Customs and Border Protection (CBP) has indicated that as of October 6, 2026, certain finally liquidated entries may be submitted electronically for refunds of tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA). The refunds are expected to be processed through Phase III of CBP’s Consolidated Administration and Processing of Entries (CAPE) system, which CBP has established to implement court-ordered refunds resulting from the ongoing IEEPA tariff litigation.
Executive Director Brandon Lord provided the Phase III update as part of CBP’s response to an order issued in Freestyle World, Inc. v. US CBP, et. al., (a case currently pending before Judge Richard K. Eaton of the U.S. Court of International Trade (U.S. CIT)).
Relevant History
On August 27, 2026, Judge Eaton issued an order in Freestyle World stating that CBP would provide an update on CAPE Phase III (August 27 Order). The August 27 Order highlighted the delay in CAPE Phase III following the postponement of its originally scheduled August 20, 2026, release.
Judge Eaton acknowledged CBP’s explanation that the delay was the result of efforts to ensure that adjustments to eligible entries would be limited to the removal of IEEPA tariffs. Judge Eaton ordered a follow-up conference on September 16, 2026, for further updates.
September 15 Declaration
Ahead of the September 16, 2026, U.S. CIT conference, CBP filed a formal declaration in Freestyle World (September 15 Declaration). In the September 15 Declaration, Lord stated that CAPE Phase III is scheduled for deployment on October 6, 2026.
As stated in the August 27 Order, CAPE Phase III will be limited to only those entries for which the U.S. CIT ordered reliquidation without IEEPA tariffs. According to CBP, the initial rollout will cover finally liquidated entries for plaintiffs for whom the Court has ordered reliquidation and who submitted a valid importer of record number to CBP by July 30, 2026.
The September 15 Declaration also provided an update on CBP’s refund efforts to date. CBP reported that approximately $122 billion of tariffs and refunds had been issued as of September 11, 2026. This represents a substantial portion of the nearly $135 billion in claims accepted for processing through the first two phases of CAPE. CBP further indicated that approximately $1.3 billion in payments have not yet been transmitted as they lack Automated Clearinghouse (ACH) information.
Next Steps
For importers with entries covered by U.S. CIT reliquidation orders, the October 6 date provides the clearest indication to-date of when the electronic refund process may become available through CBP systems.
For those importers of record with finally liquidated entries, the path for refund appears, as this time, to remain limited to plaintiffs with entries subject to U.S. CIT reliquidation orders. Importers of record that have not filed suit should consider discussing their options with qualified trade counsel.
For any importers of record that have eligible entries for which refunds can be sought through the CAPE portal, please 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.
Related Insights
