Trade Advisory Update

IEEPA Duties – Liquidation Status and CBP Processing

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This advisory supplements our prior communications regarding the invalidation of IEEPA-based tariffs. It provides clarity on how U.S. Customs and Border Protection (CBP) is treating affected entries based on liquidation status, and how refunds will be processed operationally.

Treatment of Entries Based on Liquidation Status

The U.S. Court of International Trade has directed CBP to treat all affected entries as if IEEPA duties never applied, regardless of liquidation status.

1. Unliquidated Entries: Entries that have not yet liquidated must be liquidated without IEEPA duties. When CBP finalizes these entries, the duty calculation must exclude IEEPA tariffs.
2. Liquidated but Not Final Entries: Entries that have liquidated but remain within CBP’s normal reliquidation window must be reliquidated to remove IEEPA duties.
3. Liquidated and Final Entries: Even where entries are fully liquidated and normally considered final, the court order directs CBP to reliquidate those entries without IEEPA duties.

How CBP Is Implementing This Process

CBP has advised that it cannot operationally correct entries on an entry-by-entry basis at scale. As a result, CBP is using a new ACE-based system called CAPE (Consolidated Administration and Processing of Entries) to implement liquidation, reliquidation, and refunds.

Key Takeaway

Regardless of whether an entry is unliquidated, liquidated, or final, CBP is required to treat it as if IEEPA duties never applied. However, importers must affirmatively submit claims through CAPE for CBP to process corrections and issue refunds.

Need support navigating this development?

Our trade and customs specialists are actively monitoring CBP guidance and can assist with entry reviews, refund readiness, and coordination with brokers as implementation unfolds. Reach out to our Tariff Response Unit today.