if duties were previously deducted or capitalized. State conformity laws add liability in some states. Refunds may also land in a different fiscal period than the original deduction, a timing mismatch that affects loan covenants and earnings guidance if your tax team doesn't model it before the cash hits.
The gross refund amount and the net benefit after tax can be different numbers. Know which one you're working with before you communicate the upside to stakeholders.
Six steps to take now
- Confirm ACE portal access is active for your company.
- Verify enrollment for electronic refund disbursement via ACH.
- Pull every entry where IEEPA tariffs were paid and flag its liquidation status. Use HTSUS codes 9903.01.XX and 9903.02.XX to filter.
- Check the 180-day protest deadline for any fully liquidated entries.
- Brief your tax team on the income timing and state conformity implications.
- Assign someone to monitor CBP updates on the CAPE rollout schedule.
The tariff environment is not settled
IEEPA tariffs are gone, but a temporary 10% Section 122 surcharge went into effect February 24, expiring July 24, 2026 unless Congress extends it. Section 232 tariffs on steel, aluminum, and autos remain unchanged. Section 301 China tariffs are also still in place.
The refund process is one chapter in an ongoing cycle of tariff changes that continue to hit supply chains and balance sheets. Companies treating this as a one-time cleanup will miss what comes next.
At Credit Pulse, we track financial shifts that affect credit quality across supply chains. Tariff refunds can move a company's working capital position in two directions: up when the cash arrives, down if the tax team didn't model the income hit. Both moves affect borrowing capacity and covenant headroom.
Frequently Asked Questions
What's the total scope of IEEPA refunds?
More than 330,000 importers paid approximately $166 billion in IEEPA tariffs across 53 million individual entries, according to CBP filings with the Court of International Trade. That's the pool of refunds in play.
What's the eligibility window — which tariffs qualify?
Refunds cover IEEPA tariffs paid from February 4, 2025 (fentanyl tariffs) and April 2, 2025 (reciprocal tariffs) through February 24, 2026, when CBP stopped collection.
Do I need to go to court to get my money back?
Not for most importers. The CIT directed CBP to build an administrative refund process targeting mid-April 2026. If CBP misses that deadline, litigation could be triggered. Importers have until February 3, 2027 to file suit if it comes to that.
What if my entries were already fully liquidated more than 180 days ago?
This is the open question in the process. CBP has not confirmed it has authority to reopen entries finalized past the 180-day window under 19 U.S.C. § 1514. Those entries may require separate litigation or formal CBP rulemaking. If your exposure in this category is meaningful, get outside counsel involved now.
Should I file Post Summary Corrections for unliquidated entries while I wait?
No. CBP is currently denying PSC requests pending headquarters guidance. The better approach is to let entries follow the normal 314-day liquidation cycle, then file Protests if they're not automatically processed through CAPE.
How do I identify which entries were hit with IEEPA tariffs?
Filter your Entry Summary details report (ES-003) by HTSUS codes 9903.01.XX and 9903.02.XX. Those are the codes under which IEEPA tariffs were collected.
Do Section 232 or Section 301 tariffs get refunded too?
No. The Supreme Court ruling applies to IEEPA. Section 232 tariffs on steel, aluminum, and autos stay in place. Section 301 China tariffs are unchanged. Only IEEPA-specific tariffs are in scope for refunds.
What's replacing IEEPA tariffs?
A 10% import surcharge under Section 122 of the Trade Act of 1974 went into effect February 24, 2026. It expires July 24, 2026 unless Congress extends it. Exemptions cover certain critical minerals, energy products, pharmaceuticals, and USMCA articles. The administration also has Section 338 authority, which allows tariffs up to 50% on imports from countries deemed discriminatory against U.S. commerce.
What about interest on the refunded amounts?
Interest applies and should be factored into refund calculations. Include IRS interest rates when modeling expected refund amounts.
What if CAPE isn't ready by mid-April?
The mid-April date is CBP's target, not a court-ordered hard deadline. If the system isn't operational, the CIT could re-enter its original refund order or set a new compliance date. Importers who have litigation filed by February 3, 2027 preserve their right to pursue refunds through the courts if administrative channels fail.
