IEEPA Tariff Refunds

IEEPA Tariffs Ruled Unconstitutional by the U.S. Supreme Court

The U.S. Supreme Court announced on Feb. 20th, 2026, that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose tariffs. This Act has been used extensively over the past year by President Trump to impose tariffs on goods being imported into the United States.  These tariffs encompass, among others, those related to Fentanyl & Border Security on imports from China, Canada, and Mexico, as well as reciprocal tariffs on all countries and punitive tariffs on specific nations.

CBP Collection of IEEPA Tariffs Ends

For goods entered on or after 12:01 EST on February 24, 2026, CBP no longer collects IEEPA tariffs.

CBP, at the Court of International Trade, Announces System Development to Process IEEPA Refunds

On March 12, 2026, CBP provided an outline of its ACE IEEPA refund programming, so far, to Court of International Trade (CIT) Judge Robert Eaton. This new ACE functionality will be called the Consolidated Administration and Processing of Entries (CAPE).

The CAPE Claim Portal will be web-based and serve as the entry point for importers and customs brokers to submit IEEPA refund requests (“CAPE Declaration”) to CBP. Once operational, a new tab will be available in both importer and customs broker ACE Portal accounts.

CBP is designing CAPE with four integrated components:

  • Claim Portal,
  • Mass Processing,
  • Review and Liquidation/Reliquidation, and
  • Refund.

The proposed system will process entries for refund as follows:

  • Importer or their broker files a declaration in ACE listing entries with IEEPA duties
  • ACE runs automated validations and recalculates duties without IEEPA tariffs, including interest
  • CBP verifies the declaration and processes refunds
  • ACE automatically liquidates or reliquidates the entries
  • ACE aggregates refunds with interest by importer and liquidation date
  • CBP certifies refunds
  • Treasury disburses electronically
 

What Should Clients Do To Prepare For Refund Processing?

Importers should take the following steps in order to be best prepared to receive their refunds:

  1. Apply for an ACE Portal Account if you do not already have one.
    1. Apply here: https://ace-accounts.cbp.gov/s/importer-form
    2. Instructions available here: https://www.cbp.gov/document/guidance/automated-ace-portal-account-application-importers

2. Your company’s Trade Account Owner (TAO) in the ACE Portal should review the ACH Refund Authorization tab in the Importer view to ensure the details of the bank account into which you want your refunds deposited is accurate. This is extremely important since, as of February 6, 2026, CBP will only issue electronic (ACH) refunds (subject to certain narrow and uncommon exceptions under 31 CFR part 208).

    1. Instructions available here: https://www.cbp.gov/document/guidance/cbp-modernizes-electronic-refund-enrollment-process

3. Run an ACE Entry Summary Report ES-003 in the ACE Portal for the entry dates since the implementation of IEEPA (March 2025). This report will provide the duty amounts per entry summary /entry line for the IEEPA tariffs as well as other tariffs (201, 232, etc.) and the base Chapter 1-97 HTS duties.  John S. James Co. can assist clients with this upon request.

    1. Instructions available here: https://www.cbp.gov/trade/automated/training-and-reference-guides, under ACE Reports Training.
 

What Are the Next Steps for Refund Processing?

CBP is currently programming the new CAPE system to process refunds. We will keep this page updated as additional information about the system and implementation timeline is available. At this time, prepare for your refunds by compiling the list of entries for which IEEPA duties were collected. Please reach out to your John S. James Co. account representative if you are in need of any assistance.

Frequently Asked Questions

 

  • Why aren’t all duties I paid in 2025-2026 eligible for refunds?

    • The Supreme Court ruled only on the constitutionality of tariffs imposed under the International Emergency Economic Powers Act (IEEPA). Other tariff actions (for example, Sec. 232, Sec. 301) were not challenged in this specific case and remain in place. In addition, most entries subject to 232 actions were not subject to IEEPA, and, in those cases, the original duties will remain in place.

  • Who can file for IEEPA tariff refunds?

    • Importers and their brokers will be able to file for IEEPA refunds under the current CAPE proposal. John S. James Co. can assist in preparing and filing your refund request once the CAPE system is finalized and operational guidance is published.

  • How can I determine the value of potential refunds?

    • Under the CAPE proposal, CBP will recalculate the entries without IEEPA. An ACE Entry Summary ES-003 report will show all tariff lines entered for each entry summary, so you can filter the duty column to those HTS numbers associated with IEEPA to understand the potential refund amount. Please note for goods entered under IEEPA “threshold” number (such as country of origin Japan, United Kingdom, the European Union countries, Switzerland & Liechtenstein, and South Korea) the HTS Chapter 1-97 Most Favored Nation rate still applies, so may require calculation to accurately understand the refund amount. John S. James Co. can assist with this research.

How Can John S. James Co. Help You?

John S. James Co. can assist importers to review their entries for refund potential and keep you advised of any refund submission and documentation requirements. We would also be pleased to support you with the filing of refund submissions. Please contact your account representative for support, or if you are not an existing client, please send your request to info@johnsjames.com.