Updated August 25, 2026: The refund process ultimately settled on CBP's CAPE (Consolidated Administration and Processing of Entries) system rather than the fully automatic, court-ordered process this article originally described. CAPE Phase 1 has been live since April 20, 2026, and roughly $165 billion in IEEPA duties are moving through it. As of August 25, 2026, CBP prohibits initiating an IEEPA refund by PSC. Deadlines still roll entry-by-entry through late 2026 and into 2027. The recovery ladder is CAPE first; then a Form 19 protest (generally 180 days after liquidation) when CAPE will not take the entry; then a CIT suit within two years in some cases. That does not mean the refund is gone. See our IEEPA refunds & CAPE guide and the IEEPA refund deadline tracker.
On March 4, 2026, the Court of International Trade ordered CBP to liquidate and reliquidate entries without IEEPA duties, following the Federal Circuit's March 2 mandates in V.O.S. Selections v. Trump. The DOJ's motion to stay was denied. An appeal is expected. Here's what importers need to know.
Federal Circuit Issues Mandates
On March 2, 2026, the U.S. Court of Appeals for the Federal Circuit issued its mandates in V.O.S. Selections v. Trump, formally implementing the appellate court's judgment that IEEPA-based tariffs are unlawful. The issuance of mandates is a procedural step that transfers authority back to the lower court — in this case, the Court of International Trade (CIT) — to enforce the ruling.
The mandates followed the Supreme Court's February 20 decision striking down IEEPA tariffs as unconstitutional. With the Federal Circuit's mandates now in hand, CIT had the authority to issue specific orders directing CBP on how to implement the ruling.
CIT Judge Eaton's March 4 Order
On March 4, CIT Judge Eaton issued an order in Atmus Filtration Technologies, Inc. v. United States that directs CBP to take specific action on IEEPA-affected entries:
- Liquidate unliquidated entries without IEEPA duties — Entries that have not yet liquidated must be liquidated without the assessment of any IEEPA tariffs
- Reliquidate entries that have already liquidated — Entries that were previously liquidated with IEEPA duties assessed must be reliquidated without those duties, and refunds issued accordingly
At the time, this was a significant development because it signaled the refund process could become court-directed, with CBP ordered to act rather than importers individually filing Post Summary Corrections (PSCs) or protests. As the process has since unfolded, however, importers still need to file through CBP's CAPE process (or a Form 19 protest when CAPE will not take the entry) to recover their IEEPA duties — see the updated guidance above.
CIT's Jurisdiction Argument
A key aspect of Judge Eaton's order is the court's position on its own jurisdiction. The CIT has exclusive, nationwide jurisdiction over customs matters under 28 U.S.C. Section 1581. The court characterized its order not as a "universal injunction" (which has faced criticism in other legal contexts) but as an exercise of its statutory authority over all customs duty matters.
This distinction matters because it bolsters the order's legal foundation against potential challenges. The CIT is asserting that when it rules on the lawfulness of a tariff, that ruling necessarily applies to all entries subject to that tariff — not just the entries of the specific plaintiffs before the court.
DOJ's Response and Expected Appeal
The Department of Justice filed a motion to stay Judge Eaton's order, arguing that immediate implementation would cause administrative disruption and that the government intended to appeal. The motion to stay was denied.
However, an appeal to the Federal Circuit remains expected. The DOJ has signaled its position that:
- For unliquidated entries, CBP should comply with court orders but the government reserves the right to appeal the scope of the order
- For entries already liquidated and final, the DOJ has argued that importers should file individual lawsuits at CIT to recover duties, rather than receiving automatic reliquidation
This legal uncertainty means the situation could still evolve. While Judge Eaton's order is currently in effect, importers should be prepared for potential modifications if an appellate court intervenes.
March 6 Non-Public Conference
A non-public conference was held on March 6, 2026, to discuss the logistics of the refund process, covering:
- The mechanics of how CBP would process the reliquidations
- Timeline expectations for refund disbursements
- How to handle entries where the protest period had already expired
- Coordination between CBP's systems and the court's directives
That conference fed into the CAPE process CBP ultimately stood up — see the update at the top of this article for the current mechanics.
What This Means for Importers
The Refund Process Runs Through CAPE
At the time, the court's order suggested importers might not need to individually file to recover IEEPA duties. In practice, the refund process settled on CBP's CAPE system. The importer of record or original filer submits; Strix prepares and does not file CAPE as broker of record on someone else's entries. As of August 25, 2026, CBP prohibits initiating an IEEPA refund by PSC. Protest is the next rung when CAPE will not take the entry. See the update at the top of this article.
What You Should Do Now
Monitor developments closely — The legal situation remains fluid with a likely appeal. Stay informed through your customs broker and industry associations like NCBFAA.
Ensure ACH enrollment — CBP issues all refunds electronically via ACH. If you are not enrolled, you cannot receive your refund regardless of court orders. Read our ACH enrollment guide for instructions.
Work with your customs broker — Your broker can help you understand which of your entries are affected, estimate potential refund amounts, and ensure your account is properly set up to receive refunds.
Maintain your records — Keep all documentation related to IEEPA-affected entries organized and accessible. Recovery now runs through entry-by-entry CAPE, and a Form 19 protest when CAPE will not take the entry — organized records are what make those filings possible.
Be patient but vigilant — The scale of this refund operation is unprecedented. Processing will take time, and the pending appeal adds uncertainty. Do not assume refunds will arrive immediately.
What About Entries Where the Protest Period Expired?
This was one of the unresolved questions heading into the March 6 conference. The DOJ has argued that importers with fully liquidated and final entries (where the 180-day protest window has closed) may need to file separate lawsuits at CIT. Judge Eaton's order appears to cover reliquidation broadly, but the treatment of these entries could be a point of contention on appeal.
Recovering your IEEPA duties through CAPE
If you paid IEEPA duties, start with CAPE. Strix consults and prepares; the IOR or original filer submits through ACE. Free eligibility review.
How Strix Can Help
Strix is a licensed customs brokerage with over 20 years of experience navigating complex trade situations. As the IEEPA refund process unfolds through the courts, our team can help you:
- Track your affected entries and estimate potential refund amounts
- Verify your ACH enrollment to ensure you can receive refunds
- Monitor court developments and advise on any required action
- Handle ongoing customs clearance as trade policy continues to evolve
The trade landscape is changing rapidly. Having an experienced customs broker in your corner ensures you don't miss critical developments or deadlines.
Contact Our Brokerage Team | Call Us: (406) 922-6600
This article was published on March 5, 2026, and updated August 25, 2026 to reflect how the refund process has unfolded since. See our IEEPA refunds & CAPE guide and the IEEPA refund deadline tracker for the current process.