Executive Summary U.S. Customs and Border Protection has confirmed that Phase 3 of its Consolidated Administration and Processing of Entries (CAPE) system—the portal for IEEPA tariff refunds—will deploy on October 6, 2026. Phase 3 unlocks refunds for finally liquidated entries (those liquidated more than 80 days ago), a category that represents approximately $11.4 billion, or 6.9 percent, of total IEEPA tariffs collected. But the eligibility gate is narrow and consequential: only importers that have filed suit at the Court of International Trade (CIT) and obtained a reliquidation order can participate. Importers that have not sued—including those whose entries fall outside Phase 1 and Phase 2—may be permanently barred from recovery if the government prevails on appeal. The window to act is closing.

CAPE Phase 3 Launches October 6: The $11.4 Billion IEEPA Refund Window – and Why You Must Sue to Get It

(CAPE第三阶段10月6日上线：114亿美元IEEPA退税窗口——为何必须提起诉讼才能拿到钱)

1 · The CAPE System: A Brief Primer

What Is CAPE?

CAPE—the Consolidated Administration and Processing of Entries—is CBP’s automated system in the ACE portal for processing refunds of tariffs imposed under the International Emergency Economic Powers Act (IEEPA) . The system was developed after courts struck down the IEEPA tariffs, requiring the government to return billions of dollars in duties collected.

How CAPE Has Rolled Out

CAPE has deployed in phases:

Phase 1 and Phase 2 have already processed substantial refunds. As of September 11, 2026, CBP reported that 286,044 CAPE declarations had been submitted, with 201,293 passing validation, and approximately $134.7 billion in “potential and certified refunds” accepted for processing.

2 · Phase 3: The $11.4 Billion Window Opens

What Phase 3 Covers

Phase 3 addresses the most difficult category of entries: finally liquidated entries. Under customs law, once an entry has been liquidated for more than 80 days (and the 180-day protest period has run), it is considered “finally liquidated”—meaning CBP generally cannot reopen it without a court order.

This creates a legal Catch-22: the entries most in need of refund (because they are the oldest) are also the entries that CBP lacks authority to reliquidate absent judicial intervention.

A Deadline That Has Already Slipped Once

Phase 3 has not arrived on the timeline CBP originally promised. At a June 9, 2026 CIT hearing, Susan Thomas, CBP’s Executive Assistant Commissioner for Trade, testified that Phase 3 would be ready by the end of July 2026. That deadline passed without a launch, and by mid-August CBP told the court it could offer no firm timetable at all. The October 6 date now confirmed in the September 15 declaration is therefore CBP’s second committed deadline for this phase—worth keeping in mind for importers weighing whether to wait for Phase 3 or pursue litigation in parallel.

The $11.4 Billion Figure

Approximately $11.4 billion in IEEPA duties—representing 6.9 percent of all IEEPA tariffs collected—sits in finally liquidated entries that CAPE could not previously process. Phase 3 is the mechanism designed to unlock those funds.

The Hard Eligibility Gate

But Phase 3 is not open to all importers. According to CBP’s September 15 declaration to the CIT, only importers of record that are “plaintiffs” with a case pending before the CIT seeking IEEPA tariff refunds may participate. The declaration, made by Brandon Lord, Executive Director of CBP’s Trade Programs Directorate, specifies that plaintiffs must have:

1. Filed suit at the CIT, and
2. Received a reliquidation order from the court, and
3. Submitted a valid importer of record (IOR) number to CBP by July 30, 2026.

Importers that have not sued cannot participate in Phase 3.

3 · Why Litigation Is Now the Only Path

The Government’s Appeal

The litigation requirement is not merely CBP’s preference—it is the product of an ongoing legal battle. In June 2026, the Trump administration appealed the CIT’s universal refund order to the Federal Circuit, arguing that the CIT lacked authority to order refunds for non-litigating importers.

The government’s position is that CBP has no authority to reliquidate or refund money on finally liquidated entries without a court order, and that the CIT cannot issue “universal relief” to importers that never filed suit.

The Risk for Non-Litigants

If the Federal Circuit sides with the government, importers that have not filed their own lawsuits could be permanently barred from recovering refunds on finally liquidated entries.

This is the critical takeaway: waiting is no longer a viable strategy. The class certification process—which could theoretically extend relief to non-litigants—is uncertain. The government is expected to oppose certification and appeal any favorable ruling. Final resolution may not occur before the end of 2026.

The “Fast Track” for Litigants

For importers that do sue, the CIT has been entering individual reliquidation orders at a steady clip. According to Sandler, Travis & Rosenberg, importers can expect to receive a reliquidation order within a week or two of filing suit, if not sooner.

4 · What Importers Must Do Now

1. Determine Whether You Have Finally Liquidated Entries with IEEPA Duties

The first step is to assess your exposure:

• Identify entries that paid IEEPA tariffs and have been liquidated for more than 80 days
• Quantify the duty amount at issue
• Confirm that these entries are not already covered by Phase 1 or Phase 2

2. If You Have Not Sued, Sue Now

The litigation requirement means that filing suit at the CIT is the only reliable path to recovery for finally liquidated entries. Importers should:

• Consult trade counsel about filing an individual complaint at the CIT
• Provide your IOR number to CBP if you have not already done so
• Act quickly: the longer you wait, the greater the risk that the Federal Circuit resolves the appeal in a way that forecloses non-litigant recovery

3. Do Not Withdraw IEEPA-Only Protests Prematurely

STR advises that IEEPA-only protests (those raising no other issues) should not be withdrawn until an importer receives an individual reliquidation order and counsel has verified CAPE Phase 3 eligibility with CBP. The most conservative approach is to wait until right before making a Phase 3 submission to withdraw the protest.

4. Enroll in Electronic Refunds in ACE

Importers should ensure they are enrolled in electronic refunds through ACE. Paper refunds may take longer and introduce additional administrative risk.

5. Monitor Liquidation Status and Deadlines

Importers should monitor:

• Liquidation dates for all entries with IEEPA duties
• Protest deadlines (180 days from liquidation)
• CAPE Phase 3 eligibility once CBP provides further instructions

6. Consider the Class Certification Track

For importers that have not yet sued, there is a second potential path: awaiting class certification. Two separate class certification motions are currently pending at the CIT, with different proposed class definitions. The lead case, Freestyle World, Inc. v. United States (Court No. 26-01088), was argued on August 19, 2026, while a separate motion in V.O.S. Selections, Inc. v. United States (Court No. 25-00066), brought by the Liberty Justice Center, was argued on August 6, 2026. If either class is certified, it could cure the “universal order” problem and extend relief to non-litigants who fit the certified class definition—though the two cases define their proposed classes differently, meaning which importers would actually benefit depends on which motion succeeds and how broadly the class is defined.

But this path carries significant risk:

• Class certification is not guaranteed
• The class definition could change, affecting who qualifies
• The government could oppose certification or appeal a certification order
• Final resolution may not occur before the end of 2026

Filing an individual lawsuit remains the safest path.

5 · The Broader Context: Where the Refund Program Stands

While Phase 3 is focused on the remaining finally liquidated entries, it is worth noting the scale of what has already been returned. According to CBP’s September 15, 2026 court filing, approximately $122 billion in duty refunds and interest have already been certified and transmitted to the U.S. Treasury for payment, out of roughly $134.7 billion in total potential and certified refunds accepted for processing. More than 286,000 CAPE declarations have been submitted since the program launched, covering approximately 27.2 million import entries.

Not Every Importer Is Eligible: roughly 330,000 importers are estimated to be eligible for IEEPA refunds in total, with large brands and logistics companies—including Costco, Walmart, Target, FedEx, UPS, and DHL—among the refund petitioners. CBP has indicated that once Phase 3 is fully deployed, about 95 percent of entries that paid IEEPA duties will be eligible for refunds through CAPE in some form. That leaves roughly $25 billion in refunds tied to entries that remain outside Phases 1 through 3 altogether—including entries subject to antidumping and countervailing duties, entries with active drawback claims, and entries tied to unresolved administrative protests. Importers with entries in these categories should not assume Phase 3 resolves their situation; a separate path or further CBP guidance may still be required.

For importers still waiting on finally liquidated entries, Phase 3 represents the largest remaining tranche of the refund process—but only for those who have taken the necessary legal steps.

6 · Conclusion: The Clock Is Ticking

CAPE Phase 3 will deploy on October 6, 2026, unlocking $11.4 billion in IEEPA tariff refunds for finally liquidated entries. But the eligibility gate is narrow: only importers that have filed suit at the CIT and obtained a reliquidation order can participate.

Key Takeaways

The Bottom Line

For importers with finally liquidated IEEPA entries, the path to recovery runs through the courthouse. Phase 3 is not a universal refund program—it is a litigation-gated mechanism. Importers that have not yet filed suit should consult counsel immediately and evaluate their options. The class certification track is uncertain; the individual lawsuit track is proven.

The message is clear: If you have finally liquidated IEEPA entries and have not sued, you may be leaving $11.4 billion on the table—and the window to act is closing.

This analysis reflects CBP’s September 15, 2026 declaration to the Court of International Trade regarding CAPE Phase 3, and related developments as of September 21, 2026. Specific eligibility requirements, deadlines, and litigation outcomes are subject to ongoing court proceedings and CBP guidance. Importers with finally liquidated IEEPA entries should consult with trade counsel to assess their individual circumstances and potential remedies. STR will host a webinar on September 24, 2026, reviewing the latest IEEPA litigation and refund developments.