U.S. Customs and Border Protection (CBP) has officially launched Phase 2 of its Consolidated Administration and Processing of Entries (CAPE) system, expanding eligibility for importers seeking refunds of duties paid under the International Emergency Economic Powers Act (IEEPA).
Effective June 29, 2026, the latest CAPE enhancement allows eligible reconciliation-flagged entries to enter the refund process for the first time, marking another major milestone in CBP’s implementation of the U.S. Court of International Trade’s refund orders. Importers that were previously unable to submit CAPE declarations may now have an opportunity to recover eligible IEEPA duties.
What Changed in CAPE Phase 2?
Phase 2 expands CAPE beyond the unliquidated and recently liquidated entries processed during Phase 1.
Importers may now submit CAPE declarations for eligible Entry Types 01, 02, and 06 that have been flagged for reconciliation, provided:
- The entry remains unliquidated or was liquidated within the previous 80 days.
- A Type 09 reconciliation entry has not yet been filed.
Once accepted into CAPE, CBP removes the IEEPA duties from the underlying entries before reconciliation is submitted, allowing reconciliation calculations to proceed without the IEEPA duties included.
Phase 2 is available through the ACE Portal using the CAPE Declaration process. CBP encourages importers to review its published eligibility requirements and FAQs before submitting declarations.
Additional Eligibility Requirements
While Phase 2 expands CAPE eligibility, several important limitations remain.
According to CBP:
- Only Entry Types 01, 02, and 06 are currently eligible.
- Entries must satisfy all existing CAPE eligibility requirements, including applicable liquidation status.
- Entries with a previously filed Type 09 reconciliation are not eligible under Phase 2.
- Additional entry categories, including certain finally liquidated entries, are expected to be addressed in future CAPE phases.
Importers should carefully review their entry portfolios to determine which entries qualify under the expanded functionality.
What Is Still Excluded?
Not every reconciliation entry qualifies under Phase 2.
Entries for which a Type 09 reconciliation has already been filed remain outside the scope of the current release. CBP has indicated these entries will be addressed during a future CAPE phase.
The agency is also continuing development of additional CAPE functionality to address remaining categories of entries. Future phases are expected to expand eligibility further as implementation continues and litigation surrounding IEEPA refunds progresses.
Timing Matters
Companies with reconciliation-flagged entries should review their portfolios promptly to determine whether they qualify under the expanded CAPE criteria.
CBP advises importers approaching reconciliation filing deadlines to carefully evaluate their filing strategy. If a reconciliation filing deadline is approaching, importers should ensure statutory filing requirements are met while also determining whether eligible entries should first be submitted through CAPE.
Importers should also review the updated CAPE FAQs and ACE Portal guidance before submitting declarations, as reconciliation timing may affect eligibility.
Why This Matters
Phase 1 of CAPE successfully automated refunds for millions of eligible entries but intentionally excluded reconciliation-flagged entries while CBP developed additional system functionality.
With Phase 2 now live, many importers who were previously unable to seek refunds through CAPE may now qualify. The expansion represents another significant step toward automating the IEEPA refund process while reducing the need for manual processing.
Importers should not assume all reconciliation entries qualify. Reviewing entry status, reconciliation activity, and liquidation timelines remains critical before submitting a CAPE declaration.
ASK AlbaTM
Alba’s Trade Advisory Services team can assist importers. Contact Alba for assistance with:
- Reviewing entry portfolios for CAPE eligibility
- Identifying reconciliation-flagged entries that now qualify for Phase 2
- Assisting with CAPE declaration preparation and submission
- Coordinating refund strategies alongside reconciliation filings
- Referring importers to qualified legal counsel when litigation or Court of International Trade considerations apply
Alba continues to monitor CBP guidance and future CAPE developments to help clients identify newly eligible entries as additional phases are implemented.
References
U.S. Customs and Border Protection (CBP). International Emergency Economic Powers Act (IEEPA) Duty Refunds.https://www.cbp.gov/trade/programs-administration/trade-remedies/ieepa-duty-refunds
