Careers

Diversity, Equity & Inclusion

Experience

Innovation

Interactive Maps

Locations

About

Pages

Meet our team of innovators
Ask us how we do it

Professionals

Insights

Services

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.

Home | Thompson Hine LLP

Atlanta

Chicago

Cincinnati

Cleveland

Columbus

Dayton

Los Angeles

Minneapolis

New York

Silicon Valley

Washington, D.C.

On June 23, 2026, U.S. Customs and Border Protection (“CBP”) published <a href="https://content.govdelivery.com/accounts/USDHSCBP/bulletins/41d65dd?reqfrom=share">Cargo Systems Messaging Service (“CSMS”) #69035485</a>, confirming that Phase 2 of the process for refunding duties paid by importers of record under the International Emergency Economic Powers Act (“IEEPA”) will be deployed in the Automated Commercial Environment (“ACE”) Portal on June 29, 2026. CBP unveiled the refund process, known as the Consolidated Administration and Processing of Entries (“CAPE”), in a <a href="https://filehost.thompsonhine.com/uploads/CBP_-_March_12_Updated_Lord_Declaration_6191.pdf">March 12, 2026 declaration</a> to the U.S. Court of International Trade (“CIT”), confirming that the IEEPA tariff refund process would be implemented in multiple phases (see <a href="https://www.thompsonhinesmartrade.com/2026/03/cbp-reports-progress-on-ieepa-tariff-refund-process/">Update of March 13, 2026</a>).

contentpilot/introduction

Consistent with a <a href="https://storage.courtlistener.com/recap/gov.uscourts.cit.17080/gov.uscourts.cit.17080.98.0_2.pdf">June 4, 2026, filing</a> submitted to the CIT by CBP, Phase 2 of the CAPE will cover entries flagged for reconciliation (entry types 01, 02, and 06) for which a corresponding reconciliation entry (entry type 09) has not yet been filed (see <a href="https://www.thompsonhinesmartrade.com/2026/06/cbp-announces-phases-2-and-3-of-the-ieepa-tariff-refund-process/">Update of June 15, 2026</a>). By contrast, entries flagged for reconciliation for which a reconciliation entry is already on file “will be included in a future phase of CAPE development.”

core/paragraph

The scope of Phase 2 is further limited to unliquidated entries and entries within 80 days of liquidation, consistent with Phase 1 of the CAPE. Introduced in a <a href="https://storage.courtlistener.com/recap/gov.uscourts.cit.19346/gov.uscourts.cit.19346.51.0.pdf">March 31, 2026 declaration</a> to the CIT, Phase 1 of the CAPE refunds IEEPA tariffs collected on unliquidated entries and entries no more than 80 days past liquidation (see <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>).

As stated in the CSMS message, Phase 2 will also operate concurrently with Phase 1, which has been in effect since April 20, 2026, via the ACE Portal (see <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>). The filing requirements and processing procedures applicable to Phase 2 will be identical to those used in Phase 1.

Meanwhile, at a <a href="https://storage.courtlistener.com/recap/gov.uscourts.cit.17080/gov.uscourts.cit.17080.103.0_2.pdf">show cause hearing</a> at the CIT on June 9, 2026, held amid concerns over the rollout of CAPE phases, CBP confirmed that it is developing Phase 3 of the CAPE, with deployment anticipated by the end of July 2026 (see <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>).

According to CBP, Phase 3 will cover finally liquidated entries; however, it remains unclear whether the agency’s reference to “finally” liquidated entries means only entries that have completed both the 314-day liquidation cycle and the 180-day protest period during which importers of record may challenge CBP’s final duty assessment, or whether it also includes entries that are not finally liquidated but fall outside the scope of Phases 1 and 2 of the CAPE (i.e., entries that have been liquidated for 81 to 180 days).

To date, CBP’s only reference to Phase 3 occurred at that June 9, 2026 show cause hearing, and the agency has not provided any further details about the phase.&nbsp;While that reference alone appears encouraging, as it suggests CBP is working on additional CAPE phases, one week before the hearing—on June 2, 2026—CBP <a href="https://storage.courtlistener.com/recap/gov.uscourts.cit.17080/gov.uscourts.cit.17080.91.0_2.pdf">filed</a> an <a href="https://storage.courtlistener.com/recap/gov.uscourts.cafc.24454/gov.uscourts.cafc.24454.2.0.pdf">appeal</a> of the IEEPA tariff refund process, arguing the agency lacks authority to refund the IEEPA tariffs collected on finally liquidated entries unless the importer of record seeking such a refund has a lawsuit pending before the CIT (see <a href="https://www.thompsonhinesmartrade.com/2026/06/trump-administration-appeals-cits-ieepa-tariff-refund-order/">Update of June 3, 2026</a>). As a result, the appeal directly implicates Phase 3 of the CAPE, raising additional uncertainty regarding its scope and timing, including which importers of record will even be eligible to participate.

This article may be reproduced, in whole or in part, with the prior permission of Thompson Hine LLP and acknowledgment of its source and copyright. This publication is intended to inform clients about legal matters of current interest. It is not intended as legal advice. Readers should not act upon the information contained in it without professional counsel.

This document may be considered attorney advertising in some jurisdictions.

CBP Launches Phase 2 of the IEEPA Tariff Refund Process and Confirms Development of Phase 3

Services