CBP Issues Tariff Refund Updates and Scam Warnings

In February, the Supreme Court ruled that the International Emergency Economic Powers Act (IEEPA) tariffs enacted in early 2025 could not remain in effect. That ruling did not automatically trigger refunds. However, the Court of International Trade (CIT) later ordered that eligible importers receive refunds of those duties plus interest, setting off one of the largest customs refund efforts in recent history. 

In response, U.S. Customs and Border Protection (CBP) developed the Customs Automated Processing Environment (CAPE) refund process to manage claims and process payments. CBP has stated that more than $166 billion in IEEPA duties were collected from at least 330,000 importers before the rulings. Refunds are now moving through the CAPE system, but CBP is also warning businesses about scams and fraudulent activity tied to refund processing and payment requests. To help clients, prospects, and others, Wilson Lewis has summarized the key details below.

Background and Key Stats

CBP officially launched the IEEPA tariff refund process on April 20, 2026. The new system is called CAPE, and it’s part of the ACE Secure Data Portal that existed previously. This is the only way for businesses to request the removal of IEEPA duties from eligible entries and receive a refund, if found eligible. 

CBP has been providing operational updates to CIT as the agency works through millions of affected entries. CBP reported the following statistics to CIT on May 11, 2026:

• 126,237 claims submitted. These are the refund claim packages filed by importers through the CAPE system. One claim can include many entries. 
• 86,874 claims passed file validations. These claims passed the initial system check and included the required information.
• 15,123,221 entries accepted for IEEPA duty removal. These are individual customs entries tied to the claims that passed the review stage and were determined eligible to have IEEPA duties removed.
• 8,338,081 entries liquidated and/or reliquidated without IEEPA duties. These are the entries that CBP has already processed and are moving to the refund stage. 
• 1,880 refunds delayed because ACH information has not been provided. These are refund payments that cannot move forward because CBP does not yet have valid ACH payment information for the importer.

CBP also stated that many processed entries are still being consolidated by importer of record and liquidation date before transmission to the Department of the Treasury for payment. Another update is expected in the coming weeks. 

Note: Businesses should also understand that the IEEPA refund process is separate from the ongoing Section 122 tariff litigation. The Trump administration’s Section 122 tariffs are still being collected while litigation continues, as of May 19, 2026. 

Refund Process

CBP created the CAPE system to manage the massive volume of refunds tied to the IEEPA tariffs. According to CBP, the system is designed to process claims on an importer or on a bulk basis rather than handling refunds individually. Refunds are not issued automatically. Businesses seeking refunds must file claims, identify affected entries, and provide supporting documentation through the CAPE process. Businesses planning to receive refunds electronically should also confirm they are enrolled in ACH Refund, which CBP requires for electronic duty payments.

CBP has also published an updated CAPE user guide. The guide includes screenshots and filing instructions to help businesses submit IEEPA refund claims correctly.

Fraud Warnings and Best Practices 

CBP has issued a warning to businesses on the possibility of scams and other fraudulent activity related to the refund process. The agency expects scammers to use social media, email, text, and other methods to get account information from importers or authorized providers. 

Individuals should beware of anyone who says they will file for an IEEPA refund on behalf of the business. In these cases, the scammer generally asks for personal along with banking information. Businesses are encouraged to only provide these details to trusted advisors and to use secure channels when doing so. Individuals should also use only verified accounts through the ACE Secure Data Portal to submit for a tariff refund. Businesses are advised not to enter information into any other website that claims to be processing IEEPA refunds. 

As a reminder, CBP will not contact a business or individual to ask for social security numbers, bank account information, or passwords. If an email claiming to be from CBP is received, review the email with an advisor before responding or clicking on any links. It may be a phishing scam. Businesses can reduce the risk of falling victim to fraud by staying vigilant and monitoring relevant accounts for suspicious activity. 

Contact Us

The IEEPA refund process is ongoing. CBP likely still has millions of entries to process and billions of dollars in anticipated refunds and interest to issue. Businesses will want to review customs documentation and compliance processes before submitting a claim. If you have questions about the information outlined above or need assistance with another tax or accounting issue, Wilson Lewis can help. For additional information call 770-476-1004 or click here to contact us. We look forward to speaking with you soon.