The Supreme Court told CBP to give your IEEPA tariff money back in February. It's now June, and most importers haven't seen a dime. With $166 billion in duties collected, only $20.6 billion refunded, and a government appeal deadline hitting June 6, your refund window could slam shut — or blow wide open. Here's exactly where things stand and what you need to do this week.
On May 27, 2026, Judge Richard K. Eaton of the U.S. Court of International Trade did something unusual: he ordered the Commissioner of U.S. Customs and Border Protection to personally appear before the court and explain why CBP wasn't moving faster on refunds. That's not a routine scheduling matter. That's a federal judge losing patience with an agency sitting on $166 billion in duties that the Supreme Court already ruled were illegally collected.
The numbers tell the story. As of CBP's May 26 declaration: $20.6 billion in refunds have been sent to the U.S. Treasury for payment. Roughly $85 billion sits certified or pending in the CAPE system. And tens of billions more remain locked behind Phase 1 limitations, waiting for a Phase 2 that has no announced launch date.
Meanwhile, the Department of Justice has until June 6, 2026, to file an appeal challenging the CIT's authority to order nationwide refunds. If DOJ pulls the trigger, payments could freeze. If they don't, the floodgates should open wider. Either way, this week matters more than any since the Supreme Court's February 20 decision.
How We Got Here: From Supreme Court Victory to Bureaucratic Gridlock
On February 20, 2026, the U.S. Supreme Court ruled in Learning Resources, Inc. v. United States that the International Emergency Economic Powers Act (IEEPA) does not authorize the president to impose tariffs. Full stop. The tariffs that had been collected under IEEPA authority — covering imports from virtually every trading partner — were invalid from day one.
The scope is staggering: over 330,000 importers of record, more than 53 million entry summaries, and approximately $166 billion in duties and estimated duty deposits. When CBP's Executive Director of Trade Programs, Brandon Lord, laid out those numbers in a March 6 declaration, the court understood this wasn't a simple "cut the checks" situation.
Judge Eaton's initial March 4 order had directed CBP to liquidate and reliquidate "any and all" entries without IEEPA duties. Two days later, faced with CBP's declaration that manual processing would require an estimated 4.4 million staff hours, the judge suspended immediate compliance and gave CBP time to build an automated solution.
CAPE: The System CBP Built From Scratch
CBP's answer was CAPE — Consolidated Administration and Processing of Entries — a new module within the Automated Commercial Environment (ACE) designed specifically for IEEPA refund processing. By late March 2026, CBP reported development progress: the Claim Portal was 85% complete, Mass Processing at 60%, Review and Liquidation/Reliquidation at 80%, and Refund Processing at 75%.
CAPE launched Phase 1 on April 20, 2026. Here's how it works:
- Who submits: The importer of record (IOR) or the customs broker who originally filed the entries
- How: Upload a CSV file (called a "CAPE Declaration") through a new CAPE tab in the ACE Secure Data Portal
- Limit: Each declaration is capped at 9,999 entries, but multiple declarations can be submitted
- File size: Cannot exceed 1MB per declaration
- Format: Must use CBP's specific template (ACEP_CapeEntryNumberUploadTemplate)
One critical detail that's caught importers off guard: if a single entry number in your CSV contains an error, CBP rejects the entire submission. You don't get partial credit. The system requires exact, validated entry summary numbers — no typos, no formatting variations, no entries that don't meet Phase 1 eligibility criteria.
What Phase 1 Covers — And What It Doesn't
Phase 1 is narrower than many importers expected. It covers:
- Unliquidated entries subject to IEEPA duties
- Entries within approximately 80 days of liquidation
Phase 1 explicitly excludes:
| Excluded Category | Why |
|---|---|
| Entries flagged for reconciliation | Require separate settlement process |
| Entries designated on drawback claims | Overlapping refund mechanisms |
| Entries subject to an open protest | Must withdraw protest first or wait |
| Entries not filed in ACE | No electronic record to process |
| Entries missing ACE liquidation status | System can't validate eligibility |
| AD/CVD entries | Complex duty calculations require manual review |
| Finally liquidated entries beyond 80-day window | Awaiting Phase 2 functionality |
| Informal entries | Court expressed "particular concern" about these |
For importers whose significant exposure falls into excluded categories, the message is frustrating but clear: you're waiting for Phase 2, and CBP hasn't announced a deployment date.
The Refund Math: $20.6 Billion Down, $145 Billion to Go
By May 26, 2026, CBP reported that 177,396 additional entries had reached final liquidation or been reliquidated without IEEPA duties over the prior two weeks. The $20.6 billion finalized represents roughly 12.4% of total IEEPA duties collected.
Here's the breakdown as we understand it:
| Status | Approximate Amount |
|---|---|
| Refunds finalized and sent to Treasury | $20.6 billion |
| Certified/pending in CAPE pipeline | ~$85 billion |
| Not yet in CAPE (excluded or unfiled) | ~$60 billion |
| Total IEEPA duties collected | ~$166 billion |
The $85 billion in the CAPE pipeline isn't money in anyone's bank account yet. CBP indicated that valid refunds would generally be issued within 60 to 90 days following acceptance of a CAPE Declaration. First ACH payments began flowing the week of May 12, 2026, but the pace has been uneven.
As of late March, 26,664 importers had completed electronic refund setup in ACE, covering approximately 78% of affected entries (roughly $120 billion in principal). That means 22% of affected entries — belonging to importers who haven't set up ACH — aren't even eligible to receive electronic refunds yet. Electronic refunds are mandatory. No paper checks.
The June 6 Appeal Deadline: The Biggest Risk Factor
Everything described above operates under the CIT's nationwide refund order — first issued in Atmus Filtration, then carried forward in the current lead case, Euro-Notions Florida, Inc. v. United States. The government has until June 6, 2026 to appeal that order to the U.S. Court of Appeals for the Federal Circuit.
What an appeal could mean:
- If DOJ appeals and obtains a stay: Refund payments could be suspended pending appellate review. The $85 billion in the CAPE pipeline could freeze. New submissions might be accepted but not processed.
- If DOJ appeals without a stay: Payments continue under the current framework, but uncertainty increases. Market participants pricing refund rights would apply steeper discounts.
- If DOJ doesn't appeal: The CIT order becomes final. CBP would face intensified pressure to accelerate Phase 2 and resolve excluded categories. Judge Eaton's show-cause order gains even more teeth.
The government's argument on appeal would likely challenge whether the CIT has authority to order nationwide refunds — benefiting all 330,000+ importers — based on litigation brought by individual plaintiffs. It's a jurisdictional argument, not a merits one. The Supreme Court already settled the merits.
The Court-CBP Standoff: What the Show-Cause Order Means
Judge Eaton's May 27 order requiring the CBP Commissioner to appear isn't decorative. It signals the court believes CBP may not be fully complying with its orders. Specifically, the court noted it was "particularly concerned about the millions of informal entries where liquidation" status is unclear.
This matters because informal entries — those valued under $2,500 — represent a massive volume of transactions that may not have standard liquidation records in ACE. If CBP can't process these through CAPE, millions of small importers (including e-commerce sellers and small businesses) could be left without a clear path to refunds.
The court-administration tension also raises the stakes for the June 6 appeal decision. A government appeal filed in the shadow of a show-cause order would signal a willingness to fight on multiple fronts simultaneously.
What You Should Do This Week
1. Check your ACH setup in ACE immediately. If you haven't registered for electronic refunds, you cannot receive IEEPA refund payments regardless of CAPE status. Log into the ACE Secure Data Portal and verify your Automated Clearing House information is current and active.
2. File your CAPE Declaration if eligible. If your entries qualify for Phase 1 (unliquidated or within 80 days of liquidation, not in an excluded category), submit now. Don't wait for Phase 2 clarity — get eligible entries into the pipeline.
3. Validate your CSV meticulously. One bad entry number rejects the entire submission. Cross-reference every entry summary number against your ACE records. Use the exact CBP template. Consider submitting in smaller batches if you have thousands of entries.
4. Continue filing protests on liquidated entries. STR and other trade law firms are unanimous: don't rely solely on the CIT's nationwide order. File timely protests on entries as they liquidate. If the government's appeal succeeds in narrowing the order, only importers who preserved their individual rights will be protected.
5. Monitor the June 6 deadline. If DOJ files an appeal, you'll need to reassess your financial planning around refund timing. If they don't, expect accelerated processing pressure on CBP.
6. Evaluate whether to withdraw existing protests. For entries where you filed a protest solely to challenge IEEPA duties, CBP has indicated those protests may be withdrawn to make entries eligible for CAPE processing. But consult counsel before withdrawing — once withdrawn, you lose that protest right permanently.
What's Coming Next
The next 30 days will define the trajectory of the largest tariff refund in U.S. history:
- June 6: Government appeal deadline. The single most important date on the calendar.
- Phase 2 (TBD): Expected to address AD/CVD entries, finally liquidated entries beyond Phase 1's window, reconciliation entries, and informal entries. No announced date.
- CBP Commissioner appearance: Judge Eaton's show-cause order will force direct answers about compliance timelines and informal entry handling.
- Secondary market activity: Trading firms are already purchasing refund rights from importers who need liquidity now. If you're cash-constrained, this is an option — but discounts are steep given appeal uncertainty.
The Bottom Line
The IEEPA refund isn't a single event — it's a multi-month process with real risk of disruption. The Supreme Court gave importers the legal victory. The CIT gave them a nationwide enforcement mechanism. But between CBP's system limitations, Phase 1 exclusions, and the looming appeal deadline, getting your actual money back requires active management.
Don't assume refunds will happen automatically. Don't assume your broker is handling everything. And don't assume the June 6 deadline is someone else's problem — if the government appeals, every importer's timeline shifts.
TariffLens tracks IEEPA refund eligibility across your entry portfolio and flags liquidation deadlines before they pass — because in a $166 billion refund process, missing a filing window is the one mistake you can't fix.
This article is for informational purposes only and does not constitute legal, tax, or customs advice. Consult a licensed customs broker or trade attorney for guidance specific to your situation.