The global trade landscape recently underwent a regulatory shake-up, with ripple effects spreading across the operations of importers, freight forwarders, customs brokers, and U.S. Customs and Border Protection (CBP). The landmark Supreme Court ruling in Learning Resources, Inc. v. Trump struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA), and introduced a new layer of uncertainty for global trade.
Any material shift in tariff authority or refund eligibility carries real commercial implications for importers. The invalidation of IEEPA tariffs effectively turns more than $160 billion of paid duties into refundable overpayments and, for many importers, represents a meaningful impact on earnings and cash flow. Companies need to understand their exposure and determine operational next steps, both in the immediate and long term.
Don’t Break Out the Champagne Just Yet
Before importers start celebrating the end of IEEPA tariffs and the potential boost to their bottom line, they need to recognize that the ruling doesn’t eliminate the broader use of tariffs as a policy tool. Tariff volatility will continue, just under different legal and regulatory auspices.
Other mechanisms, including Section 232 (currently imposed on commodities and products such as lumber, steel, trucks and furniture) and Section 301 tariffs (primarily impacting goods imported from China) remain fully in force. Meanwhile, the Trump Administration is pursuing other discretionary trade powers to levy additional tariffs, including quickly imposing a temporary 10% global tariff under Section 122 of the Trade Act of 1974.
Going forward, the country-based IEEPA tariffs may be replaced by more commodity-focused duties, such as additional Section 232 tariffs that empower the government to charge duties, pending the results of a Department of Commerce investigation into the imports’ effects on national security. The government is currently conducting multiple Section 232 investigations — including everything from semiconductors, processed critical minerals and wind turbines to pharmaceuticals, aircraft and plastic piping — which may lead to new tariffs.
Similarly, the Office of the U.S. Trade Representative has initiated large-scale Section 301 investigations related to forced labor and the structural excess capacity and production in manufacturing sectors, targeting up to 60 countries. This move signals a more aggressive and expansive use of the tool and foreshadows additional tariffs.
In addition, the rarely-used Section 338 of the Tariff Act of 1930, imposed on countries that “discriminate” against commerce of the U.S., could let the government continue its tariff onslaught in the absence of IEEPA, prolonging tariff uncertainty and further complicating sourcing decisions.
Where does this leave importers today? While they wait to see what new replacement tariffs may come down the pipeline, companies can evaluate their eligibility for refunds and learn more about the new CBP infrastructure required to potentially secure them.
The $160-Billion Refund
More than 330,000 importers are eligible for IEEPA refunds, to the tune of approximately $160 billion across more than 55,000 entries. In response, CBP officially confirmed the launch of Phase 1 of the Consolidated Administration and Processing of Entries (CAPE) tool on April 20, 2026 to manage the refund process.
CAPE exists within the Automated Commercial Environment (ACE), CBP’s portal for processing, collecting, refunding and recording tariffs. It’s mean to streamline the submission and processing of refund requests for duties imposed under IEEPA. CAPE is designed to process claims more efficiently than traditional post-summary correction (PSC) filings, enabling batch handling of IEEPA duty refunds rather than processing refunds on an entry-by-entry basis.
Importers of record (IORs) may submit declarations for their own entries, while customs brokers may submit refund requests for entries filed on behalf of importers. CBP guidance notes that Phase 1 is limited to “certain unliquidated entries and certain entries that are no more than 80 days past liquidation.”
Recommended First Steps
With the aim of avoiding any hiccups in their IEEPA refund process, companies need to consider the following:
- If not already set up, create an ACE Portal account through CBP.
- Provide CBP with Automated Clearing House (ACH) banking information via the ACE portal in order to receive electronic refunds.
- Identify affected entries and confirm entry status (liquidated or unliquidated).
- Compile entry summaries and duty payment records.
- Monitor CBP implementation guidance for any updates.
According to CBP guidance, IORs and customs brokers will be able to file a CAPE Declaration, using a Comma-Separated Values (.CSV) file, through their web-based ACE Portal account. The CAPE Declaration comprises the list of IEEPA duty entries for which refunds of IEEPA duties are being requested.
In general, the submission and refund process will follow this pathway:
- Importer identifies affected entries.
- Importer or broker submits declaration through CAPE (within ACE). Declaration can include multiple entries.
- ACE validates entries and recalculates duties.
- CBP reviews and confirms refund amount.
- The consolidated refund payment, including interest, is paid through ACH (within 60 to 90 days, unless a compliance concern requires further CBP review).
In the wake of the Supreme Court decision, many importers and customs brokers are turning to modern global trade-compliance technology to transform a time-sensitive and complex refund opportunity into an automated process. Purpose-built software tools can automatically review entry summaries and payment records, using data triggers to flag entries that may be eligible for refunds. Plus, with a single view into all impacted transactions, compliance technology can provide a comprehensive audit trail to provide full traceability if CBP needs to validate classification or other details.
Given the complexity of the IEEPA refund process, some importers may choose to work with customs consultants or duty-recovery software specialists to clarify and streamline the refund workflow. Professionals specializing in duty recovery and drawback services can help map and quantify the financial impacts of IEEPA on import activities, while reviewing entry and protest status to correct unliquidated entry summaries prior to liquidation, preserving potential refund rights.
While importers educate themselves on the refund process, business resiliency moving forward is equally important. With tariff volatility likely to remain a structural element of the global trade environment for the next few years, it’s imperative that importers have the right global trade tooling in place to continually monitor, model and calibrate their pricing, sourcing and compliance strategies. As the supply chain priority focuses on responsiveness, importers and brokers that embrace agility, intelligent technology and data-driven compliance strategies are better positioned to succeed in the face of quickly changing conditions.
Jackson Wood is director of industry strategy, global trade intelligence at Descartes.