CAPE PHASE 1: CBP'S IEEPA TARIFF REFUND SYSTEM IS GOING LIVE

CAPE PHASE 1: CBP'S IEEPA TARIFF REFUND SYSTEM IS GOING LIVE

TRADE POLICY UPDATE | Prepared By: Rich Fleischer III, LCB | Issued: March 31, 2026

REFUNDS ARE COMING. HERE IS WHERE THINGS STAND. CBP has indicated a late April 2026 go-live for the CAPE refund system. Richard G. Fleischer Customs Brokers is targeting April 20 as our preparation deadline and is reviewing your entries now to ensure nothing eligible for Phase 1 is missed. In most cases, you will not need to take any action. We will contact you if we identify anything requiring your involvement.

BACKGROUND

When the U.S. Supreme Court struck down IEEPA-based tariffs in a 6-3 decision on February 20, 2026 (Learning Resources, Inc. v. Trump, No. 24-1287), the U.S. Court of International Trade (CIT) ordered U.S. Customs and Border Protection (CBP) to refund IEEPA duties collected on imports. The court's authority to order those refunds was expanded by Judge Richard K. Eaton's March 27, 2026 amended order in Atmus Filtration v. United States (CIT Case No. 1:26-cv-01259), which extended relief to entries where CBP has already completed its final accounting.

To process those refunds at scale, CBP has been building a new automated system called CAPE, the Consolidated Administration and Processing of Entries. On March 31, 2026, CBP filed a detailed status report with the CIT describing what Phase 1 of CAPE will and will not cover.

This advisory explains what that means for you as an importer and what RGF is doing on your behalf.

DOES THIS APPLY TO YOU?

If you imported goods into the United States that were subject to IEEPA tariffs and your broker of record is Richard G. Fleischer Customs Brokers, this advisory applies to your account.

The key question for Phase 1 eligibility is the status of your entries. You may have entries that qualify for immediate refund, entries that will be refunded later as CBP expands the system, and entries that require more time. Our team is sorting through this for you. You do not need to know the status of your entries; that is our job.

SECTION 1: WHAT IS CAPE AND WHAT DOES PHASE 1 COVER?

What CAPE Is

CAPE is a new module within CBP's automated trade systems designed to process IEEPA duty refunds at scale. Rather than requiring individual manual corrections entry by entry, CAPE accepts submissions of eligible entries, removes the IEEPA duty component, recalculates what was owed, and triggers an electronic refund.

Once CBP accepts an entry into CAPE, CBP has committed to completing its review and issuing the refund within 45 days.

To put that in concrete terms: if you paid $50,000 in IEEPA duties on a set of entries, and those entries are accepted into CAPE, CBP would issue a refund of the IEEPA portion within 45 days of acceptance, assuming no compliance issues are identified.

Which Entries Qualify for Phase 1

Phase 1 focuses on entries that have not yet been through CBP's final accounting process (called liquidation), as well as entries that were recently finalized but remain within a window during which CBP can still issue corrections.

Entries where CBP has placed the accounting process on hold (referred to as suspended, extended, or under review) will also be accepted into Phase 1. For those entries, the IEEPA refund will be issued when the entry reaches its normal conclusion, rather than on an expedited basis.

What Is Not in Phase 1

Certain categories of entries cannot be processed in Phase 1. These are entries where other open matters must be resolved before a refund can be calculated:

Entries flagged by CBP for reconciliation

Entries that are part of an active drawback claim (a tariff refund program for goods that are subsequently exported)

Entries covered by an open protest filed with CBP

Entries subject to antidumping or countervailing duty orders where Commerce has not yet cleared them for final liquidation

Entries for which no electronic trade record exists in CBP's system

Entries where CBP has completed its final accounting and the outcome is no longer adjustable (referred to as 'finally liquidated') are also not included in Phase 1. Judge Eaton's March 27, 2026 amended order extended the court's refund mandate to cover these entries, but CBP has stated it will address them in a later phase of CAPE. Do not take action on finally liquidated entries until CBP's Phase 2 guidance is available; we will update you as soon as it is.

What Comes After Phase 1

CBP has committed to expanding CAPE in subsequent phases to cover finally liquidated entries, handle entries with outstanding balances on non-IEEPA duties, and add enhanced compliance verification tools. No timeline for Phase 2 has been announced. RGF will issue an update when CBP announces next steps.

SECTION 2: WHAT RGF IS DOING ON YOUR BEHALF

Our Proactive Entry Review

We are reviewing your entries in order of release date, working to identify all entries expected to meet Phase 1 criteria before CBP opens the CAPE system. We are using April 20 as our internal preparation target, which means we aim to have preliminary eligibility assessments completed by mid-April.

This review is something only your broker of record can do on your behalf. We have access to the entry-level data and liquidation timelines needed to assess Phase 1 eligibility across your account. You do not need to request this, assign staff to it, or take any steps to initiate it. Our proactive review also means we will be positioned to submit your entries to CAPE on day one, maximizing the 45-day window for refund processing.

What You Will Hear From Us

If we identify entries that qualify for Phase 1 submission, we will contact you to confirm the details before submitting. If we identify entries where your documentation may affect the processing of your refund, we will reach out with specifics. If everything is in order, the refund process will proceed without requiring your involvement.

Documents That May Be Needed

CBP has indicated it will conduct compliance reviews as part of CAPE processing. If CBP requests additional documentation on any of your entries, you may be asked to provide: commercial invoices and packing lists supporting the declared customs value, country-of-origin documentation, or records supporting your classification.

This is not a filing requirement. It is a recommendation to have these records accessible in case CBP follows up.

Questions

We are available to answer questions about this process and what we know of it to date. Contact us at management@fleischer-chb.com or by phone at 310.671.6402.

WHAT REMAINS UNRESOLVED

As of March 31, 2026, the following have not been addressed in official CBP guidance:

The timeline for Phase 2 coverage of finally liquidated entries

The specific compliance criteria CBP will apply when reviewing entries accepted into CAPE

CAPE procedures and timelines are subject to change as the system is deployed; CBP may announce updates through official channels before go-live

Richard G. Fleischer Customs Brokers will issue a follow-up advisory as CBP provides additional guidance.

REFERENCES

Learning Resources, Inc. v. Trump, No. 24-1287 (U.S. Supreme Court, February 20, 2026)

Atmus Filtration v. United States, CIT Case No. 1:26-cv-01259 (Judge Richard K. Eaton) -- CBP status report filed March 31, 2026

This trade advisory reflects information available as of March 31, 2026. Trade regulations, executive orders, and tariff classifications are subject to frequent change. Nothing herein constitutes legal advice. Richard G. Fleischer Customs Brokers encourages all importers to consult with a licensed customs broker or qualified trade counsel regarding their specific circumstances.