CBP Launching CAPE for IEEPA Refunds: What Importers Need to Know
U.S. Customs and Border Protection (CBP) is introducing a new system that will significantly impact how importers recover duties imposed under the International Emergency Economic Powers Act (IEEPA).
The system, called CAPE (Consolidated Administration and Processing of Entries), is scheduled to go live on April 20, 2026. It is designed to streamline what has traditionally been a slow, manual refund process.
Why This Matters
Recent rulings from the Court of International Trade (CIT) have directed CBP to remove IEEPA duties from certain entries and issue refunds where applicable. Given the scale of impacted entries—estimated in the billions of dollars—CBP developed CAPE to handle this volume efficiently.
At the same time, CBP has confirmed the system is in its final stages of testing ahead of deployment, signaling that importers should begin preparing now.
What CAPE Does
CAPE introduces an electronic process within the ACE Portal that allows importers and customs brokers to:
- Submit refund claims digitally
- Process large volumes of entries in a single submission
- Automatically remove IEEPA duties from entries
- Receive consolidated refunds, including applicable interest
Rather than processing refunds one entry at a time, CAPE consolidates them, significantly improving efficiency.
How the Process Works
The CAPE process follows a structured workflow:
- A CAPE Declaration is submitted through the ACE Portal
- The system validates the entries for eligibility
- IEEPA tariff lines are removed and duties are recalculated
- CBP liquidates or reliquidates the entries
- Refunds are issued, typically in a consolidated payment
For most eligible entries, CBP expects refunds to be issued within approximately 60 to 90 days from submission .
Key Limitations to Understand
CAPE Phase 1 is not available for all entries. It is limited to:
- Certain unliquidated entries
- Entries within approximately 80 days of liquidation
Additionally, some entries are not eligible, including those:
- Subject to antidumping or countervailing duties (AD/CVD)
- Associated with drawback claims
- With open or suspended protests
- Falling outside specific validation parameters
Understanding eligibility is critical, as incorrect submissions will be rejected.
Important Compliance Considerations
While CAPE simplifies the refund process, it does not replace existing legal requirements.
Importers are still responsible for:
- Monitoring liquidation timelines
- Filing protests when necessary
- Preserving their legal rights for ineligible entries
In other words, CAPE is a tool—not a substitute for a compliance strategy.
Additional Operational Details
CBP estimates that approximately 82% of eligible entries can be processed electronically through CAPE, representing a substantial portion of total IEEPA duty exposure.
- Refunds will be issued via ACH (electronic payment) only
- Payments will be consolidated rather than issued per entry
- CBP may offset outstanding debts before issuing refunds
- Entries may be grouped into a single refund payment
Strategic Considerations for Importers
Importers should carefully evaluate how CAPE fits into their overall refund strategy:
- Entries within the eligibility window may benefit from faster CAPE processing
- In some cases, previously filed protests may be withdrawn and resubmitted through CAPE
- Post Summary Corrections (PSCs) cannot be used to request IEEPA refunds
Each situation should be reviewed individually to determine the best approach.
What You Should Do Now
To prepare for CAPE:
- Confirm your ACE Portal account is active
- Ensure ACH refund enrollment is completed
- Identify potentially eligible entries
- Coordinate with your customs broker
Early preparation will help avoid delays once the system goes live.
Final Thoughts
CAPE represents a meaningful improvement in how CBP processes IEEPA duty refunds. However, it also introduces new requirements around eligibility, timing, and submission accuracy.
For importers with significant exposure to IEEPA duties, this system offers a faster and more efficient path to recovery—provided it is used correctly.
How ARI Can Help
ARI Shipping Corp. is actively assisting clients with:
- Identifying eligible entries
- Preparing CAPE submissions
- Advising on protest versus CAPE strategies
- Managing the administrative process
If you believe your shipments may qualify for refunds, now is the time to evaluate your options and act accordingly.
