July 30th, 2026 – The U.S. Court of International Trade (CIT) has taken another significant step in the ongoing International Emergency Economic Powers Act (IEEPA) tariff refund process, ordering U.S. Customs and Border Protection (CBP) to begin reliquidating certain “finally liquidated” entries through its Consolidated Administration and Processing of Entries (CAPE) refund system.
The July 21st order from Senior Judge Richard K. Eaton provides long-awaited authority for CBP to process refunds on entries that had previously been considered beyond the normal protest period, while broader questions about the court’s authority remain under review by the U.S. Court of Appeals for the Federal Circuit.
Refund Process Expands
The order follows the U.S. Supreme Court’s February 2026 decision striking down the Trump administration’s IEEPA tariffs. Since then, the CIT has directed CBP to refund unlawfully collected duties, prompting the agency to develop the CAPE platform to process claims.
According to updates provided to the court, CBP had processed approximately $121.75 billion in anticipated refunds through July 10th, with roughly $86.3 billion already forwarded to the U.S. Department of the Treasury for payment.
While refunds for unliquidated entries and entries still within the normal liquidation period have moved forward, “finally liquidated” entries remained unresolved because CBP maintained it lacked authority to reliquidate them without a specific court order.
Court Orders Reliquidation
Judge Eaton’s latest order addresses that issue by directing CBP to reliquidate, without applying IEEPA duties, all plaintiff entries that have been liquidated for more than 80 days.
The ruling applies to more than 3,700 pending IEEPA refund cases before the CIT and provides the legal authorization the government previously argued was necessary before refunds could be issued for finally liquidated entries.
Importers with pending cases must submit required importer-of-record information and CAPE declarations following instructions provided by CBP through legal counsel. Once accepted, CBP will reliquidate the covered entries and process applicable refunds.
Rather than closing the litigation, the court left the consolidated cases on hold, recognizing that some importers may encounter issues during the refund process and could require additional judicial relief. Many plaintiffs are expected to voluntarily dismiss their cases after receiving full refunds through CAPE.
Appeal Still Leaves Questions for Non-Litigants
Despite the latest ruling, uncertainty remains for importers that did not file lawsuits.
The federal government continues to appeal the CIT’s broader refund orders, arguing that the court exceeded its authority by extending relief beyond the parties that filed suit. The appeal focuses primarily on finally liquidated entries and whether the CIT can order refunds for non-litigant importers. The government’s opening brief is due August 3rd, with responses expected later this year.
The Federal Circuit’s eventual decision could determine whether non-litigating importers are ultimately eligible for similar relief.
Class Action Could Provide Another Path
Separately, the CIT recently designated Freestyle World Inc. v. United States as the lead case for the consolidated IEEPA litigation following the dismissal of the previous lead case.
The court also indicated that class-action certification may be considered in the future. If approved, a class action could offer another avenue for importers that have not yet filed individual complaints to pursue refunds on finally liquidated entries. While no decision has been made, such a class could become especially significant if the Federal Circuit limits the CIT’s authority to provide relief to non-litigants.
What Importers Should Watch
For importers with pending CIT cases, Judge Eaton’s order removes a major procedural hurdle by authorizing CBP to reliquidate finally liquidated entries through CAPE. Those companies should continue monitoring additional CAPE guidance and refund processing timelines.
Importers that have not filed suit face a less certain outlook as the Federal Circuit appeal proceeds. The outcome of that appeal, along with any future class-action certification, could determine whether broader relief becomes available beyond current litigants.
As the refund process continues to evolve, importers with potential IEEPA duty claims should closely monitor both judicial developments and CBP implementation updates when evaluating available refund opportunities.
Read the full CIT Order here: https://tbgfs.com/wp-content/uploads/2026/07/CIT_July_21_IEEPA_Order_1081.pdf
