Status Update – No Change to Filing Requirements; Ongoing Litigation and System Enhancements Continue
1. IEEPA Refunds (CAPE) – Reconciliation Functionality in Development
What’s New
CBP confirmed at the June 9, 2026, CIT hearing that CAPE Phase 2 functionality for reconciliation entries (Type 09) is targeted for launch on June 29, 2026. Phase 3 (finally liquidated entries) expected by the end of July 2026.
As of early June, approximately $94.94 billion in refund claims have been accepted for processing through CAPE Phase 1.
No changes to current Phase 1 filing procedures.
Current Status / What This Means
No changes to current filing procedures at this time.
Importers should continue to:
File entries as usual
Pay duties as assessed
Utilize CAPE only where currently applicable (Phase 1 eligibility)
Reconciliation (Important)
Reconciliation entries (Type 09) are not yet supported in CAPE for IEEPA refunds.
CBP continues to advise the trade to hold off on filing reconciliation entries for IEEPA-related refunds unless filing deadlines are approaching.
This avoids submissions that may be rejected or require correction once Phase 2 functionality is deployed on June 29, 2026.
Importers with imminent reconciliation deadlines should consult their broker or the Janel Compliance Team promptly.
Regulatory / Legal Considerations
The IEEPA refund process remains subject to ongoing litigation and appeals, including challenges to the scope of refunds and eligibility for certain entry types (e.g., finally liquidated entries).
CAPE is being implemented in phases, and future functionality and eligibility criteria may change based on court outcomes and CBP guidance.
2. Section 122 Tariffs (10%) – Remain in Effect Pending Appeal
The U.S. Court of Appeals for the Federal Circuit has allowed continued collection of the 10% Section 122 tariffs while the government’s appeal proceeds.
The CIT’s May 2026 ruling (which found the tariffs unauthorized) was limited in scope and has been stayed by the Federal Circuit. This is a procedural stay only — it does not represent a final determination on the merits.
No change as of today for importers: tariffs remain in effect and must continue to be paid on applicable imports.
If the tariffs are ultimately invalidated, refunds (with interest) have been identified by the court as the mechanism to address duties paid during the interim period.
Timing reminder: The tariffs are temporary and scheduled to expire July 24, 2026, absent further congressional action or modification.
For assistance and additional questions, please reach out to Janel Group's Compliance Team or a Janel Group Representative.
Director of Trade Compliance
Senior Compliance Analyst