Importers seeking refunds of duties paid under the International Emergency Economic Powers Act (IEEPA) may be focused on ongoing court battles and CBP’s refund process, but a more immediate concern could have a greater impact on their ability to recover duties—liquidation timelines.
Refund Deadlines Are Approaching
According to CBP guidance, the Consolidated Administration and Processing of Entries (CAPE) system refund process is currently limited to certain entry types and generally applies to entries that remain unliquidated or are within 80 days of liquidation.
Liquidation is the final calculation of duties, taxes, and fees owed on an entry or drawback claim. Once an entry liquidates, CBP considers it legally closed. CBP generally liquidates entries within 314 days of the date of import. However, this timeline can be extended or accelerated depending on the circumstances. Once an entry has been liquidated for more than 80 days, options for pursuing a refund are limited under the current CAPE process.
Some IEEPA-affected entries have already exceeded the 80-day threshold, while others may still be eligible for relief. As a result, importers should continue monitoring potentially affected entries and review their liquidation status on an ongoing basis or risk missing refund opportunities.
Continued Development of Refund of Unlawful IEEPA Duties via CAPE
While CBP established CAPE to administer IEEPA refunds, questions remain regarding how broadly and how quickly relief will be implemented. The CIT has expressed concerns about the pace of refund administration, while CBP has appealed aspects of the court’s rulings to the Court of Appeals for the Federal Circuit (CAFC). Those proceedings continue to create uncertainty around the availability of refunds on all paid IEEPA duties.
For importers, however, the most immediate issue may not be the ongoing legal proceedings but ensuring they are prepared to act while potentially eligible entries remain within key liquidation timelines. Delays in gathering documentation or preparing CAPE submissions could affect an importer’s ability to recover duties, regardless of how the courts ultimately resolve the broader dispute.
In addition, importers shall consider discussing with their legal counsel necessary actions to consider protecting their recovery efforts on entries that have liquidated and are past the 80-day period for CAPE refund eligibility.
For additional information regarding eligible entry types and CAPE refund eligibility requirements, see our previous article, IEEPA Refund Process Update: CBP & Court of International Trade.
If you have questions about how these developments may impact your imports or wish to seek duty recovery opportunities, contact your Mohawk Global representative for guidance.