IEEPA tariff refunds have become a major financial and compliance priority following the invalidation of duties imposed under the emergency-powers statute. Importers and customs brokers must now distinguish discontinued IEEPA tariffs from unaffected duties, identify eligible entries, and manage a refund process shaped by liquidation status, court proceedings, and evolving CBP procedures.
What the IEEPA Decision Changed—and What It Did Not
The February 20, 2026 Supreme Court decision established that the International Emergency Economic Powers Act did not authorize the tariffs imposed under the challenged executive actions. CBP subsequently stopped collecting duties imposed under that authority for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:00 a.m. Eastern time on February 24, 2026.
Only IEEPA-Based Duties Were Invalidated
The decision did not invalidate the entire U.S. tariff system. It affected additional duties imposed under IEEPA, including tariffs associated with border-related drug measures, synthetic opioid supply chains, reciprocal tariffs, Venezuelan oil, Brazil, and Russia-related actions.
Section 232 tariffs and Section 301 tariffs remain separate. Importers must generally continue paying applicable Section 232 duties on covered products and Section 301 duties on designated goods of Chinese origin unless a valid exclusion or other specific exception applies. Ordinary Harmonized Tariff Schedule duties, merchandise processing fees, harbor maintenance fees, antidumping duties, and countervailing duties also were not eliminated by the IEEPA decision.
The frequently used distinction between ad valorem and other tariffs can create confusion. Ad valorem describes how a duty is calculated—as a percentage of entered value—not the legal authority under which it was imposed. An ordinary ad valorem duty, a Section 301 duty, or a Section 232 duty may remain payable even when an IEEPA additional duty on the same entry is invalid.
Entry Date and Duty Authority Must Be Reviewed Separately
The February 24 collection cutoff applies to IEEPA duties on newly entered merchandise. Duties paid on earlier entries raise a separate refund question. Eligibility may depend on the applicable court orders, liquidation status, importer participation in litigation, and CBP’s phased processing rules. Importers should therefore avoid treating the collection cutoff as an automatic refund instruction for every historical entry.
Why the Section 122 Surcharge Was Not a 15% Replacement
The end of IEEPA tariff collection did not automatically convert invalidated duties into a universal 15% tariff. Section 122 provides a distinct trade authority that may generally be used to address serious balance-of-payments concerns, subject to its own limits and implementation requirements.
The Temporary Surcharge Was Implemented at 10%
A temporary import surcharge was implemented at 10%, rather than 15%. Although Section 122 may permit a surcharge up to a specified ceiling, the maximum available rate is not necessarily the rate selected for implementation. Importers should distinguish statutory authority from the rate, product scope, effective dates, and exceptions established by the operative measure.
The temporary Section 122 surcharge expired on July 24, 2026. Its expiration means it should not be treated as a continuing substitute for the invalidated IEEPA tariffs. It also does not retroactively convert earlier IEEPA collections into valid Section 122 duties. Each duty must generally rest on the legal authority and effective terms applicable when the merchandise entered.
The Complete Duty Stack Still Matters
The removal or expiration of one additional tariff does not make an entry duty-free. A product may remain subject to its ordinary tariff rate, Section 301 duties, Section 232 duties, antidumping or countervailing duties, and applicable customs fees. Country of origin, classification, valuation, quota status, exclusion eligibility, and special-program claims continue to affect the final duty calculation.
Brokers and importers should update landed-cost models accordingly. Systems that merely remove all supplemental tariffs from affected countries could materially understate duty exposure. The appropriate approach is to identify each duty line by legal authority and effective period, then remove only the measures that no longer apply.
How the CAPE Refund Process Is Progressing
CBP is administering IEEPA tariff refunds through the CAPE process in phases based largely on entry status. Earlier phases addressed unliquidated entries and entries approaching liquidation, where administrative correction or liquidation processing could generally occur without reopening entries that had been final for an extended period.
Phase 3 Addresses Certain Finally Liquidated Entries
Phase 3 is scheduled to launch October 6, 2026. It covers qualifying entries that became finally liquidated more than 80 days earlier, but the phase is limited to Court of International Trade plaintiffs that submitted their importer-of-record numbers by July 30, 2026.
That restriction is important. An importer that paid IEEPA tariffs should not assume it falls within Phase 3 merely because its entries are finally liquidated. Litigation status, submission deadlines, importer-of-record data, and the scope of the relevant court order may all affect processing. Importers outside the designated plaintiff group should evaluate available administrative and judicial options with customs counsel rather than relying on another company’s refund outcome.
Refund Volume Does Not Guarantee Individual Eligibility
As of September 11, 2026, approximately $134.7 billion in potential or certified IEEPA refunds had been accepted through CAPE. About $122 billion, plus applicable interest, had already been transmitted to the Treasury for disbursement. Total IEEPA collections were approximately $166 billion.
These figures demonstrate the scale of the process, but the difference between total collections and processed refunds should not be interpreted as a simple pool available to every importer. Some entries may remain under review, fall outside a particular court order, contain data discrepancies, or present liquidation issues. Government appeals involving reliquidation orders also mean that refund procedures can continue to evolve.
Importers should reconcile CAPE activity to entry records, payment data, liquidation notices, and actual Treasury receipts. A certified amount, a transmitted amount, and cash received in the importer’s account represent different operational milestones.
A Practical Compliance Plan for Importers and Brokers
A disciplined IEEPA tariff refund review begins with entry-level data rather than aggregate duty totals. Customs brokers and trade compliance teams need to isolate the affected duty amounts while preserving the remaining duty stack and the audit trail supporting each determination.
Build a Defensible Entry Population
The review should generally capture importer-of-record number, entry number, entry date, port, tariff classification, country of origin, entered value, IEEPA duty amount, other additional duties, liquidation date, protest status, and any litigation-related designation. Teams should also separate unliquidated, recently liquidated, and finally liquidated entries because each category may follow a different procedural path.
Importers should compare broker data, ACE records, customs payment records, and general-ledger postings. Differences can arise when entries were corrected, protested, reconciled, liquidated at a changed amount, or assigned to an acquisition, division, or related importer. A clean entry universe reduces the risk of missed refunds and unsupported claims.
Coordinate Refunds With Accounting and Other Recovery Programs
IEEPA refunds can affect inventory costing, cost of goods sold, duty accruals, transfer-pricing analyses, customer agreements, and financial reporting. Companies should establish who owns the economic benefit under vendor, customer, and broker agreements, particularly where tariff costs were passed through as separate charges.
Duty drawback and IEEPA refunds are also distinct recovery mechanisms. Drawback generally concerns eligible duties paid on imported merchandise that is later exported or destroyed under an authorized drawback provision. An importer cannot generally retain duplicate recovery of the same duty amount through reliquidation, CAPE, drawback, or another refund process. Existing drawback claims may therefore require review if they included IEEPA duties that were later refunded.
Customs brokers should maintain clear client instructions and avoid making eligibility assumptions based solely on tariff codes. Importers remain responsible for confirming their legal position, while brokers need reliable data and controls to execute corrections or claims under their own filer procedures.
- CBP confirmed on September 15, 2026, that Phase 3 of its CAPE refund system for invalidated IEEPA tariffs launches October 6, 2026.* This phase covers finally liquidated entries (those liquidated more than 80 days prior) but is limited to CIT plaintiffs who submitted their importer-of-record numbers by July 30, 2026; earlier phases handled unliquidated and near-liquidation entries.
- As of September 11, 2026, CBP had accepted ~$134.7 billion in potential/certified IEEPA refunds via CAPE, with ~$122 billion (plus interest) already sent to Treasury for disbursement.* Total IEEPA collections were around $166 billion; refunds continue amid government appeals of CIT reliquidation orders.
- On September 22, 2026, six U.S. senators pressed USTR Jamieson Greer for details on potential consumer relief from IEEPA refunds,* noting that importers (not end consumers) are receiving the bulk of returns after the February 20, 2026, Supreme Court ruling that IEEPA does not authorize tariffs.
- Companies including Walmart (~$2.9B), Apple (~$2.2B), Target, Nike, and others reported IEEPA tariff refunds in recent quarterly results* (discussed on X as of October 4, 2026), contributing to net customs duty fluctuations after the SCOTUS decision and subsequent temporary Section 122 replacement (which expired July 24, 2026).
- Section 232 and 301 duties remain unaffected and in force. Refund eligibility and processing continue to evolve through CIT cases and CBP guidance.
Frequently Asked Questions
Were All U.S. Tariffs Invalidated?
No. The decision invalidated tariffs imposed under IEEPA. Ordinary customs duties, Section 232 tariffs, Section 301 tariffs, antidumping duties, countervailing duties, and applicable customs fees generally remain in force. Each entry must be reviewed by duty authority rather than treated as entirely refundable.
Did a 15% Section 122 Tariff Replace the IEEPA Tariffs?
No. A temporary Section 122 surcharge was implemented at 10%, not 15%, and it expired July 24, 2026. It was a separate measure with its own effective period, not an automatic or retroactive conversion of invalidated IEEPA duties.
Will Every Importer That Paid IEEPA Duties Receive a Refund?
Not necessarily. Refund treatment depends on factors that may include entry date, liquidation status, court coverage, importer-of-record identification, administrative deadlines, and continuing proceedings. Phase 3 of CAPE is specifically limited to qualifying Court of International Trade plaintiffs that submitted importer numbers by July 30, 2026.
Are Section 232 and Section 301 Duties Refundable Under CAPE?
No. CAPE processing for invalidated IEEPA tariffs does not eliminate separately imposed Section 232 or Section 301 duties. Importers must continue to evaluate those duties under their respective product coverage, country-of-origin rules, exclusions, and effective dates.
How Should Importers Treat Refund Interest?
Applicable interest should generally be reconciled separately from the refunded principal because the amounts may receive different accounting or tax treatment. Importers should match Treasury disbursements to entry-level refund calculations and consult their accounting and tax advisers regarding financial-statement treatment.
How Stable Software Can Help
Keep Drawback Recovery Separate and Controlled
IEEPA refunds create a new reconciliation obligation for companies that also maintain duty drawback programs. Brokers need to identify duties already returned through CAPE or reliquidation so the same amounts are not included in a drawback recovery.
DrawbackAI is Stable Software’s flat-license duty drawback software for U.S. customs brokers. Brokers can white-label the software for importer clients and file drawback claims under their own filer code. Stable Software charges a flat software license and never takes a percentage of the refund, allowing brokers to retain control of client relationships and recovery economics while keeping drawback operations distinct from IEEPA refund processing.
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