CBP Reports Continued Progress On CAPE System For IEEPA Refunds

Following Dickinson Wright’s prior updates on U.S. Customs and Border Protection’s (“CBP”) development of a refund mechanism for duties imposed under the International Emergency Economic Powers Act (“IEEPA”), there have been two significant developments in the Atmus Filtration, Inc. v. United States case before the U.S. Court of International Trade (“CIT”).  First, on March 27, the Court issued an order clarifying that the scope of its March 6 Order requiring refunds of IEEPA duties applies to i) Entries that are unliquidated; ii) Entries that are liquidated but still within the 90-day period for voluntary reliquidation under 19 U.S.C. § 1501; and now a third category, iii) Entries where liquidation is final (“March 27  Order”).  Previously, the Court’s order addressed the first two categories, leaving open the question of whether CBP was required to refund IEEPA duties for final liquidated entries.  The Court has now made clear that IEEPA duty refunds apply to entries where liquidation is final as well. 

Second, CBP submitted an additional declaration on March 31, 2026, providing further detail on the status and functionality of its refund processing system. As previously reported, CBP is developing the Consolidated Administration and Processing of Entries (“CAPE”) system within the Automated Commercial Environment (“ACE”) to administer IEEPA duty refunds.

This latest declaration (“March 31 CBP Declaration”) provides the following important updates on development progress, scope, and implementation timelines.

1. Key Development Updates
   
   CBP reports continued progress across core system functions as of March 31, 2026:
   • Claim Portal Function: 85% complete
   • Mass Processing Function: 60% complete 
   • Mass Processing will be divided up into phases.  Right now, CBP is focusing on completing Phase 1.
   • Review and Liquidation/Reliquidation: 80% complete
   • Refund Function: 75% complete
   • Notably, CBP confirmed that refunds will only be delivered via electronic payment, and importers must ensure compliance with electronic refund requirements to receive payments.
2. Revised Scope of Mass Processing Function

Specifically, CBP has modified its development approach to align with the CIT’s March 27 Order, which directed that “any liquidated entries for which liquidation is final shall be reliquidated without regard to the IEEPA duties.” In its March 31 CBP Declaration, CBP clarified that CAPE Phase 1 will be limited to processing (i) unliquidated entries and (ii) entries for which the 90-day voluntary reliquidation period under 19 U.S.C. § 1501 has not expired. Under 19 U.S.C. § 1501, CBP may reliquidate an entry within 90 days of the original liquidation, notwithstanding the filing of a protest.

CBP further confirmed that subsequent phases of CAPE are expected to expand functionality to include entries for which liquidation is final.

Accordingly, the Dickinson Wright Trade Team has provided a visual chart below summarizing the scope and timing of CAPE Phase 1 implementation:

The March 31 CBP Declaration, together with the CIT’s March 27 order, provides additional clarity on the structure and rollout of the CAPE process. CBP confirmed that CAPE will serve as the primary mechanism for administering IEEPA refunds across all entry types, with a phased implementation approach.

In light of these developments, importers should consider the following:

• Identify entries eligible for Phase 1, including unliquidated entries and those within the 90-day reliquidation window.
• Assess entry status in ACE (e.g., “Suspended,” “Extended,” or “Under Review”), including entries subject to AD/CVD and warehouse entries, as these may affect timing and processing.
• Flag entries with final liquidation, which are expected to be addressed in later CAPE phases, while continuing to monitor protest deadlines.
• Exclude ineligible entries, such as those subject to reconciliation, drawback, open protest, or lacking ACE filing or liquidation status.
• Prepare for electronic refunds and continue organizing entry data and supporting documentation in anticipation of CAPE submissions.

Importantly, CBP’s confirmation that entries subject to an open protest will not be accepted under CAPE Phase 1 may support a strategy of prioritizing CAPE submissions over protests at this stage, while continuing to monitor further guidance, particularly with respect to finally liquidated entries.

CBP’s latest update reflects steady progress, but full implementation, including processing of finally liquidated entries, will require additional development phases.

On April 1, 2026, CIT issued an order in response to the March 31 CBP Declaration, confirming that CBP is making “satisfactory progress” on all four core CAPE components and reaffirming that refunds will be issued electronically, with importers encouraged to enroll in the ACH refund program. CIT further directed CBP, as it continues CAPE development beyond Phase 1, to take into consideration certain categories of entries not fully addressed in the initial rollout, including pre-liquidation refunds for suspended entries, entries not processed through CAPE, and entries already liquidated outside the 180-day protest window. Importantly, CIT acknowledged that no resolution has yet been reached with respect to the reliquidation, through CAPE, of entries for which liquidation has become final. In light of this uncertainty, importers should continue to flag affected entries and closely monitor applicable protest deadlines under 19 U.S.C. § 1514 while the court considers how this issue will be addressed.

We will continue to monitor developments in the Atmus litigation and CBP’s implementation of CAPE, including further guidance on timing, eligibility, and filing procedures.

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