IEEPA Refund Updates: CBP Targets May 11 for First IEEPA Duty Refunds

On April 28, 2026, Judge Richard K. Eaton of the U.S. Court of International Trade issued an Order in Euro-Notions Florida, Inc. v. United States, et al. (Court No. 25-00595) addressing early implementation progress for CBP’s new Automated Commercial Environment (“ACE”) functionality designed to refund International Emergency Economic Powers Act (“IEEPA”) duties, including interest. The order follows CBP’s rollout of Phase 1 of its Consolidated Administration and Processing of Entries (“CAPE”) tool on April 20, 2026, and reflects issues raised during a closed conference held on April 28 regarding access, usability, and the treatment of certain categories of entries.

CBP’s CAPE Phase 1 Launch

CBP activated CAPE Phase 1 in ACE at 7:11 a.m. ET on April 20, 2026, with the objective of enabling importers and brokers to remove IEEPA duties and trigger refunds through standardized validations and processing. According to the Declaration of Brandon Lord, who is the Executive Director, Trade Programs Directorate of CBP, usage spiked immediately: ACE experienced roughly a 70% increase in daily logins compared to its prior single-day record.

In the court’s summary of the April 28 closed conference, Judge Eaton noted that approximately 21% of all entries subject to IEEPA duties had been accepted through CAPE during the first week of operation, and roughly 3% had liquidated and reached the refund stage (which includes Treasury issuance).

Refund Timing and Stakeholder Concerns

According to the summary of the closed conference, CBP anticipates the first refunds to be issued on or about May 11, 2026. Conference discussion also focused on how interest will be applied and calculated for IEEPA refunds, including questions about which interest rate applies at different refund thresholds and how CBP determines the amount owed. CBP indicated it would provide additional public direction, including updates to its online FAQ materials, in response to stakeholder concerns raised in the conference.

The closed conference also addressed participants concerns about practical barriers to using CAPE Phase 1. These included:

• Difficulty accessing ACE due to delays in resetting usernames/passwords
• Over-enrollment or limited availability for CBP training sessions
• Uncertainty about how to correctly identify the proper importer for purposes of filing a CAPE declaration

Moreover, the conference addressed reports from some importers that IEEPA duties are still being collected in certain post-entry contexts, including reconciliation, such as when entry value is later increased and duties are adjusted accordingly. CBP stated that it will issue further guidance to address these friction points. 

Next Steps Ordered by the Court

In response to the initial rollout data and stakeholder feedback, Judge Eaton directed CBP to file a short progress report by 12:00 p.m. EDT on May 12, 2026. The court also scheduled a closed settlement conference for 2:00 p.m. on the same day.

As this continues to develop, companies with significant IEEPA exposure should closely track CAPE eligibility boundaries, validation outcomes, and CBP’s forthcoming public guidance—particularly on importer identification, reconciliation scenarios, and the interest methodology that will determine the total refund value.

As this is an evolving situation, the Husch Blackwell International Trade and Supply Chain team will continue to monitor and provide updates as they become available. For additional background, see our prior posts on the CAPE rollout and IEEPA refund guidance.

Commerce Adds a New Zero-Rate Tariff Provision for Certain Section 232-Classified Goods 

On April 29, 2026, the U.S. Department of Commerce announced a new Harmonized Tariff Schedule of the United States (“HTSUS”) provision for products that are entered under Section 232 steel, aluminum, or copper subheadings but contain none of those metals. Under the notice, the new HTSUS subheading 9903.82.01 will carry an additional duty rate of zero, and Commerce indicated the change will apply retroactively to April 6, 2026 (the effective date of the most recent Section 232 tariff adjustments).

The same notice also revises certain tariff-note language to correct technical wording regarding steel and aluminum derivatives and copper articles and further explains that U.K.-origin steel produced by Tata Steel UK can qualify for the reduced U.K.-specific Section 232 steel rate through Jan. 1, 2028, even where the steel was melted and poured in the Netherlands.