New CIT Action in IEEPA Refund Case

The U.S. Court of International Trade (CIT) issued a new order this week regarding the implementation of refunds related to IEEPA tariffs. After the Supreme Court struck down the tariffs, CIT directed Customs and Border Protection (CBP) to complete liquidation or reliquidation of all affected entries subject to IEEPA duties and to refund the duties paid. CBP informed the court that it could not immediately comply; however, CBP did begin developing an automated refund system, known as CAPE. The court temporarily suspended immediate compliance to allow for CAPE’s development. CAPE Phase I launched on April 20, 2026, and currently only applies to a subset of eligible entries. During this period, CBP has also continued to liquidate entries with IEEPA, despite the statutory requirements of 19 U.S.C. §1505(b).  

On May 27, 2026, CIT released an order addressing the current and future state of CBPs response to the IEEPA decisions. CIT has now lifted the suspension of immediate compliance and directed all parties to show cause why the suspension should not be removed. The court has requested a brief be submitted by both parties by June 4, 2026 and has scheduled a hearing for June 9, 2026. This order also directs the Commissioner of CBP to appear in person to this hearing to address the anticipated timeline for full compliance. This procedural step marks a notable development in how the court is supervising the refund process.  

Allyn continues to monitor these developments closely and supports importers navigating refund processing, protest deadlines, and other compliance considerations.  

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: Audrey Silcox

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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.