Tariff refunds are moving, but Phase 3 is delayed

U.S. Customs and Border Protection is processing billions of dollars in potential tariff refunds, but the phase intended to handle some of the most legally and technically complicated entries remains temporarily delayed.

In an August 25, 2026 update to the Court of International Trade, CBP said it was holding back the deployment of CAPE Phase 3 while it builds validations designed to ensure that only court-authorized changes to International Emergency Economic Powers Act duties are made on finally liquidated entries. CBP did not provide a new opening date.

The update used data through August 21. CBP said nearly 200,000 declarations covering about 26.4 million entries had passed validation, representing approximately $132.5 billion in potential and certified refunds. About $106.6 billion had been completed, certified and sent to the Treasury for disbursement.

That figure does not necessarily mean every importer has received money. Sending funds to Treasury is one step in a process that can still involve electronic transmission, account-level processing and coordination with the importer of record or an authorized designee.

Phases 1 and 2 continue

CBP said existing CAPE functionality for Phases 1 and 2 remains fully operational and is not affected by the Phase 3 delay. Importers with accepted claims in those phases should check their ACE records, broker communications and banking information rather than assume a refund has reached their account.

CBP also reported that roughly 22,170 refunds totaling about $1.7 billion had not been transmitted to Treasury because Automated Clearing House banking information was missing. The relevant account information generally must be supplied by the importer of record or an authorized CBP Form 4811 designee.

For businesses, that makes a records check important. Importers should confirm that importer-of-record and entry numbers match, review any refund templates submitted by a broker or filer, and verify that the appropriate ACH information is available in ACE. CBP has also identified mismatched importer numbers, incorrect entry numbers and nonmatching refund templates as possible validation problems.

Why Phase 3 is more difficult

Phase 3 concerns finally liquidated entries filed by plaintiffs for which the Court of International Trade has ordered reliquidation. In customs practice, liquidation generally makes an entry final unless the government or an importer takes an authorized step to change it. That leaves less room for an automated adjustment to be made incorrectly.

CBP told the court that it needs safeguards so the reliquidation process changes the IEEPA duty amount without altering other duties or fees on the entry. An incorrect adjustment could affect unrelated customs obligations, including regular duties or trade-remedy charges such as antidumping or countervailing duties.

A recent Court of International Trade opinion helps illustrate why entry-level customs disputes can produce mixed results. In Inspired Ventures, LLC v. United States, the court ordered one entry released after finding that the legal requirements had been met, while denying release of another entry because required antidumping and countervailing duty deposits had not been paid. The case was not a ruling on CAPE, but it shows why a refund cannot be treated as a simple across-the-board reversal of every charge on an entry.

The unresolved question for non-litigating importers

Another major uncertainty is who ultimately qualifies for relief. The government is contesting a court order that would provide refunds broadly, while importers and other parties have argued over whether a class-based mechanism can reach companies that did not file individual lawsuits.

The Court of International Trade lists an August 19 oral argument in Freestyle World, Inc. v. United States, Court No. 26-01088. That proceeding was an argument, not a final ruling establishing that every importer is covered. Importers should not assume that a universal remedy already exists.

What happens next

CBP’s next court-ordered progress report is due September 15, 2026, followed by a closed conference on September 16, according to the reported court schedule. Importers should watch for a confirmed Phase 3 deployment date, updated validation guidance and clarification about finally liquidated entries.

Consumers generally will not receive direct government checks or automatic point-of-sale refunds. The process runs through the importer of record or an authorized designee, and any effect on retail prices will depend on how importers, distributors and retailers handle recovered duties.

Companies with significant exposure should preserve their customs records and discuss protests, litigation positions or claim-preservation deadlines with a licensed customs broker or trade lawyer. The current picture is substantial operational progress, but not a completed or universal refund program.

Sources

• Court of International Trade — Freestyle World proceeding record
• Law360 — CAPE Phase 3 delay
• International Trade & Supply Chain Insights — CBP refund update
• Associated Press — Tariff-refund litigation

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