CAPE Phase 2 and IEEPA Refunds: What Importers Need to Know to Get Their Money Back from the U.S. Government

U.S. importers that paid duties under the International Emergency Economic Powers Act, commonly called IEEPA, may now have a pathway to recover those duties through CBP’s CAPE process. CAPE stands for Consolidated Administration and Processing of Entries. It is a new function inside the ACE Portal that allows importers of record and certain customs brokers to request IEEPA refunds electronically. CBP launched Phase 1 on April 20, 2026, and expanded the process on June 29, 2026, to include certain entries flagged for reconciliation.

What CAPE is designed to do

CAPE was created to avoid processing IEEPA refunds one entry at a time. Instead, CBP uses CAPE declarations to identify qualifying entries, remove the IEEPA Chapter 99 HTS numbers, recalculate the duty without IEEPA, and issue consolidated refunds with interest when applicable. CBP states that refunds are consolidated by importer of record or by the party designated through CBP Form 4811, and by liquidation date.

In practical terms, CAPE is the claim and processing tool. It is not a new protest, not a post summary correction process, and not a replacement for normal customs compliance review. It is a CBP managed refund pathway for valid IEEPA duty refunds.

What changed in CAPE Phase 2

Phase 2, effective June 29, 2026, opened CAPE to certain entries that were flagged for reconciliation. This is important because many importers could not include reconciliation flagged entries in Phase 1.

Under the June 29 expansion, CAPE will accept entry types 01, 02, and 06 that were flagged for reconciliation, but only when the reconciliation entry, entry type 09, has not already been filed. The same timing limitation from Phase 1 still applies: the entry must be unliquidated or within 80 days of liquidation.

The sequence matters. For eligible reconciliation flagged entries, the importer or qualifying filer should first submit the CAPE declaration. Once accepted, CBP removes the IEEPA duty from the underlying flagged entries before the reconciliation entry is filed. Then the reconciliation entry may be filed separately, without carrying the IEEPA refund calculation inside the reconciliation math.

What CAPE Phase 2 does not cover yet

CAPE Phase 2 does not cover every reconciliation situation. Entries flagged for reconciliation where the type 09 reconciliation entry is already on file are not included in the June 29 deployment. CBP has stated those entries will be included in a future CAPE phase.

Also, if a reconciliation deadline is close to expiring, CBP says the trade must prioritize filing the reconciliation. CBP specifically gives the example of a deadline that is less than 30 days away.

That means importers should not delay a required reconciliation filing just because they are waiting on CAPE. Missing a reconciliation deadline can create a separate compliance issue.

Who can file a CAPE declaration

A CAPE declaration may be filed by the importer of record or by the customs broker that filed the original entry summaries on behalf of that importer. CBP’s Phase 1 guidance states that the CAPE declaration may only be submitted by the importer of record associated with the entry summaries or by the broker that filed those entry summaries.

That is a critical point. A customs broker should not assume it can file CAPE claims for an importer just because the importer asks. The broker needs to confirm that it has proper authority and that it is eligible to submit for the entries involved.

What goes into a CAPE declaration

CBP’s process is intentionally simple. The filer uploads a CSV file through the CAPE tab in ACE. The file lists entry numbers for which IEEPA duties were paid and for which the filer is requesting a refund. CBP states that only entry numbers are required in the CSV file, and one declaration can list up to 9,999 entry numbers. Additional entry numbers can be submitted through separate CAPE declarations.

After submission, ACE validates the file and the entries. If the file is rejected, the filer should review the error, correct the issue, and resubmit. If only certain entries fail the entry level validations, ACE may remove those entries from the declaration and continue processing the entries that passed validation.

Common reasons an entry may not be accepted

In Phase 1, CBP identified several entry level validation issues that could prevent an entry from being accepted. These included reconciliation flagged entries, reconciliation entries, drawback related entries, USMCA duty deferral entries, entries with open or suspended protests, certain TIB liquidation statuses, pending AD or CVD entries, entries more than 80 days past liquidation, and situations where the goods value was not allowed on the IEEPA HTS line.

Phase 2 changes one of those points by allowing certain reconciliation flagged entries, but only if the type 09 reconciliation entry has not already been filed. Other Phase 1 filing and processing requirements remain in effect.

How the refund is calculated

Once the CAPE declaration is accepted, CBP removes the applicable IEEPA Chapter 99 HTS numbers from the entry summary line level and creates a new minor version of the entry summary. CBP then recalculates the duties, taxes, and fees as though the IEEPA duties were never owed. The projected refund is the difference between what was paid and what is owed after the recalculation.

CBP also states that interest is calculated on eligible refunds in accordance with 19 CFR 24.36. The eCFR provides that when a refund of excessive duties, taxes, fees, or interest is due upon or before liquidation, reliquidation, or reconciliation, the refund is prepared for the person to whom the refund is due, and electronic refund rules apply.

How and when the refund is paid

CBP issues refunds electronically through ACH. Importers and any party designated to receive refunds should be enrolled for ACH refunds before the refund is issued. CBP has warned that lack of banking information can delay delivery, and current refund rules also limit interest when CBP cannot deliver an electronic refund because the recipient failed to provide the required banking information.For ordinary unliquidated entries that are not warehouse entries and are not suspended, extended, or under review, CBP has stated that valid IEEPA refunds generally may be expected within 60 to 90 days after CAPE declaration acceptance, unless CBP identifies a compliance concern requiring further review.

Who receives the refund

Refunds generally go to the importer of record unless another party has been properly designated, such as through CBP Form 4811, or unless another rule applies. CBP’s CAPE guidance references consolidated refunds by importer of record or designated 4811 party. The refund regulation also addresses who is entitled to receive customs refunds, including certain owner, transferee, and surety situations.This matters when a supplier, broker, customer, or related company asks to have a refund deposited into a different bank account. The bank account should match the party legally entitled to receive the refund or the party properly designated under CBP rules. Importers and brokers should be careful before redirecting refund proceeds to a third party.

What importers should do now

Importers should first identify all entries where IEEPA duties were paid. Then they should separate those entries into practical categories: unliquidated entries, entries within 80 days of liquidation, reconciliation flagged entries with no type 09 filed, reconciliation entries already filed, drawback related entries, protest related entries, and entries with other special statuses.

For entries that qualify under Phase 2, the importer or eligible filing broker should file the CAPE declaration before filing the reconciliation entry, unless the reconciliation deadline requires immediate action. Once the CAPE declaration is accepted, the reconciliation entry can be filed separately.

For entries that do not yet qualify, the importer should monitor future CBP guidance. CBP has stated that future CAPE enhancements will be announced through CSMS messages.

Customs broker considerations

Customs brokers should confirm three things before helping with CAPE filings.

First, confirm authority. The broker should have a valid power of attorney and should confirm whether it filed the original entry summaries. CBP’s guidance limits CAPE submission to the importer of record or the broker that filed the entry summaries.

Second, confirm sequencing. For reconciliation flagged entries, the CAPE declaration should be filed before the type 09 reconciliation entry if the importer wants to use the June 29 Phase 2 functionality. Once the type 09 reconciliation has been filed, those underlying entries are not eligible for this phase.

Third, confirm refund payment instructions. ACH enrollment should be handled carefully, and brokers should be cautious about using their own bank account to receive another party’s refund unless the legal authority, client authorization, accounting treatment, and compliance risk have been reviewed.

Fraud warning

CBP has warned that scammers may use email, social media, or other communication methods to try to obtain account information from importers in connection with IEEPA refunds. Importers should use official CBP and ACE channels, verify any payment instruction requests, and avoid sending banking information in response to unsolicited messages.

Bottom line

CAPE Phase 2 is a meaningful expansion of the IEEPA refund process, but it is not a blanket refund for every entry. It mainly helps importers with entries flagged for reconciliation where the reconciliation entry has not yet been filed, and where the entry is unliquidated or within 80 days of liquidation.

The most important rule is sequence: file the CAPE declaration first, then file the reconciliation entry. The second most important rule is eligibility: entries with a reconciliation already on file must wait for a later CAPE phase.

Importers should act quickly, organize their entry data, confirm ACE and ACH access, review reconciliation deadlines, and work with a customs broker or trade professional who understands both the CAPE process and the reconciliation implications.