US Tariffs Update –IEEPA Rebate Process Commences April 20, 2026, Updates on Section 122 Temporary Tariffs and Section 301 Proposed Tariffs

US Tariffs Update –IEEPA Rebate Process Commences April 20, 2026. Click here or continue below to read the full update on refunds, updates on the Section 122 Temporary Tariffs enacted by the Trump administration immediately upon the IEEPA tariffs being ruled unconstitutional, and new proposed Section 301 permanent tariffs that may be enacted as early as this summer.

If you are a seller of goods that were imported into the United States between April 9, 2025, and February 23, 2026, you may be entitled to a refund of tariffs that were ruled illegal by the US Supreme Court.

IEEPA Tariff Refunds

Phase I of the newly devised Consolidated Administration and Processing of Entries (CAPE) Tool within the Automated Commercial Environment Secure Data Portal (ACE) administered by Customs and Border Control (CBP) will be launched on April 20, 2026. The tool is designed to process refunds of tariffs imposed by the Trump Administration under the International Emergency Economic Powers Act (IEEPA) which were ruled unlawful by the US Supreme Court in its ruling in Learning Resources, Inc. v. Trump. [1]

Refunds are owed to over 330,000 importers amounting to $166 billion. CBP has indicated that the tool is designed to consolidate refunds of IEEPA duties including interest rather than processing refunds on an entry-by-entry basis. CBP plans to implement CAPE through a phased development approach, adding more functionality in subsequent phases for more complicated scenarios. Phase 1 is limited to certain unliquidated entries and some liquidated entries within 80 days after their liquidation.

Who can submit a refund request?

Importers of Record (IORs) and customs brokers will be able to file a CAPE Declaration through their web-based ACE Secure Data Portal (ACE Portal) account. The CAPE Declaration will consist of the list of entries for which refunds of IEEPA duties are being requested. Filers will not use the Automated Broker Interface (ABI) to file a CAPE Declaration. CBP will provide a template for the Declaration.

Once a CAPE Declaration is validated and accepted, ACE will update the duties, and following CBP review and determination of that the tariff is final (“liquidated”), the refunds will be consolidated by IOR, or by the party the IOR has designated to receive refunds on its behalf via a designated form.

CAPE Declarations may not be amended once submitted, so it is imperative that they form be submitted accurately. More than one CAPE Declaration may be submitted.

Companies that paid tariffs to the IOR under a contract cannot use the CAPE system. Their claims fall under more involved scenarios. For example, an IOR may recover from CBP and the company that ultimately paid the tariff seeks reimbursement from the IOR.

Timing: Phase 1 of the tool will be functional on April 20, 2026. CBP anticipates that refunds will be issued 60-90 days following acceptance of a CAPE Declaration.

Potential secondary sale of IEEPA refund rights. A nascent secondary market for the purchase of IEEPA refund claims by investors is developing. The discount applied is impacted by several factors including the liquidation status and protest deadlines.

Section 122 Tariffs

In response to the Supreme Court ruling in Learning Resources, the Trump Administration immediately acted to impose blanket 10% tariffs applying broadly to most imports, claiming authority under Section 122 of the Trade Act purportedly to address balance-of-payments deficits. These tariffs are short-lived: they expire in July 2026 unless extended by an Act of Congress which is uncertain and perhaps unlikely in this election year.

Attorneys general in nearly half of the US states sued the administration claiming that there is no balance of payments crisis and that the Act does not authorize the tariffs.

If these tariffs are likewise deemed illegal, there may be eventual refunds due as well.

Section 301 Tariffs

The Trump Administration has also proposed new tariffs under Section 301 of the Trade Act on the basis of purported foreign excess manufacturing capacity across 16 economies and forced labor practices across 60+ countries. These tariffs are under investigation through May and could be enacted as early as the summer, with a long-term impact.

The proposed structural excess capacity tariffs target vast industry sectors across manufacturing and consumer goods including electronics, automotive, batteries, factory equipment, clean energy, ships, and solar modules. The proposed forced labor tariffs target all non-excluded sectors from countries without adoption and enforcement of an import prohibition for forced labor goods.

How we can assist you.

• Evaluation of claims and negotiations with potential IEEPA refund claim counterparties;
• Preparing and filing a CAPE Declaration Reviewing underlying agreements with an agent IOR to ascertain your rights;
• Negotiations and dispute resolution with an agent IOR;
• Renegotiating IOR agreements to address tariff refunds generally;
• Preparing comments for submission to the Office of the US Trade Representative.

If you have any questions or comments please reach out to:

Noreen Weiss
[email protected]
+1 (646) 513-3284

Luke Engan
[email protected]
+1 (646) 586-2090

[1] On February 20, 2026, the United States Supreme Court’s decision in Learning Resources, Inc. v. Trump, 607 U.S. ___ (2026) with Docket No. 24-1287, ruled that the sweeping tariffs imposed by the Trump Administration under IEEPA were illegal in that the Act does not grant the president authority to impose tariffs. US tariffs imposed by Trump under IEEPA terminated at 12:00 am eastern time on February 24, 2026. In response to that ruling, the Court of International Trade (CIT) on March 4, 2026, issued an order effectively directing CBP to initiate a refund process immediately.