File Now: CIT's Order Confirms Only Importers That Have Sued Will Get Full IEEPA Tariff Refunds

Following the U.S. Supreme Court's February 2026 decision in Learning Resources, Inc. v. United States invalidating the International Emergency Economic Powers Act (IEEPA) tariffs, the U.S. Court of International Trade (CIT) ordered refunds, and U.S. Customs and Border Protection (CBP) began developing the Consolidated Administration and Processing of Entries (CAPE) system to process them. Though more than 3,700 separate lawsuits seeking IEEPA tariff refunds are currently pending before the CIT, CAPE has been implemented in phases.

Phase 1 launched on April 20, 2026, covering refunds of IEEPA duties for unliquidated entries and entries within 80 days of liquidation. Phase 2 launched on June 29, 2026, covering IEEPA duty refunds for entries flagged for reconciliation where the reconciliation entry is not yet on file. (For more information on CAPE Phases 1 and 2 and the Government's appeal of CIT's refund order, see Holland & Knight's previous alert, "IEEPA Tariff Refund Update: Government Appeals CIT Refund Order and the Road Ahead for Importers," June 15, 2026.)

One of the most consequential remaining issues concerns entries that became "finally liquidated" before refunds could be processed. For those entries, the distinction between importers that filed CIT actions and those that did not has become increasingly important.

A Court-Ordered Path for Finally Liquidated Entries

On July 15, 2026, CIT Judge Richard K. Eaton issued an order for an IEEPA duty refund plaintiff, directing CBP to refund IEEPA duties on "any and all" of the plaintiff's entries that have been liquidated for more than 80 days.

The court has indicated that the same relief will be entered in each of the approximately 3,700 pending IEEPA cases and has begun issuing those orders.

The order defines "finally liquidated entries" as entries liquidated for more than 90 days, reflecting the 90-day reliquidation period under 19 U.S.C. § 1501. As a practical matter, however, the order directs relief for entries liquidated more than 80 days earlier, consistent with CAPE's current 80-day cutoff and its 10-day processing buffer.

The significance of the order is practical as much as legal: Importers that filed individual CIT actions now have affirmative court orders directing CBP to process refunds on entries that otherwise may be beyond CBP's ordinary reliquidation authority. The CIT's order provides individual plaintiffs with a defined, court-supervised path for obtaining refunds on those entries. Non-filers, by contrast, remain dependent on the outcome of separate appellate and class proceedings.

How Plaintiffs Actually Get Paid

The order channels refunds on finally liquidated entries through CAPE rather than establishing a separate judicial refund process. When the applicable CAPE functionality becomes operational, CBP will provide instructions directly to plaintiffs' counsel of record identifying the information required, including the plaintiff's importer of record (IOR) number or numbers and explain how that information should be submitted. Plaintiffs do not need to take additional action to trigger that outreach.

Once the required information has been provided and CBP's instructions have been satisfied, plaintiffs may submit CAPE declarations covering finally liquidated entries. Refunds will be issued after CBP accepts the declarations, and additional declarations may be submitted as other entries become finally liquidated.

Importantly, the CIT entered this relief through an order rather than a final judgment, preserving the court's ability to address problems that may arise during implementation. A plaintiff that encounters difficulties obtaining the relief contemplated by the order may seek to lift the stay and request the court's assistance. Conversely, plaintiffs that receive all refunds owed through CAPE are expected to voluntarily dismiss their cases.

Related Docket Developments to Track

Judge Eaton has lifted the stay on one of the cases involving IEEPA duty refunds to serve as the principal vehicle for tracking CBP's CAPE progress reports. The government's next CAPE status report is due by 5 p.m. ET on August 4, 2026, followed by a closed settlement conference on August 5.

Together with the class certification hearing for IEEPA duty refund plaintiffs set for August 6, 2026, these proceedings may provide important additional guidance regarding CAPE's continued rollout and the potential treatment of importers that have not filed individual actions.

What Importers Should Consider Now

• File a Protective Action at the CIT if You Have Not Already Done So: Importers that have not filed should evaluate promptly whether a protective action is appropriate. The recent orders provide individual CIT plaintiffs with a court-ordered mechanism for recovering IEEPA duties on finally liquidated entries. Non-filers currently do not have an equivalent confirmed path.
• Quantify the Duties Associated with Finally Liquidated Entries: To prepare for refunds, importers should identify IEEPA entries that have already become finally liquidated, as well as entries that will cross applicable liquidation thresholds in the coming weeks and months.
• Do Not Assume Class Proceedings Will Eliminate the Need for an Individual Filing: The pending class motions could materially affect the rights of non-filers, but certification, the scope of any class and relief ultimately available remain unresolved. Importers considering whether to rely on those proceedings should weigh that uncertainty against the relief now being ordered for individual CIT plaintiffs.
• Watch Approaching 180-Day Protest Deadlines: Because the order leaves open whether entries more than 180 days past liquidation without a timely protest are eligible for any refund, importers should evaluate whether a protective protest should be filed for entries approaching that mark.
• If You Have Already Filed, Prepare for the CAPE Process: Importers with pending CIT cases should ensure that counsel is prepared to respond to CBP's instructions and that IOR numbers and relevant entry-level data are organized so that CAPE declarations can be submitted promptly when available.

Looking Ahead

The recent CIT orders materially change the practical landscape for IEEPA refunds on finally liquidated entries. Importers that filed individual CIT actions now have court orders directing CBP to provide refunds through CAPE. Importers that did not file remain dependent on unresolved appellate and class proceedings that may or may not ultimately provide an alternative route to the same relief.

Importers that have not yet filed therefore should assess their exposure, liquidation status and available options now rather than assume that the same refund mechanism will ultimately be available to non-filers.

For more information, please contact the authors.

Information contained in this alert is for the general education and knowledge of our readers. It is not designed to be, and should not be used as, the sole source of information when analyzing and resolving a legal problem, and it should not be substituted for legal advice, which relies on a specific factual analysis. Moreover, the laws of each jurisdiction are different and are constantly changing. This information is not intended to create, and receipt of it does not constitute, an attorney-client relationship. If you have specific questions regarding a particular fact situation, we urge you to consult the authors of this publication, your Holland & Knight representative or other competent legal counsel.