An entry can be closed for customs purposes without necessarily closing the door on IEEPA tariff refunds. But getting that money back depends on more than filing a request.
U.S. Customs and Border Protection (CBP) launched Phase 3 of its Consolidated Administration and Processing of Entries (CAPE) refund system on October 6, 2026.
The development is significant for importers seeking recovery of duties collected under the International Emergency Economic Powers Act (IEEPA), particularly on entries that were already finally liquidated.
Earlier CAPE phases primarily addressed entries that had not liquidated, remained within the applicable reliquidation window, or qualified under certain reconciliation procedures.
Phase 3 addresses a different problem: What happens when an entry became final before its IEEPA duties could be refunded?
The answer depends on the entry, the importer’s legal position, and the relief ordered by the Court of International Trade (CIT).
First, What Does “Finally Liquidated” Mean?
Liquidation is the process through which CBP finalizes the duties, taxes, and fees owed on an import entry.
Once liquidation becomes final, CBP generally cannot simply reopen the entry through its ordinary administrative procedures.
For purposes of the IEEPA refund process, the distinction matters because the earlier CAPE phases were not designed to process all entries that had passed beyond the available administrative reliquidation period.
An importer could have paid substantial IEEPA duties, yet find that the affected entries were too far along in the customs process to qualify for the original refund mechanism.
Phase 3 was developed to address qualifying entries in that situation.
What Changed With CAPE Phase 3?
CBP opened Phase 3 on October 6, 2026, to process certain finally liquidated entries subject to CIT orders directing reliquidation without IEEPA duties.
Under this process, CBP can address eligible entries even when they have passed the ordinary administrative reliquidation period.
That is an important step toward recovering duties that might otherwise remain tied to finalized entries.
According to an October report from Sandler, Travis & Rosenberg, CBP had accepted 3,960 Phase 3 declarations covering more than 15.8 million entries as of October 23.
However, those figures do not mean every importer with a finally liquidated entry can immediately submit a Phase 3 declaration.
Who Can Use Phase 3 Right Now?
The critical requirement is court-ordered relief.
Phase 3 currently covers qualifying finally liquidated entries belonging to importers who filed CIT lawsuits and whose entries are covered by orders directing CBP to reliquidate them without IEEPA duties.
Filing a lawsuit alone does not automatically establish Phase 3 eligibility.
CBP is providing access on a rolling basis, and notices concerning eligibility are being sent to plaintiffs’ legal counsel.
Importers already involved in litigation should coordinate with their attorneys and customs brokers to confirm which entries are covered and when the appropriate CAPE declarations may be submitted.
For importers that have not filed suit, the situation is more complicated.
What About Importers Who Never Filed a Lawsuit?
An October 8 decision in Freestyle World, Inc. v. CBP certified a class involving importers seeking refunds of challenged IEEPA duties.
That development could create a broader path to recovery for qualifying importers who did not bring individual CIT actions.
But class certification and an actual refund order are different things.
The certification does not automatically authorize every non-litigating importer to submit finally liquidated entries through CAPE Phase 3.
The government has also challenged the court’s authority to provide broad relief to importers who did not bring their own lawsuits.
Until those issues are resolved, importers should not assume that class membership guarantees a refund or that waiting carries no risk.
Businesses with significant IEEPA duties tied to finally liquidated entries should consult qualified customs litigation counsel about their individual circumstances and applicable deadlines.
Five Things Importers Should Review Now
1. Identify Every Entry That Included IEEPA Duties
Start with a complete entry-level record of IEEPA duties paid.
Capture entry numbers, import dates, liquidation dates, amounts deposited, and the importer of record.
Separate IEEPA duties from other tariffs and customs charges so potential recovery amounts are not overstated.
2. Determine Which Entries Are Finally Liquidated
Not every entry belongs in the same CAPE processing category.
Review liquidation status and dates to distinguish entries eligible for earlier CAPE phases from entries that may require Phase 3 or additional legal relief.
3. Confirm Whether a Court Order Covers the Entries
For importers pursuing individual CIT litigation, confirm with counsel whether the relevant reliquidation order applies and whether CBP has authorized the next Phase 3 filing step.
Do not assume a pending lawsuit, by itself, provides immediate CAPE access.
4. Verify Refund Payment Information
CBP’s refund process also depends on accurate payment details.
Importers should confirm that their Automated Clearing House (ACH) refund information is current and properly validated.
Missing or incorrect banking information can delay payment even after a refund has been certified.
5. Coordinate Customs Records With Legal Strategy
Customs brokers can help importers organize entry histories, identify liquidation dates, reconcile duty payments, and prepare accurate information for the applicable refund process.
Legal counsel should determine litigation options, assess class-action implications, and advise on preserving rights.
Both functions matter, but they serve different purposes.
What Can Importers Actually Recover?
For qualifying entries covered by appropriate relief, the refund process is intended to recover IEEPA duties that were unlawfully collected, together with applicable interest.
That does not mean every duty paid on the same entry is refundable.
Ordinary customs duties and other tariffs imposed under separate legal authorities must be evaluated independently.
The recoverable amount depends on the affected entries, the duties actually paid, and the relief available to the importer.
The Refund Process Is Moving. Don’t Assume Your Entries Are Included.
Phase 3 represents meaningful progress for importers whose IEEPA duties were attached to finally liquidated entries.
But the distinction between having a potentially refundable entry and having an authorized route to recovery remains important.
For importers, the immediate priority is to understand which entries are affected, what stage of the refund process applies, and whether additional legal steps may be necessary.
Coppersmith can help importers organize customs entry records, review liquidation information, and coordinate documentation with legal counsel as the IEEPA refund process develops.
A finalized entry does not necessarily mean a lost refund. But recovering the money requires knowing exactly where your entries stand.
