The result of the Supreme Court's decision*, an estimated $165 to $175 billion in unlawfully collected duties must be returned to roughly 330,000 importers across more than 53 million entries. The Court of International Trade directed CBP to begin processing refunds, and CBP responded by building a purpose-built system called CAPE -- the Consolidated Administration and Processing of Entries -- inside its Automated Commercial Environment (ACE) portal.
Summary: US Customs has defined a way to secure refunds for IEEPA tariffs. The refunds will be paid to the importer of record and managed via the same customs systems through which the duties were processed. Definitions to know.
What is most unclear is how "Express Carriers" (FedEx, UPS and DHL) will manage IEEPA refunds.
UPDATE: The First Day of CAPE was largely a success!
The first sworn accounting of CAPE Phase 1 performance, straight from the U.S. Court of International Trade docket.
On April 28, 2026, U.S. Customs and Border Protection (CBP) filed a declaration with the U.S. Court of International Trade. This provided the first official accounting of how CAPE refund tool has performed since its April 20 launch.
The numbers tell a clear story of a system that is working.
On launch day (April 20, 2026) ACE recorded a nearly 70 percent increase in daily log-ins compared with its previous all-time record.
CAPE Phase 1 — First Six Days
CBP figures as of 8:00 p.m. ET, Sunday, April 26, 2026
| CAPE declarations submitted | 75,306 |
| Declarations that passed file validations | 47,315 |
| Entries accepted for IEEPA duty removal | 11,222,927 |
| Entries already liquidated and in refund pipeline | ~1,740,000 |
| Entries rejected at entry-specific validation | 2,124,394 |
| Total downtime since launch | 18 minutes |
The volume is enormous. More than 11.2 million individual entries cleared CAPE's entry-specific validations in the first six days.
Refunds are actually moving. Roughly 1.74 million entries — about 15.5 percent of the accepted pool — have already been liquidated and entered the formal refund pipeline.
Rejections are real, but recoverable. Roughly 2.12 million entries failed entry-specific validation — close to one in six. Importers (or their brokers) can resubmit corrected declarations.
The only interruption since launch was an 18-minute pause on April 20, during which CBP briefly reconfigured resources to optimize processing capacity. The uptime record of +99.9% percent over the first six days is proof that CAPE is running strong.
*Supreme Court Background: The Supreme Court's landmark 6-3 ruling in Learning Resources v. Trump on February 20, 2026 determined that the International Emergency Economic Powers Act (IEEPA) was not a valid basis for imposing tariffs. The Court held that the IEEPA's broad "regulate" language does not convey taxing authority via tariffs.
What is CAPE: Consolidated Administration and Processing of Entries (CAPE) is the refund process built within the ACE Portal. CAPE is not a payment tool. It is a review engine with a refund function attached.
Phase 1 is limited to certain unliquidated entries and certain entries that are no more than 80 days past liquidation.
On the surface, the process looks straightforward: upload a CSV of entry numbers, wait 60 to 90 days, receive your refund electronically via ACH. But trade compliance professionals who have studied the mechanics of the system are sounding alarms.
ACH -- Automated Clearing House: The electronic funds transfer network through which CBP disburses all refunds, including IEEPA duty refunds processed through CAPE. As of February 2026 all CBP refunds are electronic.
Liquidated Entry: The liquidation process is the period - usually around 10 months - between the entry date and when CBP finalizes an entry. Importers usually then have a 180-day window to flag any issues or disputes with the finalized tariff bill. Most entries with IEEPA tariffs have either not been liquidated or within 80 days of liquidation. (Under 19 CFR Part 159, liquidation is the final determination of duties based on tariff classification, value, origin and admissibility.)
Importers of record and licensed customs brokers may now file CAPE Declarations through ACE.
Quick Answer
Phase 1 covers entries that are either unliquidated or were liquidated less than 80 days before the date the Declaration is submitted. The filing vehicle is a CSV file of entry numbers, submitted through ACE.
A Phase 1 CAPE Declaration is a CSV (comma-separated values) file containing only entry numbers. Two conditions must be met for each entry included:
Important for Informal Entry Holders
Informal entries liquidate at clearance under 19 CFR 159.10(a). This means virtually every informal entry that paid IEEPA duty during 2025 is now far outside the 80-day window required for Phase 1. Small importers and consumers who received goods via FedEx, UPS, or DHL will most likely need to wait for Phase 2 of CAPE, which is expected to extend refunds to finally-liquidated entries. The preparation steps above still apply — having your ACE account, ACH enrolment, and duty-paid reconciliation ready now means you can file as soon as Phase 2 opens.
For importers with recent formal-entry exposure that falls inside the 80-day window, Phase 1 is worth acting on now. The CSV itself is simple, but the preparation — confirming IOR status, cleaning entry data, and resolving ACE errors — takes time.
CBP has described CAPE as having four integrated components:
Importers or their authorized brokers upload a CSV file listing entry numbers (up to 9,999 per declaration). The system validates the file format, confirms the filer's authorization, and checks each entry number against ACE records.
For validated entries, the system strips the IEEPA-specific Chapter 99 HTS codes, removes the corresponding duties, and recalculates what is owed without IEEPA. This creates a new version of the entry summary inside ACE.
CBP reviews the updated entries and initiates liquidation (for unliquidated entries, scheduled 45 days from acceptance) or reliquidation (for recently liquidated entries within the 80-day window).
After liquidation, refunds are consolidated by importer of record and liquidation date, then disbursed electronically through ACH.
The critical distinction is in the third step. The real process is not "upload then refund." It is "upload, then review, then liquidation or reliquidation, then refund."
Importers are started to question error messages in CAPE. The error codes provide information necessary to fix the problem.
The early system-driven ones were driven by high volume. Message "not started" is not a failure but rather informing the user that the batch is in queue. In this case, resubmitting is the wrong move because it creates duplicate filings.Only the Importer of Record (IOR) or the broker who filed the original entry may submit CAPE Declarations. No third parties are authorized to request these refunds.
Filers must maintain an active ACE Portal account and complete ACH enrollment with current banking information before any refunds can be processed.
CSV uploads should contain only entry numbers (without dashes) and filer codes.
CAPE filing became available on April 20, 2026, accessible through a tab in the ACE Portal.
Unlike Post Summary Corrections (PSC), CAPE has no submission deadline. PSC cannot be used for IEEPA refunds. New ACE Entry Summary Error Code
Condition Code: 864: PSC NOT ALLOWED – REFUND REQUESTED
Explanation: PSC is not allowed due to a CAPE Refund in process
Individual entry rejections will generate error codes but will not halt processing of remaining valid entries. Corrections and resubmissions are permitted.
Refunds are processed Monday through Thursday with expected completion within 60 to 90 days of CAPE Declaration acceptance, unless compliance reviews are required.
Refunds are consolidated by liquidation (or reliquidation) date and grouped by IOR or CBP Form 4811 designee. A PSC can be filed to modify the 4811 party if needed.
Interest accrues from the liquidation date, not the entry date.
All refunds are issued electronically via ACH to the designated bank account registered in the ACE Portal.
Importers with pending Court of International Trade (CIT) cases may still file through CAPE.
The 80-day compliance review period includes calendar days, not business days.
All refunds will be issued in accordance with applicable laws and any relevant court orders.
Trade professionals who have been tracking the CAPE development through court filings and CBP declarations from Brandon Lord, Executive Director of Trade Programs at CBP. The features that reveal CAPE's intent to only refund correctly admited entries.
CBP has been conducting intensive testing across the four CAPE components. Stress-testing how the system handles entries where the data does not align cleanly -- mismatched classifications, inconsistent country of origin declarations, or duty calculations that do not reconcile.
Entries subject to antidumping or countervailing duties are excluded from Phase 1 automation entirely. When they are eventually processed, it is expected to be a much more manual process. For importers with complex duty structures, this is a probably something to expect.
CBP has been candid with the Court about the operational challenge. The agency is not going to review every single entry with the same intensity. Instead, the system is designed to flag entries that warrant closer examination -- the ones that look worth reviewing.
Every CAPE claim, every adjustment, every recalculation, and every decision is now recorded in one place. CBP has not characterized this as an audit mandate. But it is a system that evaluates claims before money is refunded.
CAPE is essentially an audit of the original entry with a refund function.
The CSV upload starts the entire process. The complexity begins once ACE starts recalculating your entries without IEEPA duties.
When the system strips the IEEPA Chapter 99 codes, it does not just reduce your total. It recalculates the entire entry through ACE's standard validation logic -- the same logic that reviews every commercial entry filed in the United States. That means your HTS classifications, your declared values, your country of origin determinations, and your duty calculations are all exposed to fresh scrutiny.
Importers with clean entries and accurate classifications should move through the process without incident. But those who may have used IEEPA tariff codes to sidestep obligations under other programs -- Section 232 steel and aluminum duties, Section 301 China tariffs, or country of origin requirements -- face real exposure.
Social Media Comment from a licensed customsbroker: "The portal process is relatively straightforward. You submit the required information, and if something needs to be corrected, it is returned for revision and resubmission. That is very different from the idea that you only get one chance and need extensive paid help just to avoid losing the refund."
One trade expert put it bluntly: if CBP catches incorrect tariff classifications where importers were paying IEEPA to avoid 232, 301, or proper country of origin determinations, the consequences extend well beyond a delayed refund.
Each piece of data submitted through CAPE flows into ACE, where it runs against audit criteria that CBP has been building and refining for years. CAPE uses ACE internal tools to flag anomalies and concerns on entries. Newly recalculated entries will undergo the same data reviews.
* The country of origin
* The HTS classification(not just the product HTS but the 99's as well).
* The declared value is correct (Taking deductions for transportation and insurance?)
* There are no material omissions or false statements
Beyond compliance risk, there is a practical operational concern that is not getting enough attention: System capacity! But the initial reports are encouraging.
There is no advantage to being first in line if the system is overwhelmed. A measured approach -- ensuring data quality before uploading -- will serve importers far better.
There is a massive category of IEEPA-affected entries that is not getting enough attention in CAPE discussions: the millions of shipments where FedEx, UPS, or DHL acted as the Importer of Record.
The IEEPA Refund Process for Express Consignment Shipments (CFR Part 128) are not clearly defined
Throughout the IEEPA tariff period -- roughly March 2025 through February 24, 2026 -- these carriers collected and remitted IEEPA duties on behalf of shippers and consumers across millions of transactions. The question of how those duties get returned to the people who actually paid them is layered. This includes how each entry was filed, conditions of carriage, and contractual obligation.
Not all carrier-handled entries are the same. The refund path depends on the filing relationship and entry type:
Where the shipper or consignee was listed as the Importer of Record and the carrier acted only as the customs broker, the refund responsibility falls on the IOR. The IOR (or their broker) files the CAPE Declaration.
Where the carrier itself was listed as the IOR on formal or informal entries filed in ACE, the carrier must file the CAPE Declaration and receive the CBP refund.
Usually duty free so not affected by IEEPA
FedEx has publicly committed to issuing refunds for IEEPA tariffs paid to shippers and consumers who originally bore those charges. FedEx has also filed its own lawsuit in the Court of International Trade seeking a full refund of all IEEPA duties it paid as IOR.
DHL has stated it will continue to engage with relevant authorities for entries where it acted as IOR -- whether formal or informal -- but has not committed to a specific pass-through timeline or mechanism.
UPS has focused its public guidance on advising importers to ensure their ACE Portal access and ACH are current. UPS has noted that Non-Resident Importers unable to provide NACHA-compliant US bank details can designate UPS Supply Chain Solutions as the notify party for refund handling.
READ MORE: FedEx, UPS and DHL Express Courier (CFR Part 128) refunds
The legal pressure is real. Multiple class action lawsuits have already been filed against both FedEx and UPS in federal courts across the country. The customs law is clear: The refunds go to the importer of record. The issue for FedEx, UPS and DHL relate more to contract law.
Non-ABI entries with no entry summary lines in ACE: CBP has explicitly identified this as a category deferred to future CAPE phases. Some entries processed outside standard ACE channels -- including certain postal entries and legacy manifest clearances -- may lack the data structure that CAPE requires. The Court of International Trade has also specifically noted that its refund order does not address de minimis treatment under 19 U.S.C. Section 1321, which is the subject of separate litigation.
Even where the CAPE mechanics work -- where the carrier files the declaration, CBP processes the refund, and the money flows to the carrier via ACH. Consider the scale of FedEx, UPS, and DHL who processed millions of IEEPA-dutiable shipments. Each shipment was invoiced to an individual recipient or business. Reconciling those invoices, matching refund amounts to individual transactions, and distributing credits or payments across that volume is a significant IT, accounting, and customer service undertaking.
Retain every invoice showing IEEPA tariff charges, import duty fees, customs fees, or tariff-related surcharges from FedEx, UPS, or DHL for shipments between March 2025 and February 24, 2026. Look for line items labeled "customs duty," "tariff surcharge," or "IEEPA fee."
Were you listed as the Importer of Record, or was the carrier? If you were the IOR, you (or your broker) need to file the CAPE Declaration. If the carrier was the IOR, the carrier must file and then pass the refund through to you.
Ask your carrier what their specific plan is for filing CAPE Declarations and returning refunds. FedEx has established dedicated support lines for tariff refund inquiries. Get a commitment in writing if possible.
Multiple class action lawsuits have been filed against carriers seeking refunds of IEEPA duties and associated processing fees. If you paid significant IEEPA charges through a carrier, you may be a potential class member. Keep records organized in case they are needed.
Do not wait for a carrier if you were listed as the IOR on formal entries. Confirm your ACE Portal access, verify your ACH enrollment, and prepare your own CAPE Declaration for eligible entries.
The carrier-as-IOR issue is not a footnote. Express carriers handle a substantial share of all US import entries by volume. When FedEx, UPS, and DHL file CAPE Declarations for entries where they served as IOR, those filings will represent millions of entry numbers flowing into a system already processing claims from 330,000 individual importers. The processing burden -- on CBP, on ACE, and on the carriers themselves -- is enormous.
For Canadian exporters shipping to US customers through express carriers, this has direct implications. If your US buyers received goods through FedEx, UPS, or DHL during the IEEPA period and the carrier was listed as IOR, the refund path runs through the carrier. Your buyers should be in contact with the carrier to understand timing and mechanics.
The bottom line: CAPE was designed around the traditional IOR-broker relationship. The carrier-as-IOR model -- particularly at the scale of millions of parcel and low-value entries -- is a layer of complexity that neither CAPE nor the carriers have fully solved yet.
The compliance community is also watching for longer-term consequences. Several legal experts have noted that the CAPE process could generate referrals for formal audit activity or even enforcement actions.
Refund claims of this magnitude will attract scrutiny. Large-scale recovery efforts tied to a high-profile Supreme Court decision are precisely the kind of activity that draws focused reviews. Companies that proactively validate their import practices and documentation will be far better positioned than those who treat CAPE as a simple administrative exercise.
Some attorneys have raised the possibility that the review process could eventually feed enforcement through mechanisms like the False Claims Act, particularly where refund claims are found to rest on inaccurate underlying data. The key shift in thinking is that refunds trigger scrutiny, not closure. The process does not end when money moves -- it starts there.
As one observer noted, this is CBP's opportunity to demonstrate that its audit capabilities can identify discrepancies efficiently. The agency has been investing in auditors and data analytics for years. CAPE gives them a structured, centralized dataset to work with.
For businesses shipping goods into the United States -- including Canadian companies managing US import compliance -- the action items are clear:
CBP no longer issues paper refund checks. All refunds are electronic. If your banking information is not on file in ACE, your refund will sit in reject status until it is. As of late March, roughly 78 percent of affected importers had completed ACH enrollment.
Do not submit a CAPE declaration until you have reviewed the underlying data. Verify HTS classifications, country of origin declarations, and duty calculations. If any entries relied on questionable classification strategies, address those issues before they are exposed during recalculation.
Phase 1 covers most unliquidated entries and entries liquidated within the last 80 days -- approximately 63 percent of all affected entries. Entries involving AD/CVD duties, drawback claims, reconciliation, or final liquidation beyond the 80-day window are excluded and will be addressed in future phases.
This is not a task for any single function. The refund has financial planning implications, compliance risk implications, and potential legal exposure. Treating it as a cross-functional project is the only responsible approach.
There is no benefit to filing on day one if your data is not clean. A well-prepared submission filed in the second or third week will process more smoothly than a rushed filing that triggers rejection or review flags.
Low-volume importing businesses not enrolled in ACE can still apply for an IEEPA refund through their customs broker that submitted the entry on their behalf.
Based on the tentative CAPE refund timelines, refunds for approved requests are expected within 45 days. However, the timeline is subject to change.
In Phase 1, only refund requests for unliquidated entries and entries that have liquidated within the past 80 days will be processed. Complex entries -- those flagged for reconciliation, with drawback claims, a protest, and entries with antidumping or countervailing duty orders -- will be processed in a later phase. Some estimates imagine the process stretching out into 2027.
This depends on the age and date of liquidation of the entry. Entries with a protest are -- by definition -- more complex, and this may delay the timing of the refund. However, some recommend this step to protect the refund itself. That decision ultimately rests with each importer.
There is nothing to suggest that IEEPA refunds will be netted out against an outstanding balance. Yet this remains a possibility.
There is no clear guidance on how customs will manage liquidated entries that fall outside the protest period but have not been protested. While the U.S. International Court of Trade (CIT) ruled that all entries must be refunded, there is still a lack of clarity as to whether that includes un-protested, liquidated entries.
CAPE stands for Consolidated Administration and Processing of Entries. It is a purpose-built system inside the ACE Portal that processes IEEPA tariff refunds through four steps: (1) a Claim Portal for CSV upload of entry numbers, (2) Mass Processing to strip IEEPA Chapter 99 codes and recalculate duties, (3) a Review and Liquidation step where CBP evaluates recalculated entries, and (4) Refund Processing where approved amounts are disbursed electronically through ACH. The critical distinction is that CAPE is a review engine with a refund function -- not a simple payment tool.
CBP deserves credit for building CAPE as quickly and logically as they have. Returning $165 billion or more to 330,000 importers across 53 million entries is an unprecedented operational challenge, and the phased, systematic approach reflects serious institutional effort. Importers need to understand that CAPE is not a refund portal in the way most businesses are imagining it. It is a structured process with a review engine at its core.
Those who treat this as a compliance exercise -- with defensible positions, clean data, and coordinated preparation -- will recover their money efficiently.
Jet Worldwide provides international logistics, customs brokerage, and trade compliance services for businesses shipping to and from the United States and Canada. For guidance on cross-border trade strategies, contact our team.