IEEPA Refunds and CAPE Declaration: What Importers Need to Know in 2026

Introduction: A New Process for IEEPA Refunds

As of April 20, 2026, importers have a more defined — though still evolving — pathway to recover certain duties paid under the International Emergency Economic Powers Act.

With the rollout of the CAPE Declaration, the process is becoming more structured, moving away from fragmented, entry-by-entry handling toward a more centralized model. At the same time, the process remains complex, with new requirements, system limitations, and coordination challenges that importers must navigate carefully.

This guide provides a practical overview of IEEPA refunds, explains how CAPE works, clarifies who can apply, and outlines the most common challenges importers are encountering today.

What Is an IEEPA Refund?

An IEEPA refund is the return of duties collected under IEEPA when authorized by court order or applicable law. In practical terms, this typically applies to tariffs or duties that were collected but are later determined to be refundable based on legal developments or eligibility criteria.

Unlike standard post-entry adjustments or duty drawback processes, IEEPA refunds follow a distinct pathway. They are handled through formal U.S. Customs processes, requiring structured submission, supporting documentation, and review before any funds are returned.

For importers, this means the process is not automatic. Even if duties are ultimately refundable, companies must take proactive steps to identify eligibility and submit a complete and accurate request.

What Is CAPE (and Why It Matters)?

CAPE — Consolidated Administration and Processing of Entries — is the system now used to submit and process IEEPA refund requests.

It is a functionality within the U.S. Customs and Border Protection Automated Commercial Environment (ACE), and it represents a significant shift in how these refunds are handled.

Historically, refunds were processed on an entry-by-entry basis, which created inefficiencies, inconsistencies, and long processing times. CAPE is designed to address these issues by:allowing multiple entries to be consolidated into a single refund request and providing a standardized pathway for submission and review.

However, CAPE is being deployed in phases. Phase 1, launched in April 2026, applies only to certain types of entries — such as unliquidated entries or those within a defined timeframe after liquidation. More complex scenarios are expected to be addressed in future phases.

For importers, this means CAPE is both an opportunity and a constraint: it creates a clearer process, but not all claims can be submitted through it yet.

Who Can Apply for an IEEPA Refund?

One of the most critical aspects of the process is understanding who is actually eligible to file.

In most cases, only the Importer of Record or the customs broker that managed the customs documentation can submit an IEEPA refund request.

The Importer of Record is the party legally responsible for the goods at the time of entry and is typically the primary claimant.

A customs broker may also submit the request if they managed the customs filings and have the appropriate authorization to act on behalf of the importer.

This distinction is important because many other parties may be involved in a transaction — suppliers, financial institutions, logistics providers — but they generally do not have standing to file the claim.

In practice, delays often occur when:

• Responsibility is not clearly assigned at the outset
• Both importer and broker assume the other party is handling the submission
• Required authorizations or access to systems (such as ACE) are not in place

Establishing ownership early — and confirming who will manage the submission — is a key first step in avoiding unnecessary delays.

How the CAPE Process Works — Simplified

While each case may vary, the CAPE process generally follows this structured sequence of steps:

Determine Eligibility

Importers must first evaluate whether their entries qualify under the current CAPE phase. This involves reviewing factors such as whether the entry is unliquidated or recently liquidated and whether the type of duty falls within the scope of IEEPA refund eligibility Because CAPE is still evolving, this step often requires careful interpretation of current guidance.

Gather Documentation

Once eligibility is established, the next step is assembling the required data. Initially this includes entry summaries. If any supporting documentation is needed to substantiate a claim, it will be requested later in the process

Submit Through ACE/CAPE

The refund request is then submitted through the CAPE functionality within ACE.This requires proper system access, accurate data entry, and alignment between importer and broker on the submission details. Errors at this stage can result in rejected submissions or the need to restart the process.

CBP Review

Once submitted, the request undergoes review by CBP. During this phase additional information may be requested, timelines can vary significantly, and communication may be limited. This is often the longest and least transparent part of the process.

Determination and Refund

If the claim is approved, CBP will issue a determination and process the refund, including any applicable interest. The process is expected to take at least six months, and in many cases longer. Importers should also be aware that the opportunity to apply may be time-sensitive, making early action important.

The Six Key Challenges Importers Face with CAPE

While the introduction of CAPE has created a more structured pathway for IEEPA refunds, importers are still encountering significant challenges when navigating the CAPE process within ACE. These challenges are not just technical — they are operational, involving data, coordination, and internal readiness.

1. Determining Eligibility for IEEPA Refunds Under CAPE

One of the most common questions importers ask is:
“Do my entries qualify for an IEEPA refund under CAPE?”

The IEEPA refund process through CAPE follows a structured but still evolving workflow:Importers must first determine whether their entries qualify under the current CAPE phase. This includes understanding entry status, particularly:

• Unliquidated entries: Entries that have been filed with CBP but have not yet been finalized (or “liquidated”). Duties have been paid, but CBP has not completed its final review and assessment.
• Post-liquidation window: After an entry is finalized (liquidated), there is a limited period — often defined by CBP policy — during which corrections or refund claims may still be submitted. CAPE Phase 1 includes certain entries within approximately 80 days of liquidation.

In simpler terms:

• Unliquidated = still open
• Post-liquidation window = recently closed, but still eligible for adjustment

Understanding where your entries fall is essential to determining whether you can apply now.

2. System Capacity and Performance

As a newly deployed functionality within ACE, CAPE is still maturing. Importers and brokers are encountering technical friction that can slow down progress.

Common issues include:

• Error messages during submission
• Timeouts or system lag when uploading data
• Inconsistent behavior when working with larger or consolidated datasets

These challenges are not unique to any one company — they are typical of early-stage system rollouts. However, they can create delays, especially when submissions need to be reworked or resubmitted multiple times.

3. Getting Data CAPE-Ready

Although CAPE allows for consolidated refund requests, the process still depends on accurate, detailed, entry-level data.

For many importers, this is one of the most time-intensive steps. Required information may include:

• Entry summaries and classifications
• Duty payment records
• Supporting documentation tied to each shipment

The challenge is that this data is rarely housed in a single system. Instead, it may be spread across:

• Internal ERP systems
• Broker platforms
• Logistics providers
• Archived records

Reconciling these data sources — and ensuring consistency across them — can be difficult. Even minor discrepancies can lead to delays or questions during review.

4. Inefficient Communication with Customs Brokers

The CAPE process requires tight coordination between the Importer of Record and the customs broker responsible for filings. In reality, this coordination is often a weak point. Common breakdowns include:

• Unclear ownership of specific tasks
• Delays in receiving required documentation
• Misalignment on timelines or priorities

Because only the importer or their broker can submit the request, both parties must be aligned. When communication is fragmented or reactive, the process slows down and errors become more likely.

5. Limited Internal Expertise or Bandwidth

IEEPA refunds and CAPE submissions are not part of most companies’ day-to-day operations. As a result, many importers lack:

• Dedicated personnel with experience in this process
• Institutional knowledge of how to navigate CAPE
• Available bandwidth to manage submissions alongside other responsibilities

This often leads to delays in getting started, incomplete documentation, or reliance on already stretched teams. For organizations without strong internal resources, even understanding where to begin can be a challenge.

6. Lack of Visibility After Submission

Once a CAPE submission is complete, the process moves into CBP review — and visibility becomes limited. Importers may have little insight into:

• The current status of their request
• Expected timelines for review
• Whether additional information is needed

This lack of transparency can create uncertainty, particularly when large sums are involved. It also makes it difficult for companies to plan cash flow or set expectations internally.

Why This Matters

Taken together, these challenges highlight an important reality:
CAPE improves the structure of the process, but it does not eliminate the need for strong internal coordination, clean data, and clear ownership.

For importers, success depends less on understanding the system itself — and more on how well they can prepare, align teams, and execute within it.

Where Legacy Can Help

IEEPA refunds — and the CAPE process in particular — sit at the intersection of compliance, data, and operations. While the submission itself may be handled by the Importer of Record or a customs broker, the success of that submission depends heavily on how well the organization is prepared before it ever enters the system.

This is where Legacy adds value.

While Legacy does not file IEEPA refund claims (except for existing clients), we work alongside importers to strengthen the operational foundation that supports a successful outcome. We’re happy to advise importers and help assist in the following ways:

Assessing Readiness Before Submission and Identifying Gaps

Many delays in the CAPE process stem from incomplete or misaligned preparation. Legacy helps organizations evaluate whether their entries are likely to qualify under current CAPE phases and whether required documentation is complete, accessible, and consistent. This upfront clarity can significantly reduce rework and delays later in the process.

IEEPA refund challenges are often not obvious until a submission is underway. Legacy helps surface issues early, such as missing or inconsistent entry data and fragmented documentation across systems and partners. By identifying these gaps in advance, companies can address them proactively rather than reacting to issues during review.

Providing Guided Support Through the Process

While Legacy does not directly submit claims, we can help guide teams through the process step-by-step — helping interpret requirements and expectations, advising on how to structure and organize submissions, and providing perspective on common pitfalls and how to avoid them. For many organizations, this “guided” approach reduces uncertainty and builds confidence in navigating a process that is still relatively new.

Building Long-Term Operational Readiness

Beyond a single refund opportunity, CAPE highlights broader challenges around data visibility and supply chain coordination. Legacy works with clients to strengthen these capabilities over time by:

• Improving visibility and access to critical shipment and entry data
• Aligning systems and workflows across partners
• Creating a more connected, responsive supply chain operation

The result is not just better readiness — but a stronger operational foundation overall.

Conclusion

If you’re evaluating whether your entries qualify for an IEEPA refund, or preparing to navigate the CAPE process, having the right perspective early can make a measurable difference.

Legacy works with importers to help them understand where they stand, identify what’s needed, and move forward with greater clarity.

Whether you’re just starting to assess eligibility or already working through the process, we’re available to provide guidance based on real operational experience.

Contact Legacy today to start the conversation.