March 20, 2026

IEEPA Tariff Refunds: Current Status and Next Steps for Importers

Josie Forney Kohrman Jackson & Krantz LLP + Follow Contact LinkedIn Facebook X Send Embed When the Supreme Court struck down the IEEPA tariffs on February 20, 2026, the immediate question for most importers was: how do we get our money back? The weeks since that ruling have been defined by a fast-moving legal battle at the U.S. Court of International Trade (“CIT”) over exactly that question. Below is a practical update on where refunds stand, what CBP is building to issue payments, and what importers should do now to protect their recovery.

The Court Immediately Ordered Refunds

On March 4, 2026, Judge Richard Eaton of the CIT issued a sweeping order in Atmus Filtration, Inc. v. United States. The CIT directed U.S. Customs and Border Protection (“CBP”) to refund IEEPA duties to all importers of record, not just companies that filed lawsuits. The order addressed two groups of entries: (1) entries not yet liquidated, which CBP was directed to liquidate without IEEPA duties, and (2) entries already liquidated but still within the 180-day protest window, which CBP was directed to reopen and refund. In short, the court held the duties were unlawfully collected and must be returned.

However, the scale of the task became immediately apparent in the days following the order.

CBP Said It Couldn’t Comply — and the CIT Listened

On March 6, a senior CBP official filed a declaration explaining the agency’s position. According to the declaration, more than 330,000 importers paid IEEPA tariffs, across more than 53 million individual entries, totaling approximately $166 billion in collections. Processing those refunds manually, entry by entry, would require an estimated 4.4 million staff hours. CBP told the court it simply could not comply with the timeline ordered.

Judge Eaton accepted that explanation. Following a closed-door conference with the parties, the CIT temporarily suspended its immediate-refund order and directed CBP to report back with a progress update by March 12. The interest clock, however, kept running, and it was estimated at approximately $650 million per month.

CBP’s Proposed Fix: CAPE

In its March 12 Progress Report, CBP proposed an Automated Commercial Environment (“ACE”) portal, known as CAPE, which stands for “Consolidated Administration and Processing of Entries,” to process refunds in bulk. As described in the Progress Report, CAPE is expected to: (1) let importers upload a CSV of affected entries; (2) mass-recalculate entries without IEEPA duties; (3) review and set liquidation/refund dates; and (4) issue electronic payments to the importer’s bank. CBP estimates that CAPE could be ready around April of 2026.

CBP’s March 12 Progress Report indicates that CBP is building the refund process, but it is not live yet, and it will require importer action once it is.

Significant Uncertainty Remains

Even as CBP makes progress on CAPE, the legal landscape is far from settled. The government has reserved the right to appeal the CIT’s refund orders to the U.S. Court of Appeals for the Federal Circuit. Such an appeal could slow or complicate the refund timeline considerably.

There is also the unresolved question of “finally liquidated” entries, which are those where the standard 180-day protest window has already expired. The CIT’s March 4 order did not clearly resolve whether these entries are covered, and the government has not conceded that they are. For importers with entries in this category, the path to recovery is less certain and may require affirmative legal action.

What This Means for Importers

If an importer paid IEEPA tariffs, the CIT has recognized a right to relief for many entries. The remaining question is process: refunds may not be automatic, and importers should take a few practical steps now to be ready when CBP’s system goes live.

• Enroll in electronic refund payments: Federal refunds are issued electronically (not by paper check). CBP has reported thousands of importers are delayed because they are not enrolled in ACH Refund through ACE, so importers should confirm enrollment now.
• Organize entry data: CAPE is expected to require a standardized list of entries where IEEPA duties were paid, so importers should work to compile and validate that information.
• Review liquidation status and deadlines: Entries that are “finally liquidated” (the 180-day protest period has expired) may fall outside the current refund process. Depending on timing and facts, a protest may help preserve rights for some entries—so it is worth reviewing deadlines.
• Consider whether a CIT filing is appropriate: Many companies have filed at the CIT seeking refunds. Because some scope questions remain contested, a filing may be worth considering for importers with significant exposure or a large number of affected entries. In short, the law is moving toward refunds, but the operational process is still being built. Importers that prepare now, by confirming electronic payment setup, validating entry data, and monitoring any protest-related deadlines, will be best positioned to receive refunds as soon as CBP opens the program.

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.
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