Updated July 17, 2026
Guidance Becomes More Direct for Finally Liquidated Entries
Importers with finally liquidated entries that are not eligible for CAPE Phase 1 or Phase 2 should strongly consider filing a protective lawsuit before the U.S. Court of International Trade (CIT). Recent guidance indicates that Phase 3 is expected to initially process refunds for importers that have obtained importer-specific court orders. Because litigation may take time and the two-year statute of limitations continues to run, waiting for additional CAPE guidance could jeopardize refund opportunities for some importers. Companies should consult qualified trade counsel promptly to evaluate whether a CIT action is appropriate for their circumstances.
Refund Totals Continue To Grow
Since our last update on the IEEPA refund process, the Consolidated Administration and Processing of Entries (CAPE) system has continued to advance. CBP’s latest filing with the Court of International Trade (CIT) shows a significant increase in approved refunds, the government’s appeal now has a formal docket number, and a new category of potential claimants has entered the discussion. Here’s what importers need to know.
In its July 1, 2026 progress report to the CIT, CBP reported $104.29 billion in potential and certified refunds accepted for CAPE processing, with $71.06 billion completed, certified, and transmitted to the U.S. Treasury. That represents a substantial increase from late June, when approximately $95 billion had entered the CAPE pipeline and roughly $40 billion had been disbursed.
Entries accepted for IEEPA duty removal now total 18.1 million, and 213,939 CAPE declarations have been submitted.
Combined, CAPE Phases 1 and 2 now account for an estimated $130 billion of the $166 billion in total IEEPA duties collected. Approximately $25 billion remains tied to categories the CAPE system has not yet reached, including antidumping and countervailing duty suspended entries, entries with active drawback claims or protests, and entries that were never filed through ACE.
Federal Circuit Appeal Moves Forward
The government’s appeal of the CIT’s universal refund order, originally filed at the end of May and formally noticed on June 2, has now been assigned Federal Circuit Case No. 2026-1898.
The legal issue remains unchanged. The government continues to argue that refunds for finally liquidated entries should be limited to importers who filed lawsuits with the CIT. The court’s orders, however, direct refunds to all importers of record regardless of whether they participated in the litigation.
That question has not yet been resolved. In the meantime, CAPE Phase 3, which is expected to address finally liquidated entries later this month, is being developed around the government’s litigant-only position.
New Group Seeks Access to Refunds
On June 17, 2026, attorneys representing a group identified as “tariffed payors” filed an amicus motion asking the CIT to preserve potential claims for parties that ultimately absorbed the economic cost of IEEPA tariffs but were not the importers of record. This could include downstream purchasers who paid higher prices because tariffs were passed through the supply chain.
As of this writing, the court has not ruled on the request.
If recognized, these claims would introduce a fourth category of interested party into a process that has largely focused on three groups:
- Unliquidated entries
- Finally liquidated entries with an active CIT lawsuit
- Finally liquidated entries without a lawsuit
Separately, several consumer class-action lawsuits against major online retailers are advancing a similar argument, asserting that downstream purchasers should ultimately benefit from any tariff refunds.
Court Holds Closed Settlement Conference
The CIT originally scheduled a closed settlement conference for July 9, 2026, but later rescheduled it for today, July 14, following the court’s July 13 deadline for CBP’s latest CAPE progress report.
Because the conference is not open to the public, no transcript is expected. However, any order issued by Judge Eaton could provide the next indication of how the court intends to address finally liquidated entries while the Federal Circuit appeal continues.
What Hasn’t Changed
The three-category framework from our previous update remains the foundation of the refund process.
- Unliquidated and not-yet-final entries continue moving through CAPE Phase 1 without being affected by the appeal.
- Finally liquidated entries tied to an active CIT lawsuit remain on track for refunds regardless of how the appeal is ultimately decided.
- Finally liquidated entries without a lawsuit remain the group most at risk of delayed refunds or potentially losing refund eligibility if the government’s position prevails.
Importers should also remember that the two-year statute of limitations for IEEPA refund claims continues to run.
What Importers Should Do
- Evaluate whether any finally liquidated entries without a CIT lawsuit warrant filing a protective action.
- Monitor the tariffed-payor amicus motion if your company believes it absorbed IEEPA tariff costs without being the importer of record.
- Confirm your ACE and ACH refund enrollment information is current. CBP has reported that thousands of approved refunds remain delayed because electronic payment information is missing.
- Watch for any order issued following today’s settlement conference, along with CBP’s next scheduled CAPE progress report.
Contact the Alba team. Our trade compliance experts are ready to help you evaluate your IEEPA refund strategy and determine whether your entries may require additional action.
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