Key 2026 Federal Trade Update: CBP Launches AutomatedIEEPA Tariff Refund Process

• Supreme Court: IEEPA tariffs ruled unlawful—opening the door to $166

billion in refunds for imports from 2018–2025.

• CBP launches automated refund system: New CAPE tool lets importers

submit one declaration for multiple entries and receive consolidated refunds

(plus interest) in 60–90 days.

• $127 billion already in play: Phase 1 covers ~82% of affected entries.

Review your imports now—Arnold Gruber, Ltd. can help determine eligibility

and handle the process.

As we move through the early months of 2026, the attorneys at Arnold Gruber,

Ltd. remain committed to keeping businesses fully informed about significant

federal legal developments that may affect operational planning, cost structures,

and long‑range financial strategies. One of the most important changes so far this

year stems from a recent U.S. Supreme Court decision that expands access to

refunds for certain federal tariffs paid between 2018 and 2025. This ruling may

allow many companies to recover tariff payments once thought to be

unrecoverable.

In February 2026, the Supreme Court held that the International Emergency

Economic Powers Act (“IEEPA”) does not authorize the imposition of broad import

tariffs, invalidating duties that had been assessed under that statute. The Court of

International Trade subsequently directed U.S. Customs and Border Protection

(“CBP”) to implement a process to refund unlawfully collected IEEPA tariffs. CBP

has reported that approximately 330,000 importers paid an estimated $166 billion

in such duties before the ruling.

In response, CBP has launched Phase 1 of the Consolidated Administration and

Processing of Entries (“CAPE”) tool within its Automated Commercial

Environment (“ACE”) Secure Data Portal. This new system replaces what would

otherwise have been a manual, entry‑by‑entry refund process. Through CAPE,

importers and authorized customs brokers may submit a single declaration

covering multiple import entries, after which CBP will recalculate duties as if the

IEEPA tariffs had never been imposed and issue a consolidated refund amount,

including applicable interest.

Phase 1 of CAPE applies to unliquidated entries as well as entries that are no

more than 80 days past liquidation. CBP has indicated that this phase covers

approximately three‑fifths of all entries subject to IEEPA duties and allows refunds

to be issued for roughly 82 percent of affected entries, representing approximately

$127 billion in potential refunds. As of April 2026, tens of thousands of importers

had already completed the refund process, either directly or through designated

customs brokers.

CBP has advised that importers should generally expect valid refunds to be

issued within 60 to 90 days following acceptance of a properly submitted CAPE

Declaration. Participation requires an active ACE Portal account, updated banking

information, and accurate submission data. Because CAPE is a newly deployed

system, CBP has acknowledged that technical issues may arise, and some users

have already reported portal errors as testing and refinements continue.

Arnold Gruber, Ltd. can assist businesses by evaluating historical import activity,

advising on eligibility and procedural requirements, and coordinating with customs

brokers to navigate the CAPE refund process efficiently. Businesses that imported

goods or absorbed IEEPA tariff costs during the affected period should consider

reviewing their prior entries now to determine whether meaningful refunds may be

available.