CBP Advances IEEPA Refund Process and New Section 301 Investigations

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Several notable developments in U.S. trade policy occurred this week that may impact importers, including progress by U.S. Customs and Border Protection (CBP) toward implementing refunds of duties collected under the now-invalidated IEEPA tariffs and the launch of two new Section 301 investigations by the Office of the U.S. Trade Representative (USTR). Together, these developments reflect the administration’s continued emphasis on trade enforcement, supply chain accountability, and addressing structural imbalances in global manufacturing. 

CBP Provides Update on IEEPA Tariff Refund Implementation 

On March 12, CBP provided the U.S. Court of International Trade with a status update regarding the system it is developing to administer refunds for duties collected under the IEEPA tariffs that were recently struck down by the U.S. Supreme Court. 

CBP indicated that the refund process will operate through a new Automated Commercial Environment (ACE) functionality known as the Consolidated Administration and Processing of Entries (CAPE) system. Importers and customs brokers will be able to submit refund requests through a dedicated CAPE claim portal that will be accessible within the ACE Portal. 

According to CBP, the CAPE system will include four primary components: 

  • A claim submission portal allowing filers to submit refund declarations 
  • A mass processing tool designed to remove IEEPA tariff provisions and recalculate duties on affected entries 
  • A review and liquidation/reliquidation module to process eligible entries 
  • A refund processing component that will issue payments through ACE Collections 

CBP also shared development progress for the system as of March 11: 

  • Claim portal: approximately 70% complete 
  • Mass-processing functionality: approximately 40% complete 
  • Review and liquidation/reliquidation module: approximately 80% complete 
  • Refund processing module: approximately 60% complete 

Once a CAPE declaration is accepted, ACE is expected to automatically remove the IEEPA tariff provisions from the entry summary, recalculate the applicable duties, schedule the entry for liquidation or reliquidation as appropriate, and issue refunds through the ACE refund mechanism. 

Uncertainty Remains Regarding Already Liquidated Entries 

A key outstanding issue is how CBP will treat entries that have already been liquidated. 

CBP’s filing did not provide definitive guidance on this question. However, the inclusion of reliquidation functionality within the CAPE framework suggests that at least some previously liquidated entries may be eligible for administrative relief. 

At this stage, CBP has not clarified whether entries that liquidated outside the standard 180-day protest window will qualify for refunds. Additional direction from CBP or further guidance from the Court of International Trade may be needed before the scope of eligible entries becomes clear. 

CBP also indicated that certain entries may not be included in the initial CAPE rollout, including: 

  • Entries subject to antidumping or countervailing duty suspensions 
  • Entries with ACE liquidation statuses such as “Suspended,” “Extended,” or “Under Review” 
  • Certain entry types, including warehouse withdrawals and entries associated with drawback claims 

USTR Announces Two New Section 301 Investigations 

Separately, on March 11 the Office of the U.S. Trade Representative announced the initiation of two new Section 301 investigations addressing broader structural issues affecting global trade. 

The first investigation will examine whether inadequate enforcement of forced labor prohibitions by certain foreign governments creates unfair competitive conditions in international markets. This inquiry builds upon existing U.S. enforcement efforts under authorities such as the Uyghur Forced Labor Prevention Act. 

The second investigation will focus on industrial overcapacity in global manufacturing sectors. USTR will assess whether government policies in certain economies contribute to persistent excess production capacity that distorts global markets and negatively impacts U.S. industry. 

The investigation will evaluate policies and practices in the following sixteen economies: 

China, the European Union, India, Japan, South Korea, Mexico, Taiwan, Vietnam, Thailand, Malaysia, Cambodia, Singapore, Indonesia, Bangladesh, Switzerland, and Norway. 

If USTR concludes that the policies under review are unreasonable or discriminatory and place a burden on U.S. commerce, the investigations could ultimately lead to additional tariffs or other trade remedies under Section 301. 

Key Takeaway for Importers 

While CBP has not yet released formal guidance regarding the treatment of liquidated entries, the structure of the CAPE system suggests that the agency is preparing to reopen at least some entries administratively through a reliquidation process. This issue is particularly important because a large portion of entries subject to the IEEPA tariffs may already have liquidated. 

Importers that paid duties under the IEEPA tariffs may wish to begin identifying potentially affected entries and gathering supporting documentation now so they are prepared to pursue refunds once the CAPE claim portal becomes available.