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Thompson Hine LLP, a full-service business law firm with approximately 400 lawyers in 11 offices, was ranked number 1 in the category “Most innovative North American law firms: New working models” by The Financial Times and was 1 of 7 firms shortlisted for The American Lawyer’s inaugural Legal Services Innovation Award. The firm has been recognized by the National Law Journal as a Legal Technology Trailblazer and featured by Bloomberg for its innovative service delivery models, which drive accuracy and predictability. The firm’s commitment to innovation is embodied in Thompson Hine SmartPaTHTM – a smarter way to work – predictable, efficient and aligned with client goals. For more information, please visit ThompsonHine.com and ThompsonHine.com/SmartPaTH.

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<p>At a <a href="https://storage.courtlistener.com/recap/gov.uscourts.cit.17080/gov.uscourts.cit.17080.103.0_2.pdf" target="_blank" rel="noreferrer noopener">show cause hearing</a> before the U.S. Court of International Trade (&ldquo;CIT&rdquo;) on June 9, 2026, U.S. Customs and Border Protection (&ldquo;CBP&rdquo;) confirmed that it will roll out Phases 2 and 3 of its process for refunding duties paid by importers under the International Emergency Economic Powers Act (&ldquo;IEEPA&rdquo;) later this summer, with Phase 2 scheduled to launch on June 29, 2026, and Phase 3 expected by the end of July.</p>
<h2 class="wp-block-heading">Phase 2: Reconciliation Entries</h2>
<p>At the hearing, Susan Thomas, CBP&rsquo;s Executive Assistant Commissioner for Trade, explained that Phase 2 of the IEEPA tariff refund process, known as the Consolidated Administration and Processing of Entries (&ldquo;CAPE&rdquo;), will cover reconciliation entries.&nbsp;Her testimony, delivered after the CIT issued an <a href="https://storage.courtlistener.com/recap/gov.uscourts.cit.17080/gov.uscourts.cit.17080.100.0_1.pdf" target="_blank" rel="noreferrer noopener">order</a> withdrawing its earlier requirement that CBP Commissioner Rodney Scott appear, was consistent with the agency&rsquo;s <a href="https://storage.courtlistener.com/recap/gov.uscourts.cit.17080/gov.uscourts.cit.17080.98.0_2.pdf" target="_blank" rel="noreferrer noopener">June 4, 2026 response</a> to the CIT&rsquo;s <a href="https://storage.courtlistener.com/recap/gov.uscourts.cit.17080/gov.uscourts.cit.17080.86.0_1.pdf" target="_blank" rel="noreferrer noopener">May 27, 2026 show cause order</a>, which the court issued amid concerns over the CAPE&rsquo;s rollout (<em>see </em><a href="https://www.thompsonhinesmartrade.com/2026/06/doj-signals-intent-to-appeal-cits-ieepa-tariff-refund-injunction-after-cbp-commissioner-ordered-to-appear/">Update of June 1, 2026</a>).&nbsp;</p>
<h2 class="wp-block-heading">Phase 3: Finally Liquidated Entries</h2>
<p>Thomas further revealed that CBP is developing Phase 3 of the CAPE to cover finally liquidated entries, with deployment expected approximately one month after Phase 2.</p>
<p>Thomas, however, did not clarify whether Phase 3 will be limited to finally liquidated entries&mdash;entries that have completed both the 314-day liquidation cycle and the 180-day protest period during which importers may challenge CBP&rsquo;s final duty assessment&mdash;or whether the phase will also include non-finally liquidated entries outside the scope of Phase 1 of the CAPE.</p>
<p>Consistent with the Trump administration&rsquo;s <a href="https://storage.courtlistener.com/recap/gov.uscourts.cafc.24454/gov.uscourts.cafc.24454.2.0.pdf" target="_blank" rel="noreferrer noopener">June 2, 2026 appeal</a> of the IEEPA tariff refund process, Thomas and CBP reiterated their position that the agency cannot issue refunds on finally liquidated entries absent a lawsuit by an importer of record seeking IEEPA tariff refunds before the CIT (<em>see </em><a href="https://www.thompsonhinesmartrade.com/2026/06/trump-administration-appeals-cits-ieepa-tariff-refund-order/">Update of June 3, 2026</a>).&nbsp;As a result, both the scope of Phase 3 and which importers will be eligible to participate remain unclear.</p>
<h2 class="wp-block-heading">Background</h2>
<p>CBP unveiled the CAPE in a <a href="https://filehost.thompsonhine.com/uploads/CBP_-_March_12_Updated_Lord_Declaration_6191.pdf" target="_blank" rel="noreferrer noopener">March 12, 2026 declaration</a> to the CIT, confirming that the IEEPA tariff refund process would be implemented in multiple phases (<em>see </em><a href="https://www.thompsonhinesmartrade.com/2026/03/cbp-reports-progress-on-ieepa-tariff-refund-process/">Update of March 13, 2026</a>). So far, importers seeking IEEPA tariff refunds have been limited to participating in Phase 1 of the CAPE, which CBP introduced in a <a href="https://storage.courtlistener.com/recap/gov.uscourts.cit.19346/gov.uscourts.cit.19346.51.0.pdf" target="_blank" rel="noreferrer noopener">March 31, 2026 declaration</a> to the CIT and covers refunds of IEEPA tariffs collected on unliquidated entries and entries no more than 80 days past liquidation (<em>see </em><a href="https://www.thompsonhinesmartrade.com/2026/04/cit-endorses-phase-1-of-the-ieepa-tariff-refund-process-ahead-of-cbps-april-20-rollout/">Update of April 3, 2026</a> and <a href="https://www.thompsonhinesmartrade.com/2026/04/cbp-confirms-april-20-2026-launch-of-phase-1-of-the-ieepa-tariff-refund-process/">Update of April 10, 2026</a>).</p>

CBP Announces Phases 2 and 3 of the IEEPA Tariff Refund Process

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