IEEPA Tariff Refund Recovery — Client Update #3

TRANSMODAL CORPORATION

IEEPA Tariff Refund Recovery — Client Update #3

Overview

On March 31, 2026, U.S. Customs and Border Protection filed the Declaration of Brandon Lord, Executive Director of Trade Programs (Document 51), with the U.S. Court of International Trade in Atmus Filtration, Inc. v. United States (Court No. 26-01259). This filing is the court-ordered progress report on CBP’s development of the Consolidated Administration and Processing of Entries (CAPE) refund system within the Automated Commercial Environment (ACE). A closed settlement conference was scheduled for 2:00 PM ET.

This update summarizes the key developments, assesses the practical impact on your refund recovery, and outlines the actions you should take now.

Important context: The Court’s refund order remains suspended to the extent it requires immediate compliance while CAPE is under development. CBP is not currently required to process refunds until CAPE is operational and the suspension is lifted. Additionally, the Court’s March 20 amended order (Document 49) expanded the refund directive to encompass all duties imposed under IEEPA, including those on imports from Brazil and India, while clarifying that the order does not address duty-free de minimis treatment under 19 U.S.C. § 1321.

CAPE Development Progress

CBP reports significant advancement across all four CAPE components since the March 19 declaration (Document 47):

Phase 1 Scope — What CAPE Will and Will Not Process

Phase 1 will cover approximately 63% of all entries for which IEEPA duties were paid or deposited. This percentage refers specifically to the share of entries CAPE Phase 1 is designed to process. It includes unliquidated entries and entries within the 90-day voluntary reliquidation window under 19 U.S.C. § 1501.

Importantly, Phase 1 will NOT process entries for which liquidation is already final. Although Judge Eaton’s March 27 amended order (Document 50) directs CBP to reliquidate even finally liquidated entries, CBP states it cannot include these in Phase 1 without delaying the entire system. Finally liquidated entries are deferred to a subsequent phase of CAPE development (see “Subsequent Phases” below).

Phase 1 Expanded Coverage

Since the prior declaration, CBP has expanded Phase 1 to accept additional entry types. However, for the categories below, CAPE will remove the IEEPA HTS codes and recalculate duties but will not liquidate or issue refunds through CAPE. Instead, these entries will be liquidated in the normal course without IEEPA duties, and refunds will follow upon liquidation:

• Entries with liquidation status of “Suspended,” “Extended,” or “Under Review”
• Entries subject to antidumping/countervailing duties (AD/CVD) with liquidation suspended pending Commerce Department instructions
• Warehouse and warehouse withdrawal entries
• Entries flagged for reconciliation and Entry Type 09 (Reconciliation Summary)
• Entries designated on a drawback claim
• Entries covered by an open protest
• Entries not filed in ACE or without a liquidation status in ACE
• AD/CVD entries where Commerce has already issued liquidation instructions pending under 19 U.S.C. § 1504(d)
• Entries for which liquidation is final (deferred to subsequent phase)
• Processing of entries for which liquidation is final
• Processing of reconciliation-flagged entries and drawback-linked entries
• Complex interest calculations involving multiple collection dates on a single entry summary
• Processing of non-ABI entries where no entry summary lines exist in ACE
• Enhanced financial reporting, security tools, and revenue enforcement for entries with outstanding non-IEEPA duty bills

Phase 1 Exclusions

The following entry types will not be accepted on a CAPE Declaration in Phase 1:

Advisory: The Protest–CAPE Conflict

The March 31 declaration creates a timing conflict that every importer with liquidated entries needs to understand. Entries covered by an open protest are excluded from CAPE Phase 1. At the same time, CAPE Phase 1 does not process finally liquidated entries. These two facts interact in ways that require careful entry-level decision-making.

If You Have Already Filed a Protest

That entry is now outside the CAPE Phase 1 pipeline. CBP has provided no guidance on how protested entries will be handled — whether they will be adjudicated through the normal protest review channel, rolled into a later CAPE phase, or addressed through some other mechanism. The protest itself remains valid and preserves your refund rights, but you should not expect automated CAPE processing for that entry in the near term.

If You Have Not Yet Filed but the 180-Day Deadline Is Approaching

File the protest. The risk of missing the 180-day protest window under 19 U.S.C. § 1514 outweighs the benefit of remaining eligible for CAPE Phase 1 — because CAPE Phase 1 does not cover finally liquidated entries anyway. An entry that has passed the 90-day voluntary reliquidation window but is still within the 180-day protest window is not eligible for CAPE Phase 1 regardless of whether you protest. Filing the protest is the only mechanism that preserves your claim.

If Your Entries Are Unliquidated or Within the 80-Day Window

Do not file a protest. These entries fall squarely within CAPE Phase 1 eligibility. CAPE Phase 1 will accept entries liquidated within the preceding 80 days, providing CBP a 10-day buffer to complete processing before the 90-day voluntary reliquidation deadline under § 1501 expires. Filing a protest would remove these entries from automated processing for no benefit. Monitor liquidation status closely and be prepared to file a CAPE Declaration when the portal opens.

The Decision Framework

For each IEEPA-affected entry, determine the current liquidation status and apply the following logic:

Bottom line: No importer should allow a protest deadline to expire in order to remain CAPE-eligible. CAPE Phase 1 does not serve entries beyond the 80-day acceptance window. When in doubt, file the protest and preserve your rights.

CAPE Filing Format — Not Yet Published

CBP has not published the required format or field specifications for the CAPE CSV upload file. The Lord declarations confirm that filers will upload a Comma-Separated Values (CSV) file listing entry summaries through a new CAPE tab in the ACE Portal, but no column definitions, field names, validation rules, or sample templates have been released. We are monitoring for CBP guidance on this and will notify you as soon as the format is available.

CAPE vs. Protest: Document Requirements

A key distinction between the CAPE refund process and the traditional protest process under 19 U.S.C. § 1514 relates to supporting documentation.

Protests generally require CBP Form 19 and may require or benefit from supporting documents — such as entry summaries (CBP Form 7501), commercial invoices, or other records — depending on the protest grounds and CBP requests.

CAPE, as described in the Lord declarations, does not appear to require importers to re-upload entry documents. The system is designed to accept a CSV file containing entry summary numbers, after which ACE internally validates that each entry exists and contains at least one IEEPA Chapter 99 HTS number. CAPE then strips the IEEPA HTS codes and recalculates duties using data already in ACE’s system of record. No provision in any of the Lord declarations references a requirement to submit or re-upload underlying entry documentation as part of a CAPE Declaration.

This is a significant procedural simplification compared to the protest pathway. However, importers should be aware that CBP has reserved the right to conduct manual review of entries for up to 45 days after accepting a CAPE Declaration, and compliance concerns could trigger further review. It remains possible that CBP could request supporting documentation on a case-by-case basis during this review window, though the declarations do not indicate this will be a standard requirement.

Key Figures from the Filing

Note: The 63% figure below refers to the share of entries CAPE Phase 1 can process. The 78% and approximately $120 billion figures refer to the share of entries filed by importers who have completed ACH electronic refund enrollment and the principal IEEPA duty amounts associated with those entries. These are different metrics measuring different things.

1. Phase 1 is designed to process approximately 63% of all entries for which IEEPA duties were paid or deposited.
2. 26,664 importers of record have completed ACH electronic refund enrollment as of March 26, 2026.
3. Those enrolled importers filed 78% of all entries for which IEEPA duty payments and/or deposits have been paid.
4. The principal amount of IEEPA duty payments and deposits for those enrolled importers’ entries is approximately $120 billion.
5. CBP will take up to 45 days from acceptance of a CAPE Declaration to review and liquidate validated entries, absent compliance concerns.
6. CAPE Phase 1 will accept entries liquidated within the preceding 80 days, providing a 10-day buffer before the 90-day voluntary reliquidation deadline under § 1501 expires.

Subsequent Phases of CAPE

CBP has identified the following capabilities for future CAPE phases, though no timeline has been provided:

Required Actions

1. Confirm ACH refund enrollment. If you have not completed electronic refund enrollment through the ACE Portal, this must be done immediately. CBP issues all refunds electronically as of February 6, 2026, absent an approved waiver or other limited exception. If you use a customs broker or third party to receive refunds on your behalf, confirm that your CBP Form 4811 designation is current and accurate. The designated third party must also have an ACE Portal account and must independently complete ACH refund enrollment.
2. Inventory your IEEPA-affected entries. Run an ACE ES-003 Entry Summary Line Tariff Details report. Filter by HTS Chapter 99 codes (9903.01.xx and 9903.02.xx) to isolate IEEPA-affected entries. Record entry numbers, liquidation status, liquidation dates, and IEEPA duty amounts. Identify which entries fall into Phase 1 (unliquidated or liquidated within the preceding 80 days) versus those that are outside the 80-day window, finally liquidated, or otherwise excluded.
3. File protests for at-risk entries. For entries that have been liquidated more than 80 days ago and are within the 180-day protest deadline under 19 U.S.C. § 1514, do not wait for CAPE. Phase 1 will not process these entries, and no timeline has been provided for subsequent phases covering finally liquidated entries. Filing a protest preserves your right to a refund regardless of CAPE’s development schedule. Note that entries with an open protest are excluded from CAPE Phase 1.
4. Monitor CAPE filing guidance. CBP has not yet published the CSV file format or portal access instructions. When released, we will assist with preparing and submitting your CAPE Declaration.

Transmodal Corporation continues to monitor all developments in this matter and will provide further updates as CBP releases additional guidance or the Court issues further orders. If you have questions about your specific entries or refund eligibility, please contact your account representative.

Transmodal Corporation

545 Island Road, Ramsey, NJ 07446

customs@transmodal.net

This communication is provided for informational purposes and does not constitute legal advice. Importers should consult with a licensed customs attorney regarding protest deadlines and litigation options.

Source Documents

Declaration of Brandon Lord, Document 51, Filed 03/31/26 (March 31 CAPE progress report)

Declaration of Brandon Lord, Document 47, Filed 03/19/26

Declaration of Brandon Lord, Document 39, Filed 03/12/26

Declaration of Brandon Lord, Document 31, Filed 03/06/26

Declaration of Brandon Lord, Document 19, Filed 03/04/26

Amended Order, Document 50, Filed 03/27/26

Amended Order, Document 49, Filed 03/20/26

Order, Document 40, Filed 03/12/26

Atmus Filtration, Inc. v. United States, Court No. 26-01259, U.S. Court of International Trade