Update: October 13, 2026
Two developments in early October changed the outlook for importers seeking refunds of duties paid under the International Emergency Economic Powers Act (IEEPA). On October 6, 2026, U.S. Customs and Border Protection (CBP) deployed Phase 3 of its Consolidated Administration and Processing of Entries (CAPE) system, opening refund processing for finally liquidated entries to certain plaintiffs at the Court of International Trade (CIT). Two days later, on October 8, 2026, the CIT certified a class that could eventually extend relief to importers that never filed their own lawsuits.
Neither development reaches every importer automatically. Which path applies depends on whether you filed suit, when your importer of record (IOR) number was submitted to CBP, and how your entries were filed.
What Phase 3 Covers
CAPE Phases 1 and 2 processed IEEPA refunds for unliquidated entries and entries that had not yet become final. Finally liquidated entries, generally those liquidated more than 90 days earlier and outside CBP’s ordinary reliquidation window under 19 U.S.C. § 1501, remained out of reach. CBP took the position that reliquidating those entries required specific court authority.
The CIT supplied that authority in a July 17, 2026 order directing CBP to reliquidate, without regard to IEEPA duties, plaintiffs’ entries that had been liquidated for more than 80 days and on which IEEPA deposits were made. The court has since ordered reliquidation of entries in more than 4,000 individual lawsuits assigned to Judge Richard K. Eaton. Phase 3 is the CAPE functionality that processes those court-ordered refunds.
Who Can File Phase 3 Declarations Now
Phase 3 is limited to plaintiffs. According to a declaration CBP filed with the court on September 15, 2026, plaintiffs that submitted a valid IOR number to CBP by July 30, 2026, could begin filing Phase 3 CAPE declarations on October 6. Being a plaintiff, or having an active IOR number in ACE, does not by itself satisfy this requirement. Plaintiffs whose IOR number was submitted after July 30 must wait for additional CBP instructions; the October 6 date does not apply to them.
CBP also limits who can submit a declaration. Only the importer of record, or the licensed customs broker that filed the entries, may file a CAPE declaration. Attorneys cannot file on an importer’s behalf. Refunds are issued electronically, so ACH refund information must be current in the ACE Portal before CBP can pay.
A Potential Path for Importers That Did Not Sue
On October 8, Judge Eaton certified a class in Freestyle World, Inc. v. U.S. Customs and Border Protection that could allow qualifying importers to recover IEEPA duties, including on finally liquidated entries, without filing individual lawsuits. The class covers all importers of record that paid IEEPA duties between February 1, 2025, and February 19, 2026, except entities that filed their own lawsuits to recover those duties.
The court certified the class under Rule 23(b)(2) of its rules, which means membership is automatic. Importers that meet the definition do not opt in, cannot opt out, and are not required to take any action under the order at this stage. Freestyle World serves as class representative, and the court appointed Barnes, Richardson & Colburn, LLP and Lieff Cabraser Heimann & Bernstein, LLP as class counsel.
The ruling does not itself order refunds. The class is seeking a court order directing CBP to liquidate or reliquidate class members’ entries without IEEPA duties, which would then trigger refunds. The court held a closed conference on October 13, and the parties’ joint proposed scheduling order, including the date the government must respond to the class complaint, is due October 22. Separately, the government’s appeal of the CIT’s broader reliquidation order remains pending at the Federal Circuit.
These are procedural milestones; broader refund access still requires further court action and CBP instructions. The opinion does not address protests or other filing deadlines, so importers should not drop existing refund-preservation steps without consulting counsel. Alba will reassess developments at the end of October.
Which Path Applies to You
- Plaintiff, IOR submitted by July 30: You can file Phase 3 CAPE declarations through the ACE Portal now. Alba can file declarations for entries it filed as the customs broker and can help other plaintiffs prepare their entry lists for submission by the importer of record.
- Plaintiff, IOR submitted after July 30: Wait for CBP’s additional instructions. The October 6 filing date does not apply to you.
- No lawsuit filed: Phase 3 does not reach your finally liquidated entries, but you are likely a member of the certified class if you paid IEEPA duties between February 1, 2025, and February 19, 2026. Entries liquidated within the past 80 days may still be eligible through standard CAPE.
Plaintiffs should also confirm with counsel that their entries are covered by an applicable court order before beginning the declaration process.
Where Refund Processing Stands
As of September 11, 2026, CBP had accepted approximately 286,044 CAPE declarations covering approximately $134.7 billion in potential and certified refunds. Of that amount, approximately $122 billion had been certified and sent to the U.S. Department of the Treasury for disbursement. Phase 3 adds a new category of entries to this pipeline rather than replacing the processing already underway for Phase 1 and Phase 2 entries.
What Importers Should Do Now
- Determine whether you are a plaintiff in one of the more than 4,000 IEEPA cases assigned to Judge Eaton or a likely member of the certified class.
- If you are a plaintiff, confirm your IOR number was submitted to CBP by July 30, 2026; if not, watch for CBP’s supplemental instructions.
- Confirm who will submit each CAPE declaration: the importer of record or the customs broker that filed the entries.
- Confirm ACH refund information is current in the ACE Portal.
- Identify which finally liquidated entries may qualify under the CIT’s reliquidation order.
- If you are not a plaintiff, check whether any entries liquidated within the past 80 days can still be filed through standard CAPE, and watch for the October 22 scheduling order, further court action, and CBP instructions in the class case.
- Coordinate with counsel before changing any protest or other refund-preservation strategy.
ASK Alba™: Contact the Alba team to confirm which refund path applies to your entries, prepare entry lists, and coordinate CAPE filings. Subscribe to the ASK Alba™ Trade Brief for timely updates on tariffs, trade remedies, and U.S. import compliance.
References
- Opinion and Order Granting Class Certification, Freestyle World, Inc. v. U.S. Customs and Border Protection, CIT No. 26-01088 (Oct. 8, 2026)
- CBP Declaration of Brandon Lord, Executive Director of Trade Programs, Freestyle World, Inc. v. U.S. Customs and Border Protection, CIT No. 26-01088, Doc. 50 (filed Sept. 15, 2026)
- Thompson Hine SmarTrade: CIT Orders CBP to Process IEEPA Tariff Refunds for Phase 3 Finally Liquidated Entries (summary of the July 17, 2026 CIT order)
- CBP: International Emergency Economic Powers Act (IEEPA) Duty Refunds (CAPE overview and FAQs, including who may file)
Originally published September 22, 2026. Updated October 6 and October 13, 2026, to reflect the launch of CAPE Phase 3, clarify the July 30 IOR-submission requirement and who may file CAPE declarations, and add the October 8 class certification.
Subscribe to the ASK Alba™ Trade Brief for timely updates on tariffs, trade remedies and U.S. import compliance. Contact Alba
