On October 6, 2026, U.S. Customs and Border Protection (CBP) opened CAPE Phase III, allowing certain importers to electronically request refunds on finally liquidated entries for tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA). However, CAPE Phase III is only available to importers that filed a refund action before the U.S. Court of International Trade (CIT) and received a reliquidation order from Judge Eaton.
On October 8, 2026, Judge Richard K. Eaton of the CIT granted the plaintiff’s motion for class certification in Freestyle World, Inc. v. CBP, et. al. While the ruling does not immediately expand refund eligibility for importers with finally liquidated entries, that have not taken legal action, it could ultimately provide a path to relief. If the plaintiffs prevail, Freestyle and the members of the certified class may be able to submit refund requests for finally liquidated IEEPA tariffs through the CAPE portal.
October 6 Declaration
CBP filed a formal declaration in Freestyle World on October 6, 2026 (the Declaration). In the Declaration, Executive Director Brandon Lord confirmed that CAPE Phase III was deployed as planned in the early morning hours of October 6, 2026. As previously announced, CAPE Phase III is limited to those importers of record with finally liquidated entries for which the CIT has ordered reliquidation without IEEPA tariffs.
CBP also reported it had contacted the counsel for all plaintiffs that provided a valid importer of record number to CBP by July 30, 2026. For parties that submitted a valid importer of record number after July 30, 20206, CBP indicated it will provide additional information.
The October 6 Declaration also provided an update on CBP’s refund efforts to date. As of October 2, 2026, CBP reported that approximately $126 billion of tariffs and refunds had been transmitted to the United States Treasury for payment. CBP further indicated that approximately $1.1 billion in payments remain pending because ACH payment information has not been provided or validated.
Class Certification in Freestyle
Freestyle World, Inc. filed suit on behalf of itself and a proposed class of similarly situated importers of record that did not pursue individual IEEPA tariff refund actions before the CIT. The lawsuit seeks the same relief already granted to over 4,000 importers of records that filed individual refund actions: liquidation or reliquidation of entries without IEEPA tariffs, resulting in a refund of those duties.
Despite the Government’s opposition, Judge Eaton granted Freestyle’s motion for class certification. As a result, the lawsuit for relief will proceed with Freestyle being the named plaintiff representing itself and that of the broader certified class. If the plaintiffs ultimately prevail on the merits, Freestyle and members of the certified class could become eligible to pursue refund claims through the CAPE portal.
It is worth noting, however, the Government can appeal Judge Eaton’s order granting the class certification. Regardless of the outcome of any appeal on certification, either party may appeal any future decision on the merits, which means that though the class certification is a positive note for importers, there is still likely a long road ahead until a final determination (and potential relief for these importers).
Next Steps
For importers with entries covered by CIT reliquidation orders that provided the CBP with valid importer of record numbers by July 30, 2026, the CAPE portal appears open for processing refund submissions. For those importers that are similarly covered by CIT reliquidation orders who provided valid importer of record numbers after July 30, 2026, additional guidance from CBP is expected regarding access to the portal.
For those importers of record with finally liquidated entries not currently covered by a CIT reliquidation order, the Freestyle certification decision is an encouraging development, but does not create refunding eligibility at this time. Those importers should continue monitoring developments and consult qualified trade counsel.
Finally, for any importers of record that have eligible entries for which refunds can be sought through the CAPE portal, ensure that your ACH information is updated and/or complete.
Your Guide Forward
Cherry Bekaert established a cross-functional team of professionals to help advise and support our clients with the downstream effects when tariffs and tariff refunds impact tax, accounting, audit and financial reporting functions.
If you have questions about preserving your rights or about any other legal or trade implications that may exist, we recommend reaching out to appropriate legal counsel.
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