U.S. Customs and Border Protection has postponed the launch of Phase 3 of its Consolidated Administration and Processing of Entries (CAPE) refund tool, the portion of the system built to handle refunds on finally liquidated IEEPA entries. The launch had been targeted for August 20, 2026. CBP has not announced a new date.
Why Phase 3 Matters
CAPE has rolled out in stages since the Supreme Court’s February 2026 ruling invalidating IEEPA tariffs. Phase 1 launched April 20, 2026, covering unliquidated entries and entries liquidated within the prior 80 days. Phase 2 followed on June 29, 2026, extending coverage to entries flagged for reconciliation.
Phase 3 was designed to close the remaining gap: entries that have already been finally liquidated. A July 17, 2026 Court of International Trade order directed CBP to reliquidate, without regard to IEEPA duties, entries that had been liquidated for more than 80 days for plaintiffs in the consolidated litigation now proceeding under Judge Richard Eaton. CBP was due to report on Phase 3 progress to the court on August 4, and the August 20 target date followed from that filing.
What’s Actually Holding This Up
CBP has not published a detailed public explanation for the delay. The federal government continues to contest the legal basis for issuing refunds on finally liquidated entries at all, separate from the technical readiness of the CAPE system itself. That underlying legal dispute, still working through the Federal Circuit appeal, means Phase 3’s timeline depends on litigation developments as much as on system builds.
What Importers Should Do Now
- If your entries are finally liquidated (not covered by Phase 1 or Phase 2), do not assume a refund mechanism is imminent. Continue tracking the CIT docket in the consolidated IEEPA litigation for updates.
- Confirm with your customs broker whether any of your entries fall into the finally-liquidated category, since eligibility rules differ meaningfully from Phase 1 and 2 entries.
- Where applicable, evaluate whether filing an individual protest or joining pending litigation is a more reliable path to recovery than waiting on Phase 3, particularly if your 180-day protest window under 19 U.S.C. § 1514 is approaching.
- Watch for CBP’s next scheduled status report to the Court of International Trade, which will likely be the first place a revised timeline surfaces.
References
CBP Trade Refund Reports and IEEPA Duty Refunds
CIT Orders CBP to Process IEEPA Tariff Refunds for Phase 3 “Finally Liquidated” Entries – SmarTrade
Breaking Trade News: CAPE Phase 3 Postponed – Customs & International Trade Law Blog
Need Help Navigating This?
Alba’s trade compliance team can help you assess how this development affects your IEEPA refund exposure and next steps. Contact ASK Alba™ to speak with our team.
