IEEPA Refunds: The Hard Part Begins
The IEEPA tariff refund process is moving. Phase 1 is behind us, partial refunds have already reached some importers, and CBP’s CAPE system is processing claims at a scale the government has rarely attempted in modern trade history.
But the process is not finished, and the harder phases are still ahead.
Phase 2 and Phase 3 will test whether importers, brokers, CBP, and the courts can bring order to a refund program involving millions of entries and billions of dollars. Phase 2 expands into reconciliation entries where no reconciliation filing has yet been made. Phase 3 reaches finally liquidated entries, which carry the strongest legal disputes and the most litigation risk.
Meanwhile, the U.S. government has appealed the Court of International Trade’s broad refund order, challenging both the scope of universal refunds and eligibility for importers that were never direct parties to the litigation.
That appeal is not a technicality. It could determine whether companies with finally liquidated entries receive refunds at all without taking additional legal steps.
After the courts determined that certain IEEPA tariffs were unlawful, CBP created CAPE to handle refunds electronically and in phases rather than processing entries one by one.
The phased structure reflects the legal complexity underneath. Phase 1 addressed unliquidated entries and those liquidated within a limited recent window. Phase 2 moves into reconciliation entries. Phase 3 reaches finally liquidated entries, and that is where the government’s appeal becomes most consequential.
In customs law, once an entry is finally liquidated, CBP treats the duty assessment as closed unless a valid legal path exists to reopen it. The Court of International Trade has taken a broader view. The government has pushed back. Until the appeal is resolved, importers with older or finally liquidated entries should assume that timing and eligibility may remain unsettled.
What Importers Should Do Right Now
The key question is not whether refunds are happening. They are. The key question is whether every importer will recover every eligible dollar without additional action.
Waiting is not a strategy.
CBP has made clear that refunds require valid ACH banking information in the ACE Portal. Refund banking details are separate from payment details, and refunds will be delayed or missed if that information is incomplete. Beyond ACE setup, importers need their entry data organized now, before their category opens.
The action sequence:
- Confirm ACE Portal access and active account status
- Verify ACH refund banking information is correctly entered
- Identify all affected IEEPA entries across your import history
- Separate entries by category: unliquidated, recently liquidated, reconciliation, and finally liquidated
- Coordinate with your customs broker and legal counsel, particularly on finally liquidated entries
- Monitor CBP notices, CAPE updates, and litigation developments
Finance teams should also plan around the reality that refunds will not arrive as a single event. Partial refunds come first. Reconciliation entries move through a more controlled workflow. Finally liquidated entries will be the slowest and most contested category. Build your cash flow assumptions accordingly.
Our expectation is that most eligible importers will eventually recover a substantial portion of their valid IEEPA duty payments. CAPE gives CBP the mechanism to process large volumes, and the process is already demonstrating it can move.
But it will not be clean or fast.
The government’s appeal will shape how broadly the refund obligation extends, particularly for importers that did not file protective actions at the Court of International Trade. Trade law firms are already warning that non-litigant importers with finally liquidated entries may need additional legal steps to secure full recovery.
The most likely outcome is a segmented process: straightforward entries continue to be refunded, reconciliation entries move through a structured workflow, and finally liquidated entries remain the slowest and most contested category for the foreseeable future.
PNG Worldwide’s U.S. Customs Brokerage team has been actively filing IEEPA refund claims on behalf of our customers since the process opened. To date, our team has filed claims representing tens of millions of dollars in potential IEEPA recovery.
Some customers have already received partial refunds. This remains an evolving program, and PNG Worldwide will continue to monitor CBP guidance, CAPE updates, and litigation developments. Our goal is to keep our customers informed, properly positioned, and ready to recover every dollar they are entitled to receive.
If your company imported goods subject to IEEPA tariffs and has questions about eligibility, claim status, ACE setup, or the next phases of the refund process, contact the PNG Worldwide U.S. Customs Brokerage team directly.
Phase 1 handled the easier part. Phase 2 and Phase 3 will determine whether the full scope of the refund obligation is honored and how quickly different categories of importers are paid.
For importers, the right posture is preparation.
Get your data organized. Confirm your ACE setup. Work with your customs broker. Watch the litigation. Do not wait until your entry category becomes active to do the work that should already be done.
This refund process will reward the companies that are ready.
This article is intended for informational purposes only and does not constitute legal advice. Importers should consult their customs broker and legal counsel regarding their specific circumstances and any steps necessary to protect their rights.
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