Your IEEPA Entry Is Not CAPE Phase 1 Eligible — Now What? Refund Options for Liquidated Entries (April 2026)
Your IEEPA Entry Is Not CAPE Phase 1 Eligible — Now What?
The CBP CAPE tool went live on April 20, 2026 and is now processing IEEPA tariff refund requests. But thousands of importers who logged in last week discovered the same thing: their entries do not qualify for Phase 1.
Phase 1 is intentionally narrow. It only covers two categories of entries: (1) entries that have not yet been liquidated by CBP, and (2) entries that were liquidated within the past 90 days under CBP's voluntary reliquidation window. If your IEEPA-affected entries were liquidated in calendar year 2025 or in early 2026 outside that window, the CAPE Declaration filing will not produce a refund — your entries fall into Phase 2 territory or require a separate legal pathway.
This article walks through the three real refund options for importers whose entries do not qualify for CAPE Phase 1, with realistic timelines, costs, and decision criteria for each. If your entries do qualify for Phase 1, see our CBP CAPE Tool Launch Guide and the broader IEEPA Refund Guide for filing instructions.
First, Confirm Your Entries Are Actually Outside Phase 1
Before assuming Phase 1 will not work, double-check the eligibility math. The 90-day voluntary reliquidation window runs from each entry's liquidation date — not from the CAPE launch date. As of April 26, 2026, an entry liquidated as recently as late January 2026 is still inside the 90-day window and qualifies for Phase 1.
Two specific situations are commonly confused with Phase 1 ineligibility:
Suspended-liquidation entries. Entries flagged for AD/CVD, Section 232 review, or other suspended-liquidation reasons may show a liquidation status of "suspended" rather than "liquidated." These count as unliquidated for CAPE purposes and qualify for Phase 1 even if they entered years ago.
Entries with a protest already filed. If your customs broker filed a protest under 19 U.S.C. § 1514 to preserve refund rights before CAPE existed, the entry is in protest-pending status. CBP has stated that protest-pending entries can be folded into Phase 2 or resolved via the protest itself — you do not need to withdraw the protest to file CAPE in Phase 1, but you also cannot collect twice.
If after this check your entries are genuinely outside the Phase 1 scope — typically liquidated between February 2025 and late January 2026, with no pending protest — you have three real paths to a refund.
Option 1: File a Protest Under 19 U.S.C. § 1514 (If Within 180 Days of Liquidation)
The classical refund mechanism for liquidated entries is a protest filed under 19 U.S.C. § 1514. Importers have 180 days from the date of liquidation to file a protest with CBP challenging the duty assessment. The protest is filed electronically through ACE, costs nothing in government filing fees, and stays the entry's finality until CBP rules on the merits.
For IEEPA-based duties, a protest filed within the 180-day window has a strong legal posture: the underlying tariff was struck down by the Supreme Court in *Learning Resources v. Trump* on February 20, 2026. CBP has indicated it will hold IEEPA-related protests pending the rollout of CAPE Phase 2, but the protest preserves your statutory refund rights even if Phase 2 takes longer than expected.
When this option fits. Your entry was liquidated between approximately late October 2025 and late January 2026 — recent enough that the 180-day protest window is still open, but old enough that the 90-day CAPE Phase 1 window has closed.
Cost and timeline. Filing a protest yourself or through your customs broker is typically free or in the low hundreds of dollars in broker fees. Trade attorney involvement is optional. Protests on IEEPA grounds are likely to sit unresolved until CAPE Phase 2 launches, but the filing itself is fast and inexpensive insurance.
Critical action.** Calculate your 180-day clock from the liquidation date stamped on each entry's CBP Form 7501 — not from the entry summary date. Liquidation typically occurs 314 days after entry, so for a typical entry filed in early 2025, the 180-day protest clock may already have run. **Do not wait.
Option 2: File a Case in the U.S. Court of International Trade (CIT)
For older liquidated entries — those beyond the 180-day protest window — the next pathway is a direct lawsuit in the U.S. Court of International Trade under 28 U.S.C. § 1581(i). Many of the early IEEPA challenges, including *Learning Resources v. Trump* itself, were brought in CIT, and the court has accepted jurisdiction over both pre-liquidation and post-liquidation IEEPA refund disputes.
A CIT case can recover refunds for entries that are otherwise time-barred under the protest statute. The court has broad equitable authority to order refunds, and post-*Learning Resources* there is settled merits law that IEEPA tariffs were unlawful — meaning the legal question is liability allocation and refund mechanics rather than re-litigating whether the tariffs were valid.
When this option fits. Your IEEPA-affected entries are large enough in dollar value that the cost of litigation pays back, typically when refundable duty exceeds $250,000–$500,000 across all your entries. Below that threshold, the cost-benefit shifts toward waiting for CAPE Phase 2.
Cost and timeline. Filing fees in CIT are modest — currently $415 for a complaint — but legal fees for a competent customs trade litigation team typically run $50,000 to $200,000+ through summary judgment, depending on case complexity. Class action or multi-importer joint actions can spread the cost across many plaintiffs. Realistic case duration is 12–24 months, though CAPE Phase 2 may overtake or settle pending litigation.
Critical action. Engage trade counsel before filing. A botched complaint can foreclose claims that a more careful filing would have preserved. Several major customs law firms are running coordinated IEEPA refund actions and accepting new plaintiffs.
Option 3: Wait for CAPE Phase 2
CBP has not announced a hard date for Phase 2, but agency statements indicate it will cover liquidated entries beyond the 90-day window, including drawback-related entries, Foreign Trade Zone (FTZ) entries, and entries with pending protests. The agency has hinted at a launch in summer or fall 2026, with the largest and most complex backlog working through over 6 to 12 months from launch.
For importers without pressing cash-flow needs and refund amounts below the CIT cost threshold, Phase 2 is likely the cheapest and cleanest path. The same CAPE Declaration filing mechanism is expected to apply, with the same 60–90 day refund timeline once a declaration is accepted.
When this option fits. You have liquidated entries beyond 180 days (so protest is no longer available) and refund value is too small to justify CIT litigation. Phase 2 is your default option.
Cost and timeline. CAPE filings are free aside from broker time. Phase 2 launch is uncertain — most likely Q3 2026 — and refunds typically arrive 60–90 days after a declaration is accepted. Total time from today to refund: probably 6–10 months.
Critical action. Do not destroy any documentation. CAPE Phase 2 is expected to require the same supporting records as Phase 1 — entry summaries, commercial invoices, proof of duty payment. Inventory which of your entries fell under IEEPA tariffs in 2025 and confirm with your customs broker that records are preserved through at least 2028.
A Decision Framework
| Entry status | Best refund path | Realistic timeline | |---|---|---| | Unliquidated, or liquidated within 90 days | CAPE Phase 1 | 60–90 days from filing | | Liquidated 91–180 days ago | Protest under § 1514 | Pending Phase 2; protest preserves rights | | Liquidated > 180 days, refund > $500K | CIT case | 12–24 months | | Liquidated > 180 days, refund < $500K | Wait for CAPE Phase 2 | 6–10 months estimated | | Drawback or FTZ entry | CAPE Phase 2 (Phase 1 excludes these) | 6–12 months estimated | | Already in protest-pending status | Hold the protest, wait for Phase 2 | Tied to Phase 2 launch |
What About the Section 122 Surcharge?
A common point of confusion: the 10% Section 122 universal surcharge that took effect February 24, 2026 is a separate tariff under the Trade Act of 1974 and is not refundable through CAPE or any IEEPA refund pathway. Entries filed after February 24, 2026 owe the 10% Section 122 duty, and that liability is unchanged by the IEEPA refund process.
If your refund analysis is mixing IEEPA duties (refundable) and Section 122 duties (not refundable), separate them on a per-entry basis. The Duty & Tariff Calculator can help model what your duty stack should look like under current rules so you can pull out the IEEPA component cleanly.
For a deep dive on how Section 122 fits into the broader 2026 tariff stack, see our guide on Tariff Stacking in 2026. For the latest on the CIT challenge to Section 122 itself, see Section 122 Court Challenge in CIT.
Documentation You Should Pull Together This Week
Whichever path you choose, the same documentation drives the refund:
1. Entry summary (CBP Form 7501) for every IEEPA-affected entry, with the IEEPA Chapter 99 codes (typically the 9903.01.xx series) clearly visible on the duty calculation. 2. Commercial invoices showing the duty paid and the goods classified. 3. Proof of payment to CBP — ACH debit confirmations, broker statements, or duty deposit ledgers. 4. Liquidation notices with the liquidation date (this drives the 90-day and 180-day clocks). 5. A summary spreadsheet of all IEEPA-affected entries by date, amount, and current status (unliquidated / liquidated within 90 days / liquidated 91–180 days / liquidated > 180 days / protest filed).
The summary spreadsheet is the most important deliverable. Without a clear inventory of entries by status, you cannot make an informed decision among the three options above, and your customs broker cannot file CAPE Phase 1 on the entries that do qualify.
The Bottom Line
CAPE Phase 1 is a real refund mechanism for the cleanest subset of IEEPA-affected entries — but it covers a narrow slice of the $166 billion that CBP collected unlawfully. Most importers with meaningful 2025 IEEPA exposure will see only a portion of their refund through Phase 1, with the rest waiting on Phase 2, on a § 1514 protest, or on a CIT case.
The right move this week is to inventory your entries by liquidation status, file Phase 1 on the entries that qualify, file protests on entries within the 180-day window, and decide whether the remaining exposure justifies CIT litigation. Waiting passively for Phase 2 to cover everything is a reasonable strategy for small-dollar exposure, but for any importer with seven-figure IEEPA refund value, the protest and litigation paths preserve rights that the Phase 2 launch may or may not honor.
If you need help building the entry inventory, modeling the cost-benefit of each path, or coordinating with a customs trade attorney, our team at Cate Freight can run the analysis. Use the homepage quote form to start the conversation.
Frequently Asked Questions
Common questions about your ieepa entry is not cape phase 1 eligible — now what? refund options for liquidated entries (april 2026)
What is the deadline to file a protest on an IEEPA-affected entry?
Protests under 19 U.S.C. § 1514 must be filed within 180 days from the date of liquidation, not the date of entry. Liquidation typically occurs 314 days after entry, so the practical deadline for many 2025 entries falls in mid- to late-2026. Calculate the 180-day clock from each entry's liquidation date stamped on its CBP Form 7501 — and do not wait.
How much does it cost to file a CIT case for an IEEPA refund?
Court filing fees are modest at $415, but legal fees through summary judgment typically run $50,000 to $200,000+ depending on case complexity. Class action or coordinated multi-importer filings can spread the cost across many plaintiffs. Most customs trade attorneys advise CIT litigation only when total refundable duty exceeds $250,000–$500,000, below which CAPE Phase 2 is more cost-effective.
Will CAPE Phase 2 cover entries that are time-barred for protest?
CBP has indicated Phase 2 will cover liquidated entries beyond the 90-day voluntary reliquidation window, but the agency has not committed to recovering refunds on entries that would be time-barred under the standard 180-day protest statute. Filing a protest within 180 days of liquidation is the conservative approach to preserve refund rights regardless of how Phase 2 ultimately scopes.
Can I file CAPE Phase 1 and a CIT case on the same entry?
No — you cannot collect twice on the same refund. Filing a CAPE Declaration is an election to use CBP's administrative process. If CAPE accepts and refunds your entry, you cannot also pursue a CIT case for the same entry. The choice between paths matters most for older entries that may qualify for both Phase 2 and a CIT case.
Are Section 122 tariffs refundable through CAPE?
No. Section 122 is a separate tariff under the Trade Act of 1974 and is not part of the IEEPA refund process. The 10% Section 122 surcharge that took effect February 24, 2026 remains owed on entries filed after that date and is not eligible for CAPE refunds. Only IEEPA-based duties (typically Chapter 99 9903.01.xx codes for IEEPA tariffs) are refundable.
Are FTZ and drawback entries eligible for CAPE Phase 1?
No. CBP has explicitly excluded Foreign Trade Zone entries, drawback entries, and reconciliation-flagged entries from Phase 1. These will be addressed in Phase 2 or later phases. If your IEEPA exposure is concentrated in FTZ or drawback entries, your only options today are filing a protective protest if within the 180-day window or waiting for Phase 2.
What if my customs broker already filed a protest before CAPE existed?
Protest-pending entries cannot be processed through Phase 1. CBP will fold these into Phase 2 or resolve them through the protest itself. You do not need to withdraw the protest, and you cannot recover twice on the same entry. Coordinate with your broker to confirm which entries already have protest filings on file before submitting any CAPE Declarations.
How long until CAPE Phase 2 launches?
CBP has not announced a firm date. Agency statements suggest a Phase 2 launch in summer or fall 2026, with the full backlog of liquidated, protest-pending, drawback, and FTZ entries working through over 6 to 12 months from launch. Importers should plan for refund timelines of 6–10 months from today for entries that fall into Phase 2 scope.
Should I hire a trade attorney or rely on my customs broker?
For Phase 1 filings on simple unliquidated or recently-liquidated entries, your customs broker is sufficient. For Section 1514 protests, a broker can typically file the protest, but a trade attorney's review is valuable if the dollar value exceeds $100,000. For CIT cases, trade attorney engagement is essential — CIT practice is specialized and a self-filed or broker-filed complaint risks foreclosing claims that careful pleading would preserve.
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