IEEPA Tariff Refund: How CBP’s CAPE Declaration Process Works

The U.S. Supreme Court ruled in Learning Resources Inc. v. Trump that the International Emergency Economic Powers Act (IEEPA) does not authorize unilateral import tariffs, invalidating duties that affected more than 300,000 importers. The government is now legally required to refund an estimated $170 to $175 billion in collected duties. On April 20, 2026, CBP launched CAPE (Consolidated Administration and Processing of Entries)—a new system within ACE for processing these refunds. This guide explains who qualifies, how the CAPE Declaration process works, and what importers and brokers need to do.

1. Why IEEPA Tariff Refunds Are Legally Required

The legal foundation is straightforward: when a court invalidates a tariff, the government cannot retain duties it collected under that authority. The Supreme Court’s ruling in Learning Resources Inc. v. Trump held that IEEPA does not grant the president authority to impose import tariffs unilaterally. This invalidated all IEEPA-based duties that had pushed import tax levels to their highest since the 1930s.

The Court of International Trade has consistently held that unlawfully collected duties must be returned to the importer of record. Precedent supports broad, automatic refunds—when the Generalized System of Preferences (GSP) lapsed in past years, CBP processed blanket refunds for affected entries. The IEEPA situation operates on the same principle at a dramatically larger scale.

2. Who Is Entitled to a Refund?

The IEEPA refund belongs to the importer of record (IOR). This is the entity listed on the customs entry as responsible for paying duties. It does not matter whether the importer passed tariff costs downstream to customers or absorbed them internally. The legal incidence of the tariff—who owes the duty to CBP—determines who receives the refund.

Every importer of record who paid IEEPA tariffs is entitled to a full refund, plus applicable interest. Eligibility requires that the entry:

• Includes duties assessed under Chapter 99 IEEPA HTS provisions
• Has not yet liquidated (CAPE Phase 1 covers certain unliquidated entries)
• Was filed by the IOR or an authorized customs broker

3. What Is the CAPE Declaration Process?

CAPE (Consolidated Administration and Processing of Entries) is CBP’s new system within ACE specifically designed to process IEEPA duty refunds. Phase 1 launched on April 20, 2026, covering certain unliquidated entries.

Here is how it works:

• The IOR or authorized broker submits a CAPE Declaration through the ACE Portal listing entry numbers that include IEEPA duties.
• ACE removes the applicable Chapter 99 HTS provision from those entries and recalculates the duties owed.
• Refunds are consolidated by importer of record—you receive one refund per IOR, not per entry.
• Valid refunds are issued within 60–90 days of CAPE Declaration acceptance.

CAPE replaces the need for individual post-summary corrections or protests on IEEPA entries. It is a purpose-built, bulk refund mechanism.

4. CAPE Filing Details and Limits

Important: CAPE Declarations cannot be filed through ABI (Automated Broker Interface). The ACE Portal is the only supported channel. Brokers who typically transmit through ABI must use the portal for CAPE filings.

5. Step-by-Step: How to File a CAPE Declaration

1. 1 Confirm your eligibility. Verify you are the importer of record or an authorized customs broker. Confirm that your entries include unliquidated IEEPA duties under Chapter 99 HTS provisions and fall within CAPE Phase 1 scope.
2. 2 Identify qualifying entries. Review your entry data in ACE for entries with Chapter 99 IEEPA provisions that have not yet liquidated. CustomsGenius can automate this by scanning your entry portfolio and flagging all CAPE-eligible entries.
3. 3 Prepare your CAPE Declaration CSV. Build a CSV file listing up to 9,999 entry numbers per declaration. If you have more qualifying entries, prepare multiple CSV files. CustomsGenius generates CAPE-ready CSV files automatically from your entry data.
4. 4 Submit through the ACE Portal. Log in to the ACE Portal and upload the CAPE Declaration CSV. Remember: CAPE Declarations must be filed through the ACE Portal, not through ABI.
5. 5 ACE processes the declaration. ACE removes the applicable Chapter 99 HTS provision from qualifying entries and recalculates duties. Refunds are consolidated by importer of record.
6. 6 Receive your refund. Valid refunds are issued within 60–90 days of CAPE Declaration acceptance. Amounts are subject to netting against any duties, fees, or penalties you owe CBP under 19 CFR 159.1 and 24.72.

6. Refund Timelines and Netting Rules

After CBP accepts a CAPE Declaration, valid refunds are processed within 60–90 days. However, refunds are subject to two important rules:

• Netting (19 CFR 159.1): CBP may offset your refund against any outstanding duties or fees you owe on other entries.
• Debt offset (19 CFR 24.72): The Treasury Department may reduce your refund by any federal debts you owe.

The Court of Appeals for the Federal Circuit rejected the administration’s request to pause refunds in early 2026, but the government continues pursuing procedural delays. For importers, delay means capital remains tied up in bonds and duty deposits rather than being available for operations.

7. Case Study: Import Broker Managing 200+ IORs

8. Frequently Asked Questions

What is an IEEPA tariff refund?

An IEEPA tariff refund is the return of duties collected from importers under tariffs imposed through the International Emergency Economic Powers Act. The Supreme Court ruled in Learning Resources Inc. v. Trump that IEEPA does not authorize unilateral import tariffs, making the government legally obligated to refund all collected duties—an estimated $170 to $175 billion.

What is a CAPE Declaration?

A CAPE Declaration is the filing mechanism within CBP’s ACE system for requesting IEEPA duty refunds. CAPE (Consolidated Administration and Processing of Entries) allows importers or their brokers to submit a CSV file listing entry numbers through the ACE Portal. ACE then removes the Chapter 99 HTS provision and recalculates duties, consolidating refunds by importer of record.

Who can file a CAPE Declaration?

Only the importer of record (IOR) or an authorized customs broker acting on behalf of the IOR can file a CAPE Declaration. Declarations must be submitted through the ACE Portal—they cannot be filed through ABI (Automated Broker Interface).

How many entries can I include in one CAPE Declaration?

Each CAPE Declaration can include up to 9,999 entry numbers. If you have more qualifying entries, you can submit multiple declarations. There is no limit on the number of declarations per IOR.

How long does it take to receive a refund through CAPE?

CBP issues valid refunds within 60 to 90 days after acceptance of the CAPE Declaration. Refunds are subject to netting against any amounts the importer owes CBP and debt offset rules under 19 CFR 159.1 and 24.72.

What entries qualify for CAPE Phase 1?

CAPE Phase 1, launched April 20, 2026, covers certain unliquidated entries that include IEEPA duties under Chapter 99 HTS provisions. CBP has indicated that additional phases will expand eligibility. Entries that have already liquidated may require a separate process.

Can I file a CAPE Declaration through ABI?

No. CAPE Declarations must be filed through the ACE Portal using a CSV upload. The ABI (Automated Broker Interface) does not support CAPE Declaration filing. Brokers who normally transmit through ABI must use the portal for CAPE.

What if I owe money to CBP?

IEEPA refunds are subject to netting and debt offset rules under 19 CFR 159.1 and 24.72. CBP may reduce your refund by any outstanding duties, fees, or penalties you owe before issuing payment.

9. Official Resources

• CBP: IEEPA Duty Refunds — Official CBP page on CAPE and the IEEPA refund process
• ACE Portal — Where CAPE Declarations are filed
• U.S. Customs and Border Protection (CBP) — Official CBP trade compliance portal
• Federal Register — Executive Orders and tariff notices
• Harmonized Tariff Schedule (HTS) — Official U.S. tariff classification lookup
• CustomsGenius IEEPA Tariff Codes — Chapter 99 IEEPA HTS lookup tool