CBP Provides CAPE Progress Update for IEEPA Refunds
 

On March 31, U.S. Customs and Border Protection (CBP) provided an update to the U.S. Court of International Trade regarding the development of the CAPE system within the Automated Commercial Environment (ACE) to process IEEPA refunds.

The CAPE system consists of four integrated components designed to facilitate the refund process. CBP shared the current status of development for each component as follows:

• Claim Portal: 85% complete
• Mass Processing: 60% complete
• Review and Liquidation/Reliquidation: 80% complete
• Refund Processing: 75% complete

We are receiving frequent inquiries regarding steps importers should take to prepare for the upcoming refund process. We recommend the following actions:

1. Ensure your ACE Portal account is established and active.
2. Confirm that ACH Refund Authorization is configured within your ACE Portal account.
3. Run the ES-702 report in ACE to monitor liquidation status and timing, and to assess the need for potential protective protests.
4. Run the ES-003 report to identify IEEPA duties paid (use Entry Start Date: 02/01/2025 and Entry End Date: 02/28/2026).
5. Review entry data for accuracy to ensure readiness for the refund process once it becomes available.

Key highlights from the update include:

• The initial phase of CAPE will apply only to entries that are either unliquidated or remain within the 90-day voluntary reliquidation period under 19 U.S.C. § 1501. Entries beyond this period may be addressed in a subsequent phase.
• Phase 1 will accept entries with a liquidation status of “Suspended,” “Extended,” or “Under Review.” These entries will be processed in the normal course of liquidation and may not be included in the initial refund wave. This also applies to warehouse and warehouse withdrawal entries (refunds will not be issued until withdrawals are completed), as well as Anti-Dumping and Countervailing Duty entries.
• The following entries are excluded from Phase 1:
  • Entries flagged for reconciliation
  • Entries associated with duty drawback claims
  • Entries subject to an open protest
  • Entries not filed in ACE
  • Entries without a liquidation status
  • Entries subject to Anti-Dumping or Countervailing Duties where liquidation instructions have been issued by Commerce but liquidation remains pending under 19 U.S.C. § 1504(d)
• CBP may take up to 45 days from acceptance of a CAPE Declaration to review and liquidate validated entry summaries, unless additional review is required due to compliance concerns.
• CBP has indicated that submission will require a .csv file format; however, the specific data elements have not yet been released.

Additionally, on March 27, Judge Eaton amended the suspended order to include entries “for which liquidation is final shall be reliquidated without regard to IEEPA duties,” addressing a significant concern within the trade community. CBP acknowledged this amendment and noted that Phase 1 will not include the ability to process entries with final liquidation status; this functionality is expected in a later phase.

In the interim, importers may wish to consider filing protective protests in the event that the reliquidation process is delayed or does not materialize. Pursuing legal action may also be an option to safeguard interests. Consultation with a qualified trade attorney is recommended for further guidance.

Finally, CBP has indicated that it will conduct spot checks on submitted entries to verify accuracy and may offset refunds for any identified payable errors. Importers should ensure that all supporting documentation—such as classification, valuation, and country of origin—is complete and readily available.

CV International will continue to monitor information shared by the Court of International Trade that outlines any mechanisms being developed for the refunds.

Disclaimer: This communication is provided by CV International for educational and informational purposes only and does not constitute the rendering of legal counsel or other professional services. We do not assume legal liability for the accuracy, completeness, or validity of the information contained in this communication. While CV International has made every attempt to ensure the credibility of all information included in this communication, we do not bear the legal liability for its content or that of any hyperlinks or other websites to which the presentation may refer.

John Boomhover, LCB
Director of Compliance & Customs Services
CV International, Inc.