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IEEPA Refunds for Reconciliation Entries

Customs and Border Protection (CBP) informed the U.S. Court of International Trade (CIT) on June 9 that it is actively working to expand its tariff refund processing system to accommodate entries flagged for reconciliation, with that capability expected to go live on June 29.

The update came as part of CBP's ongoing reporting to the court on the rollout of the Consolidated Administrative and Processing of Entries (CAPE) Phase 1 system, which has emerged as the government's primary mechanism for processing refunds of duties collected under the International Emergency Economic Powers Act (IEEPA).

By the Numbers

Since CAPE Phase 1 launched, CBP reported the following milestones:

16 million+ entries processed through the system

$89 billion+ in potential and certified IEEPA duty refunds accepted for processing

$22 billion in refunds completed and forwarded to the Treasury Department for disbursement

What Comes Next

Once the reconciliation functionality is deployed later this month, CBP said it will move to broaden CAPE's scope further, extending coverage to additional categories of entries, including those filed by plaintiffs in actions currently before the Court of International Trade that require reliquidation.

DOJ Pushes Back

Despite the operational progress, the Department of Justice asked the CIT not to lift its current suspension of immediate compliance, arguing that doing so prematurely could disrupt ongoing legal proceedings.

The government’s appeal is mainly centered around not wanting to refund IEEPA tariffs paid on entries liquidated more than 90 days to anyone who has not filed a lawsuit.

At Allyn International, we are committed to supporting the global trade community with strategic, forward-thinking solutions to help navigate today’s complex tariff landscape. If you have questions about tariffs or would like to explore strategies to reduce their impact on your business operations, our team is here to help. Contact us today for a consultation at sales@allynintl.com. 

Contributor: Matthew Dreckman

About Allyn International

Allyn International provides high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance. Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North and South America, Europe and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China, Prague, Czech Republic, and Dubai, U.A.E. For more information, visit www.allynintl.com.