IEEPA Tariff Refunds
What Importers Need to Know
On February 20, 2026, the U.S. Supreme Court struck down the IEEPA tariffs in a 6-3 ruling. A federal court has since ordered CBP to refund those duties. CBP is now on a court-imposed 45-day timeline to build the systems needed to deliver refunds at scale — and the window for importers to act is open now.
This page tracks the story in sequence — from the Supreme Court decision through the Court of International Trade proceedings, CBP's sworn commitments, and the one step most importers have not yet taken. It is updated as official information is issued. This page will continue to be updated as new developments occur.
Brandon Lord filed a second sworn declaration today (Document 39, Court No. 26-01259) providing a component-by-component progress report on CBP's new IEEPA refund system, now formally named CAPE — Consolidated Administration and Processing of Entries. As of March 11, 2026, CBP reported the following development status for CAPE's four components:
- Claim Portal (where importers/brokers submit refund requests via CSV file upload): 70% complete
- Mass Processing (automated removal of IEEPA HTS codes and duty recalculation): 40% complete
- Review & Liquidation/Reliquidation (automated scheduling and interest calculation): 80% complete — liquidation/reliquidation function complete, performance testing beginning
- Refund (electronic payment to designated bank accounts): 60% complete — refund processing functionality complete, consolidation testing underway
In response, Judge Richard K. Eaton issued an order (Document 40) confirming that CBP is making "satisfactory progress" toward timely completion. The suspension of the March 5 amended order is continued. CBP is required to file its next progress report by 2:00 p.m. EDT on Thursday, March 19, 2026.
Important scope note from today's declaration: Phase 1 of CAPE will handle the majority of formal and informal entries on which IEEPA duties were paid — but will not initially cover unliquidated entries subject to antidumping or countervailing duties, entries with ACE liquidation status of "Suspended," "Extended," or "Under Review," warehouse withdrawals, entries designated on a drawback claim, or certain other entry types. CBP will issue detailed guidance on scope and functionality as each phase is implemented. Importers with entries in these categories should consult a customs attorney.
Following the March 4–5 CIT order, CBP's Executive Director of Trade Programs Brandon Lord filed a sworn declaration on March 6 disclosing the full scale of the task: 330,566 importers, 53+ million entry summary lines, ~$166 billion collected, 20.1 million lines still unliquidated. CBP has committed to completing new ACE system functionality within 45 days. The critical finding: only 21,423 of 330,566 importers had configured their ACE Portal to receive electronic refunds. CBP has already been unable to deliver 7,700 refunds — not delayed, rejected — because importers were not configured. Contact your Western Overseas representative about your ACE Portal setup now.
Judge Richard K. Eaton of the U.S. Court of International Trade issued the order that formally set the refund process in motion: CBP is directed to liquidate IEEPA-affected entries without applying IEEPA duties — effectively ordering that those collections be reversed. This is the largest customs duty refund event in U.S. history.
Western Overseas sent clients a full briefing covering the Section 122 transition, the FedEx lawsuit at the CIT, and the guidance that IEEPA refund strategy requires a customs attorney — not just a broker. Customs brokers do not hold attorney-client privilege. Western Overseas can provide a referral list of qualified trade counsel upon request.
In Learning Resources, Inc. v. Trump, the Court ruled IEEPA does not authorize the President to impose tariffs. Chief Justice Roberts wrote the majority opinion. The Administration immediately pivoted to Section 122, imposing a 10% temporary import duty (per CBP CSMS #67844987) effective February 24. Read our full importer's guide: The Supreme Court Just Changed the Tariff Landscape →
The Supreme Court Ruling — February 20, 2026
The ruling immediately invalidated the IEEPA tariff framework, including the "reciprocal" tariffs applied to most U.S. trading partners and the border enforcement-related tariffs on goods from Canada, Mexico, and China.
What Remains in Effect
Section 232 tariffs (steel, aluminum, automobiles, auto parts, copper) and Section 301 tariffs (primarily on Chinese goods) were not affected by the ruling and remain fully in force. On the same day, the President imposed a temporary 10% import duty under Section 122 of the Trade Act of 1974, effective February 24, 2026. Per CBP CSMS #67844987, the confirmed rate is 10%.
For a complete breakdown of the ruling and its immediate operational impact, see our full importer's guide linked below. The client emails in the archive section cover the Section 122 transition and the initial guidance on refund paths.
The Court of International Trade Orders Refunds — March 5, 2026
On March 4–5, 2026, CIT Judge Richard K. Eaton issued an order directing CBP to liquidate IEEPA-affected entries without applying those duties. This order formally triggered the refund obligation — and placed CBP under a legal requirement to deliver.
The scale of what CBP was ordered to execute is without precedent in U.S. customs history.
330,566
Importers who paid IEEPA duties
Source: Brandon Lord declaration, March 6, 2026
53M+
Entry summary lines affected
~$166B
Total IEEPA duties collected
20.1M
Entry summary lines still unliquidated at time of order
CBP's Sworn Response: The Brandon Lord Declaration — March 6, 2026
⏱ The 45-day clock is running
CBP's ACE development target is approximately April 19, 2026. This page will be updated as CBP reports progress to the court or issues CSMS guidance to the trade community.
The ACE Portal Problem -
7,700 Refunds Already Rejected
Lord's declaration revealed a second challenge that directly affects whether importers receive their money. To receive electronic refunds through ACE, an importer must have configured their ACE Portal account to accept them. As of the March 6 filing, the numbers were stark:
21,423
Of 330,566 importers configured to receive electronic refunds
7,700
Refunds already rejected since February 6 — importers were not set up to receive them
⚠ Rejected — not delayed
Those 7,700 refunds were not held up by CBP processing or court timelines. They were returned because the importers on the receiving end had not completed a required technical setup step. When CBP's new ACE system goes live, it will pay the importers who are ready. Importers who are not configured will need to take additional steps.
CBP discloses full scope: 330,566 importers, 53M+ entry summary lines, ~$166 billion collected, 20.1 million lines unliquidated. ACE's 10,000-line processing cap identified. Only 21,423 importers configured to receive electronic refunds. 7,700 refunds already rejected since February 6.
CBP names its new refund system CAPE (Consolidated Administration and Processing of Entries) and reports component-level completion as of March 11:
- Claim Portal — 70%
- Mass Processing — 40%
- Review & Liquidation/Reliquidation — 80%
- Refund — 60%
Judge Eaton issues order confirming satisfactory progress. CBP's next progress report is due March 19, 2026 at 2:00 p.m. EDT.
CBP is completing development of all four CAPE components. Mass Processing (40%) and Claim Portal (70%) are the lowest-completion items as of March 11. Refund (60%) and Review & Liquidation/Reliquidation (80%) are furthest along. Judge Eaton has ordered CBP to report progress by March 19. This page will be updated when that filing is made.
Scope note: Phase 1 of CAPE will not cover entries subject to antidumping/countervailing duties, entries in "Suspended," "Extended," or "Under Review" status, warehouse withdrawals, or drawback-designated entries. If your entries fall in these categories, consult a customs attorney now.
What Importers Should Do Right Now
The IEEPA refund process is in motion — but it will not be automatic for most importers. Here is what to act on before CBP's new system goes live.
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Configure your ACE Portal account for electronic refunds.This is the most time-sensitive action. Only 21,423 of 330,566 eligible importers had completed this step as of March 6. CBP has already rejected 7,700 refunds because importers were not ready. Contact your Western Overseas representative — we can walk you through the setup.
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Monitor your entry liquidation dates.Importers generally have 180 days after entry liquidation to file a protest and request a refund. Entries that liquidate without action on file can close off your options. Your Western Overseas team can help you track liquidation status for affected entries in ACE.
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Consult a customs attorney for refund strategy.Customs brokers provide operational expertise — but we do not hold attorney-client privilege. Decisions about which entries to prioritize, whether to file protests, and how to navigate the CIT process require qualified legal counsel. Western Overseas can provide a referral list of trade attorneys upon request.
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Stay current as the CIT and CBP issue guidance.Additional court orders are expected. CBP may issue CSMS notices as ACE development progresses. This page and our client email list will be updated with official guidance as it is released.
✓ The one step that cannot wait
ACE portal configuration is the one action that is entirely in your hands — and the window before CBP's new system goes live is the time to complete it. If you paid IEEPA duties and you are not configured, contact us now.
Frequently Asked Questions
Were the IEEPA tariffs really struck down?
Yes. On February 20, 2026, the Supreme Court issued a 6-3 ruling in Learning Resources, Inc. v. Trump holding that IEEPA does not authorize the President to impose tariffs. Chief Justice Roberts wrote the majority opinion. The ruling immediately invalidated the IEEPA tariff framework.
Are IEEPA tariff refunds guaranteed for all importers?
The Court of International Trade has ordered CBP to process refunds. Whether your specific entries qualify, the timeline for your refund, and the steps required depend on your entry dates, liquidation status, and ACE portal configuration. Importers should consult a customs attorney and contact their customs broker to review their situation.
What is the ACE portal, and why does it matter for my refund?
The Automated Commercial Environment (ACE) is CBP's system for processing customs entries and payments, including refunds. To receive an electronic refund, an importer must have an active ACE portal account configured for that purpose. As of CBP's March 6 court filing, only about 21,000 of the 330,000+ importers who paid IEEPA duties had completed this step.
What is CBP's 45-day deadline?
Following the CIT's March 4–5, 2026 order, CBP committed to building new ACE system functionality to process IEEPA refunds at scale within 45 days — placing the target completion date around April 19, 2026. CBP's Executive Director of Trade Programs, Brandon Lord, described the plan in a sworn declaration filed March 6, 2026.
How long do I have to file for an IEEPA duty refund?
Generally, importers have 180 days after entry liquidation to file a protest and request a refund. This makes monitoring your entry liquidation dates time-sensitive — entries that liquidate without a protest on file can close off your options. Consult a customs attorney and your customs broker about your specific entries.
Do Section 232 or Section 301 tariffs get refunded too?
No. The Supreme Court's ruling and the CIT's refund order apply specifically to IEEPA-based tariffs. Section 232 tariffs (steel, aluminum, automobiles, auto parts, copper) and Section 301 tariffs (primarily on Chinese goods) were not affected and remain in effect.
Can my customs broker handle my refund claim?
Your customs broker plays an important role — including helping you configure your ACE portal account, monitor entry liquidation dates, and track CBP guidance. However, customs brokers do not hold attorney-client privilege. Refund strategy, legal evaluation of your options, and representation in CIT proceedings are the domain of a licensed customs attorney. Western Overseas can provide a referral list upon request.
What is Section 122, and does it replace IEEPA?
On February 20, 2026, the President also issued a Proclamation under Section 122 of the Trade Act of 1974, imposing a temporary 10% ad valorem import duty on most goods entering the United States, effective February 24, 2026. Section 122 is a separate legal authority. Its tariff does not eliminate the refund obligation on previously collected IEEPA duties. Per CBP CSMS #67844987, the confirmed rate is 10%.
Questions About Your IEEPA Refund Eligibility?
We are monitoring every development in this process — from court filings to CBP system updates. Whether you need help confirming your ACE portal configuration, reviewing entry liquidation dates, or understanding what you may be owed, your Western Overseas team is ready.
(562) 252-8600 · westernoverseas.com
Important Notice: Due to the rapidly evolving nature of tariff regulations and court proceedings, information on this page is subject to change. Any guidance provided by Western Overseas Corporation is advisory in nature and non-binding. Per the Customs Modernization Act, the legal responsibility for declaring the value, classification, and rate of duty applicable to entered merchandise rests with the importer of record. This content does not constitute legal advice. Importers should consult a qualified customs attorney for legal strategy regarding duty refunds and protest rights.
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