IEEPA Tariff Refund Update
Court of International Trade Action May Be Required – CAPE Phase 3 filing opens Oct 6th
Hello Customers, Colleagues, and Friends,
We are writing with an important and time-sensitive update regarding the recovery of duties paid under the International Emergency Economic Powers Act (“IEEPA”). Following recent developments surrounding U.S. Customs and Border Protection’s (“CBP”) refund process, the clearest path currently available for importers seeking recovery of IEEPA duties on finally liquidated entries is to initiate an individual action before the U.S. Court of International Trade (“CIT”).
CBP has advised the CIT that Phase 3 of its Consolidated Administration and Processing of Entries (“CAPE”) system will deploy October 6, 2026. Phase 3 is intended to process refunds for finally liquidated entries where the importer is a plaintiff and the CIT has specifically ordered reliquidation.
Why CIT Litigation Is Important
For entries that have reached final liquidation, CBP generally cannot simply reopen the entry administratively. A court-ordered reliquidation provides the mechanism for these entries to move through CAPE Phase 3. Recent guidance indicates that filing an individual action with the CIT remains the most direct path for importers seeking recovery on these entries. The CIT has been issuing individual reliquidation orders relatively quickly following suit. Based upon our discussions with international trade counsel, importers should generally anticipate approximately 1–3 weeks for the initial CIT process and acceptance/order necessary to proceed with the next stage of the refund process. Once the appropriate CIT action is in place, Krenz & Hannan can assist with reviewing the affected entries and filing the applicable IEEPA refund claim through the available CBP process. Costs associated with the cort filing vary depending on intl trade attorney but expect a range of $4,000-$10.000+ to file your lawsuit in the CIT.
The Time to Act Is Limited
Deadlines affecting certain entries begin approaching as early as February 2027. Waiting for a potential class action or broader refund mechanism could jeopardize an importer’s ability to recover IEEPA duties.
If you intend to pursue recovery of IEEPA tariffs, we recommend beginning the CIT filing process now rather than waiting until the January deadline.
What This Means for You
If your company paid IEEPA tariffs and has not yet initiated an action before the CIT, we strongly encourage you to review your potential exposure and discuss your options. Krenz & Hannan has been working with several international trade attorneys on IEEPA refund matters and can provide referrals to counsel familiar with the CIT filing process. Once the appropriate CIT action and reliquidation order are in place, Krenz & Hannan can assist with the subsequent customs filing and refund process. Our fees for this work will be communicated at the time of filing and will mirror our standard consulting fee structure. Importers with existing IEEPA protests should also be cautious about withdrawing those protests prematurely. Current guidance recommends maintaining IEEPA-only protests until an individual reliquidation order has been received and CAPE Phase 3 eligibility has been confirmed.
We will continue monitoring the CIT litigation, CAPE Phase 3 implementation, and CBP guidance and will provide additional updates as developments occur.
Sincerely, Your friends at Krenz & Hannan International