U.S. Customs and Border Protection (CBP) Status Report and Court of International Trade (CIT) Developments and updates | November 2026
Importers seeking refunds of tariffs imposed under the International Emergency Economic Powers Act (IEEPA) should be aware that the refund landscape continues to evolve.
Recent developments involving CBP's CAPE Phase 3 process and the certification of the Freestyle World class action provide additional insight into potential refund opportunities for certain importers. However, significant legal and procedural requirements remain, and neither development guarantees refunds.
Importers that paid the challenged IEEPA duties should continue monitoring litigation and CBP guidance to understand how these developments may affect their entries.
Source Documents
https://www.cbp.gov/trade/programs-administration/trade-remedies/ieepa-duty-refunds
https://www.cit.uscourts.gov/documents
https://www.strtrade.com/trade-news-resources/str-trade-report/october/ieepa-refunds-trick-or-treat
BDO Analysis of Freestyle World Class Certification
Who Is Impacted
This update may be relevant to:
· Importers that paid challenged IEEPA duties.
· Companies involved in pending IEEPA litigation before the CIT.
· Importers with finally liquidated entries that may be affected by court-ordered reliquidation.
· Companies evaluating potential refund opportunities related to IEEPA duties.
Key Developments
CAPE Phase 3
CBP has reported significant activity under CAPE Phase 3. As of October 23, CBP had accepted 3,960 CAPE Phase 3 declarations covering more than 15.8 million entries.
CAPE Phase 3 is intended to facilitate refunds on certain finally liquidated entries covered by CIT orders directing reliquidation. This includes certain entries that were previously protested.
In customs terms, liquidation is CBP's final determination of duties owed on an entry. Reliquidation allows CBP to revise that determination when authorized by law or court order.
CBP is implementing Phase 3 on a rolling basis. Currently, only plaintiffs that provided valid importer of record numbers before August 14 are eligible to submit declarations. CBP has also indicated that eligibility notifications are being sent to legal counsel rather than directly to importers.
Importantly, CAPE Phase 3 is not a broad refund program for all finally liquidated entries. Based on current CBP guidance, the process applies only to entries covered by a CIT reliquidation order. For many importers, participation may require prior litigation and a favorable court order.
Freestyle World Class Action
The CIT recently certified the Freestyle World IEEPA tariff case as a class action.
The certified class includes certain importers that paid the challenged IEEPA duties between February 1, 2025, and February 19, 2026, excluding entities that have filed separate refund actions.
If the class ultimately prevails, qualifying class members may have a potential path to refunds without filing separate CIT actions.
However, class certification does not determine the merits of the case and does not guarantee refunds. Additional litigation, including potential appellate review, may occur before any class-wide relief is granted, and any recovery would remain subject to future court rulings.
Required Actions
· Review whether your company paid the challenged IEEPA duties during the applicable period.
· Maintain records related to affected entries, duty payments, protests, and liquidation status.
· Monitor CBP guidance and court developments relating to CAPE Phase 3 and the Freestyle World litigation.
· Consult qualified legal counsel regarding litigation strategy, eligibility, or potential refund claims.
Risk of Non-Compliance
Importers that do not actively monitor litigation and refund developments may miss important deadlines, eligibility requirements, or opportunities to recover duties, where available.
Janel's Ability to Help
Janel can assist clients with:
· Reviewing entry activity to identify potentially affected imports.
· Running customs data and entry reports.
· Gathering liquidation and duty payment information.
· Monitoring regulatory and litigation developments.
· Coordinating customs-related data requests that may support refund evaluations.
Janel Group does not provide legal advice. Clients should consult qualified legal counsel regarding litigation strategy, eligibility, and legal rights associated with potential IEEPA refund claims.
For assistance and additional questions, please reach out to Janel Group's Compliance Team or a Janel Group Representative.
Vice President of Compliance
Director of Trade Compliance
Senior Compliance Analyst