WASHINGTON — The Trump administration is set to launch the first phase of a new online system on Monday for processing refunds of tariffs imposed under the International Emergency Economic Powers Act that were struck down by the U.S. Supreme Court in February, U.S. Customs and Border Protection said.
The Consolidated Administration and Processing of Entries, or CAPE, system will go live at 8 a.m. EDT on April 20 within the Automated Commercial Environment secure data portal. It will allow importers and authorized customs brokers to submit consolidated refund requests for eligible IEEPA duties, including interest where applicable, rather than processing refunds on an entry-by-entry basis, according to a CBP filing with the U.S. Court of International Trade and a Cargo Systems Messaging Service notice.
The Supreme Court ruled on Feb. 20 that the tariffs exceeded the president's authority under IEEPA. The Court of International Trade later ordered CBP to process refunds on affected entries. CBP estimates the total refunds could reach about $166 billion, though the initial phase of CAPE will cover certain unliquidated entries and recently liquidated ones, representing roughly 63 percent of the more than 53 million import entries at issue.
Importers of record or their authorized brokers must have an ACE Portal account and be enrolled for electronic ACH refunds to participate. They will submit a CAPE Declaration through the portal. Refunds are expected to be issued within 60 to 90 days after acceptance of a declaration, CBP said.
“CBP is confident that it can develop and implement new ACE functionality that will streamline and consolidate refunds,” a CBP official stated in a prior court filing.
The rollout will occur in phases, with the first phase focusing on simpler scenarios. More complex entries will be addressed in later stages. Not all importers have completed preparatory steps; only about 20 percent of eligible companies had taken required actions for electronic payments as of this week, according to CBP.
The agency has published guidance documents, including a fact sheet, information notice and reference guide, on its website to assist users.
As of Thursday, the system was on track for the April 20 launch. Details on the exact amount of refunds to be processed in the initial phase and the timeline for subsequent phases remain subject to further implementation.
