CBP confirmed that all filing and processing requirements from the first phase of CAPE remain in effect; notably, acceptance remains limited to unliquidated entries and entries within 80 days of liquidation.

Once an entry flagged for reconciliation is accepted on a CAPE declaration, the corresponding reconciliation entry may then be filed.

However, CBP cautioned that if the reconciliation filing deadline is approaching (e.g. where fewer than 30 days remain), priority should be given to filing the reconciliation entry to avoid missing the deadline.

CBP also noted that while entries flagged for reconciliation for which a reconciliation entry is already on file are not yet covered by this functionality, those entries are expected to be addressed in a future phase of CAPE development.

Please contact us with any additional questions.

Specifically, CBP indicated that Phase 2, which will cover reconciliation entries, is expected to launch on June 29, 2026. CBP further stated that Phase 3, which is intended to cover all finally liquidated entries subject to IEEPA tariffs, is expected to launch at the end of July 2026.

At the same time, CBP reiterated its opposition to a universal refund mechanism, arguing that Phase 3 should be limited to importers that have filed suit at the CIT. We therefore expect continued litigation regarding whether refunds will ultimately be available to all affected importers or only to those participating in the litigation.

Given this uncertainty, companies with outstanding IEEPA duty refunds that have not yet instructed us to file a pleading before the CIT should contact us immediately to do so.

For further information, please contact Gail Cumins at gcumins@spcblaw.com, Alli Baron at abaron@spcblaw.com or call us at 212-425-0055.

Accordingly, companies that have not yet joined the litigation, but have potential refunds associated with entries that liquidated more than 90 days ago, should consider filing their own protective pleading with the CIT as soon as possible.

In this regard, given the Government’s position, it is increasingly likely that a company-specific court order will be required to recover refunds on finally liquidated entries.

Please contact us if you are interested in filing. We will continue to keep you apprised of further developments.

The Court, unusually, has also instructed Rodney S. Scott, Commissioner of Customs, to appear in person on June 9, 2026, to discuss the agency’s plans to comply with the Court’s order to reliquidate all applicable entries without IEEPA duties.

Customs has also been instructed to submit an updated CAPE progress report by June 10, 2026.

Collectively, these developments suggest that the CIT is considering the possibility of ordering the broad refund of all IEEPA duties, including those associated with entries presently excluded from CAPE phase 1.

However, it is also possible the government will respond to these instructions by filing an appeal to the CIT’s original refund order. Any appeal would need to be filed by June 6, 2026.

With so many questions remaining, it is imperative that you continue to take the necessary steps to protect your company’s IEEPA refunds.

Please contact us to discuss the best course of action for your company at this time.