Last updated: May, 2026
On February 20, 2026, the U.S. Supreme Court issued a landmark 6–3 decision in Learning Resources, Inc. v. Trump, ruling that the International Emergency Economic Powers Act (IEEPA) does not grant the president authority to impose tariffs. The decision struck down the “fentanyl” tariffs applied to Canada, Mexico, and China, along with the broader “reciprocal” tariffs targeting dozens of additional trading partners, dismantling the legal foundation behind a major portion of the administration’s trade policy.
The financial scale is staggering. According to a U.S. Customs and Border Protection (CBP) declaration filed with the U.S. Court of International Trade, more than 333,000 importers paid approximately $166 billion in duties under the now-invalidated IEEPA tariffs. For businesses that made those payments, the Court’s ruling opens the door to one of the largest tariff recovery efforts in modern U.S. trade history.
But recovering those funds won’t be automatic. The Court ruled the tariffs unlawful, but it didn’t establish a process for returning the money. Importers seeking refunds will need to navigate administrative procedures with U.S. Customs and Border Protection, a reminder that even landmark legal victories can leave complex operational work ahead for companies in global trade.
But recovering those funds won’t be automatic, and now, timing plays a critical role in how those refunds are processed.
CAPE Phase 1 Introduces the “80-Day Rule”
The latest development in the IEEPA refund process is CBP’s rollout of CAPE Phase 1, which introduces a critical new concept: the “80-day rule.”
This rule determines not just eligibility, but how quickly and easily importers can recover duties. Under this framework entries not yet liquidated, entries liquidated within the last 80 days qualify for the fastest refund path. Entries outside this window remain eligible for refunds but require additional steps and longer processing timelines.
What the IEEPA Ruling Means for Importers
The International Emergency Economic Powers Act (IEEPA) was designed to give the president broad authority to regulate economic transactions during declared national emergencies. Historically, it has been used for sanctions and financial restrictions. In recent years, however, the law was invoked to impose sweeping tariffs on goods imported from countries including Canada, Mexico, and China.
In Learning Resources, Inc. v. Trump, the Supreme Court drew a clear distinction between regulating trade and taxing it. While IEEPA allows the president to regulate imports during a national emergency, the Court concluded that the statute does not authorize tariffs. Because tariffs function as a form of taxation, the administration had interpreted the law beyond its legal limits.
For importers, it is important to distinguish between the Court’s ruling and the evolving process of recovering duties already paid. The decision declares the tariffs unlawful and removes the legal justification for billions of dollars in collected duties, but the Supreme Court itself did not mandate a direct mechanism for returning the funds. Instead, the U.S. Court of International Trade (CIT) recently stepped in, ordering U.S. Customs and Border Protection (CBP) to process nationwide refunds for all affected entries.
However, these refunds will not arrive automatically. Rather than relying entirely on traditional, entry-by-entry filings like CBP Protests or Post-Summary Corrections, importers must pursue recovery through a new administrative framework CBP is developing called the CAPE (Consolidated Administration and Processing of Entries) system. Importers will be required to proactively submit a “CAPE Declaration” by uploading a CSV file of their affected entries through the ACE portal. Without taking these proactive steps—and ensuring the company is fully enrolled in CBP’s mandatory ACH electronic refund program—refunds may be rejected or never materialize, leaving billions of dollars with the U.S. Treasury.
Where IEEPA Tariff Refunds Stand Now
CBP is developing a new administrative framework—CAPE (Consolidated Administration and Processing of Entries)—to implement the Court of International Trade’s directive and manage the large-scale refund process. While recent updates reflect meaningful progress, they also make clear that refunds will be issued through a structured, phased rollout rather than an automatic, across-the-board return of duties.
Phase 1 scope with 80-day rule: Under this framework, CAPE Phase 1 focuses on a defined subset of entries, primarily those within CBP’s 80-day reliquidation window, including:
- Unliquidated entries
- Entries within the 90-day voluntary reliquidation window
- Recently liquidated entries
More complex scenarios such as entries involving protests, drawback claims, reconciliation, or AD/CVD, are not expected to be included in the initial phase of processing.
Under this framework, CAPE will initially focus on a defined subset of entries, including:
- Unliquidated entries
- Entries within the 90-day voluntary reliquidation window
- Recently liquidated entries
More complex scenarios—such as entries involving protests, drawback claims, reconciliation, or AD/CVD—are not expected to be included in the initial phase of processing.
CBP has further indicated that refunds will be issued in consolidated batches, potentially at the importer level, rather than through traditional entry-by-entry payments. As a result, even eligible entries may not be processed simultaneously, reinforcing that importers must actively engage with the CAPE process to ensure recovery.
What this means for importers
The latest updates signal that refund eligibility and refund timing are now two different things.
Refund Speed Now Depends on the 80-Day Window
These can be submitted through ACE using a CSV upload, and importantly, they do not require a formal protest. As a result, the typical refund timeline is relatively quick, generally around 60 to 90 days.
By contrast, claims filed outside the 80-day window fall into a slower, more complex track. They are not eligible for Phase 1 and instead require a formal protest, such as submitting CBP Form 19, or must wait for future CAPE phases. This process typically involves longer timelines and added procedural complexity.
While the Court has expanded relief to include all IEEPA-affected entries—including those that are finally liquidated—CBP’s phased implementation means:
- Some importers may receive refunds sooner (typically for newer or simpler entries)
- Others—including those relying on protests, drawback, or complex entry types—may face longer delays
- Administrative readiness (such as ACH enrollment and clean entry data) will directly impact timing
In practice, this reinforces that acting within the 80-day window is now the single biggest factor in accelerating recovery.
Determining If Your Brand Is Eligible for IEEPA Tariff Refunds
Following the Supreme Court’s decision, many U.S. importers are evaluating whether they can recover duties paid under IEEPA tariffs. Eligibility hinges on several technical factors, including how shipments were filed with customs and who held legal responsibility for paying duties.
For brands evaluating potential claims, three key questions determine where to start:
Confirm Your Brand Is the Importer of Record
The first and most important factor is whether your company is listed as the Importer of Record (IOR).
Generally, only the IOR has the legal standing to pursue refunds from CBP. This party is responsible for duty payments, customs declarations, and regulatory compliance.
To verify this, importers should review CBP Form 7501 (Entry Summary). The organization listed in the Importer of Record field is the party authorized to file refund claims.
For many ecommerce brands, this is straightforward. But in certain fulfillment models, particularly Delivered Duty Paid (DDP) arrangements, the situation can be more complicated. If a supplier, freight forwarder, or third-party logistics provider is listed as the IOR, that entity technically owns the refund claim. Any recovery for the brand would depend on commercial agreements between the parties.
Verify Your Shipments Were Subject to IEEPA Tariffs
The Supreme Court ruling only applies to tariffs imposed under IEEPA. Other major tariff programs remain fully in effect.
To determine eligibility, importers should confirm that their shipments were assessed duties tied to IEEPA-related executive orders, including the 2025 “fentanyl-related” border tariffs and broader “reciprocal” tariffs. Look for HTSUS codes in the 9903.01.XX and 9903.02.XX ranges. These are the tariff lines CBP used to assess IEEPA duties. If your entries don’t reference codes in the 9903.01.XX or 9903.02.XX ranges, the duties were likely assessed under a different authority, and those programs were not affected by the ruling. Tariffs that remain in effect include:
- Section 301 tariffs targeting Chinese goods
- Section 232 tariffs on steel and aluminum imports
- Section 122, which allows temporary import surcharges
Duties paid under those programs are not eligible for refunds tied to the IEEPA decision.
Review the Timing of Your Imports
Even if your shipments were subject to IEEPA tariffs, eligibility also depends on when the goods entered the United States and the administrative status of the import entry.
Only shipments entered between the start of the IEEPA tariff orders in early 2025 and their termination on February 24, 2026, fall within the potential refund window.
How Importers Can File for IEEPA Tariff Refunds
The appropriate recovery process now depends on both liquidation status and timing relative to the 80-day rule.
Unliquidated Entries
These entries are eligible for CAPE Phase 1 fast-track processing.These entries remain open and have not yet been finalized by CBP.
Liquidated entries
Once an entry is liquidated (typically about 314 days after entry) the duty calculation becomes final. Importers then have 180 days from the liquidation date to file a formal protest. However, under CAPE Phase 1, entries liquidated within the last 80 days may still qualify for faster recovery without requiring a protest.
Withdrawing Protests
If an importer has already filed a protest solely to seek IEEPA tariff refunds, and the entry is still within 80 days of liquidation, CBP allows the importer to withdraw the protest and instead pursue recovery through the CAPE system for faster processing.
Entries Outside the Protest Window
If the 180-day protest window has already passed, recovering those duties may require the importer to file a lawsuit and seek refunds in the U.S. Court of International Trade (CIT).
How to Prepare for CAPE: A Step-by-Step Filing Checklist
CBP is on track to begin accepting CAPE Declarations for Phase 1 refunds in May 2026. Because CAPE Phase 1 prioritizes entries within the 80-day window, early preparation directly impacts whether claims qualify for the fastest refund path.
1. Set Up or Verify an ACE Account
CAPE will be a web-based portal built directly within the Automated Commercial Environment (ACE). Active ACE portal access is a prerequisite for filing declarations and receiving CBP communications. While your customs broker can submit your IEEPA claim through ACE, you will need to add your bank account to receive the refund. Importers with entries approaching the 80-day cutoff should prioritize ACE readiness immediately to avoid missing the fast-track window.
2. Enroll in Mandatory ACH Refunds
CBP now requires all customs refunds to be issued electronically via the Automated Clearing House (ACH). Importers must confirm that their ACE portal account is enrolled in the ACH Refund program and that valid U.S. banking information is on file. If this information is missing or incorrect, CBP cannot deliver the payment — and statutory interest on that undelivered refund stops accruing. If a third party like your customs broker is designated to receive funds, verify that an active CBP Form 4811 is on file.If this information is missing or incorrect, CBP cannot deliver the payment, which can delay refunds even for entries that qualify under the 80-day fast-track window.
3. Build an IEEPA Exposure Register
Before filing, importers need a complete picture of what they paid under IEEPA tariffs. That requires assembling entry summaries (CBP Form 7501), commercial invoices, proof of payment to suppliers, and duty payment records. This documentation forms the basis of every claim and is essential for validating entries in the CAPE system.
4. Prepare a Clean CSV File
The CAPE Declaration itself is filed by uploading a CSV file (CBP will publish the template) listing all affected entry summary numbers. Importers or their authorized brokers should build and validate this file before to avoid last-minute errors.
5. Filter Out Phase 1 Exclusions
CAPE’s initial launch covers a defined subset of entries. The following entry types will not be accepted during Phase 1 and should be set aside until CBP develops additional processing capabilities:
- Unliquidated entries subject to Antidumping or Countervailing Duties (AD/CVD)
- Entries whose liquidation status is “suspended,” “extended,” or “under review”
- Warehouse withdrawals
- Entries designated on duty drawback claims
CBP has indicated that functionality for these more complex refund scenarios will be developed in a later phase. These excluded entries will typically fall outside the 80-day fast-track framework and should be managed as part of a longer-term recovery strategy.
Documentation Needed for Refund Claims
Refund filings must be supported by detailed entry records. Importers typically need documentation such as:
- Entry summaries (CBP Form 7501)
- Duty payment records
- Tariff classifications and Chapter 99 codes
- Documentation identifying the relevant IEEPA tariff lines
Much of this information can be obtained through customs brokers or through the ACE portal, managed by U.S. Customs and Border Protection.
Official CBP Resources for CAPE & IEEPA Refund Guidance
U.S. Customs and Border Protection (CBP) has published official guidance and resources to help importers understand and use the CAPE system. These are the most relevant starting points:
Tracking and Reconciling Refunds
After claims are submitted, refunds must be tracked and reconciled carefully.
Importers should maintain internal records including:
- Affected entry numbers
- Filing dates
- PSC confirmation numbers or protest identifiers
- Expected refund amounts
- Refund receipt status
CBP review timelines can vary, and refund processing may take several months or longer, depending on claim complexity.
For CAPE Phase 1 claims, importers can generally expect 60–90 day processing timelines, while protest-based recoveries may take significantly longer.
What Comes Next: Trade Policy Changes Importers Should Watch
The Supreme Court’s IEEPA ruling creates a historic refund opportunity, but it doesn’t reduce tariff risk. Policymakers retain several other authorities to impose duties—including Section 301, Section 232, and Section 122—and each has been used aggressively in recent years. Importers should expect continued shifts in tariff policy even as the IEEPA tariffs are unwound.
Meanwhile, businesses selling internationally face a new wave of regulatory changes outside the United States. The European Union will eliminate its low-value duty exemption in 2026, applying duties and taxes to all imports regardless of value. Several EU member states are also introducing new customs clearance fees on low-value shipments. For ecommerce brands and global retailers, these changes directly affect landed cost accuracy, margin forecasting, checkout conversion, and the delivery experience for EU customers.
The bottom line: global trade rules are shifting on multiple fronts simultaneously. The IEEPA decision may close one chapter, but the broader environment demands that brands maintain clear visibility into duties, taxes, and compliance requirements across every market they serve. For companies selling internationally, maintaining clear visibility into duties, taxes, compliance requirements, and customs data is critical, but building and maintaining those capabilities in-house is a heavy lift. Brands that partner with the right international ecommerce enabler can stay ahead of policy changes and respond quickly without diverting focus from growth.
For ongoing coverage of tariff developments and policy shifts, TrumpTradeTracker.com tracks the latest announcements and expert perspectives on how trade decisions are shaping global commerce.
Authored by Thomas Taggart
VP of Global Trade | Passport
Thomas Taggart is a cross-border commerce leader with more than 20 years of experience in international shipping and regulatory affairs. As the Head of Global Trade, Thomas helps ecommerce brands go global by simplifying international trade, tax, and product compliance issues. Prior to Passport, he brought international shipping solutions to market through multiple roles in UPS’s product development organization.