The latest developments mark a transition from legal and policy change to practical implementation, with the focus now on how importers recover IEEPA duties and prepare for CBP processing through the Automated Commercial Environment.

As refund mechanisms are being operationalized by U.S. Customs and Border Protection, importers are encouraged to ensure their ACE access and ACH refund setup are fully in place. Woodland Group has published a series of practical guides to support this process, including application, account setup and refund readiness resources, which can be accessed throughout this update. The sections below provide a structured timeline of developments from the initial court rulings through to current implementation, helping to contextualize both eligibility and next steps.

CBP Webinar: IEEPA Refund Process Overview (15 April)

CBP has announced a webinar taking place on 15 April 2026 at 2:30 p.m. ET, providing an overview of the IEEPA refund process under CAPE.

The session is expected to cover:

• Submission of CAPE Declarations
• Entry recalculation and processing
• Refund issuance through ACE

This webinar provides additional insight into how the process will operate ahead of the 20 April deployment.

14th April 2026 – CAPE Launch and IEEPA Refund Processing Enters Execution Phase

The latest developments from U.S. Customs and Border Protection (CBP) mark a clear transition from system readiness to operational execution in the administration of IEEPA duty refunds.

With the first phase of the Consolidated Administration and Processing of Entries (CAPE) tool scheduled for deployment on 20 April 2026, importers now have greater clarity on how refunds will be processed in practice through the Automated Commercial Environment (ACE).

CAPE: Introducing the Operational Framework for Refunds

CBP has confirmed that CAPE will serve as the primary mechanism for submitting and processing IEEPA refund claims within the ACE Secure Data Portal.

This development builds on earlier guidance regarding ACE readiness and ACH setup, providing the first structured process for refund execution.

What CAPE Will Do

• Enable electronic submission of refund claims via CAPE Declarations
• Remove IEEPA tariff codes from eligible entries
• Trigger duty recalculation and entry updates
• Support liquidation and reliquidation workflows
• Issue refunds on a consolidated basis (grouped by importer or designated recipient)

This represents a shift from a purely entry-by-entry administrative model to a more streamlined and centralized refund process.

Phase 1 Scope and Limitations (From 20 April 2026)

The initial release of CAPE will apply to:

• Certain unliquidated entries
• Entries within 80 days of liquidation

CBP has confirmed that CAPE will be deployed in phases, with additional functionality expected to follow. As such, not all refund scenarios will be covered in this first release.

Process Overview: How Refunds Will Be Handled

To initiate a refund under CAPE:

1. The Importer of Record (IOR), or their authorized customs broker, submits a CAPE Declaration via the ACE Portal
2. CBP removes the IEEPA tariff from the entry and recalculates duties
3. The entry is reviewed and liquidated or reliquidated
4. Refunds are issued via ACH and may be consolidated across multiple entries

While the legal basis for refunds remains tied to individual entries, CAPE introduces a more efficient mechanism for processing and payment.

ACH Refund Requirement – Reinforced

As part of this transition, CBP has reiterated that refunds are issued electronically via Automated Clearing House (ACH).

While this requirement has been in place since 6 February 2026, recent CBP communications serve as a reminder that:

• Refunds will not be issued via paper cheque (except in limited cases)
• A U.S. bank account and routing number are required
• ACH setup must be completed within the ACE Portal or via an authorized broker

Importers who have not yet completed this step may experience delays in receiving funds, even where entries are eligible for refund.

Actions Recommended Ahead of 20 April

With CAPE Phase 1 imminent, importers should take the following steps:

• Confirm access to the ACE Secure Data Portal
• Verify ACH refund enrolment and banking details
• Review IEEPA-affected entries to determine eligibility
• Coordinate with customs brokers regarding CAPE Declaration submission
• Ensure internal alignment on refund recipient designation (CBP Form 4811 where applicable)

Woodland Group has published supporting resources to guide this process, including:

• ACE Portal Account Application Checklist
• ACH Refund Setup Readiness Checklist
• Combined ACE and ACH Setup Guide

What This Means for Importers

The introduction of CAPE marks the first practical implementation step in the IEEPA refund process.

• The focus is now on execution rather than preparation
• Refund processing is becoming more structured, but remains phased and conditional
• Timely system readiness will directly impact speed of recovery

While not all entries will fall within the scope of Phase 1, this development provides important visibility into how CBP intends to manage refund administration going forward.

Looking Ahead

CBP has indicated that further enhancements to CAPE will be introduced in subsequent phases, expanding coverage and functionality.

Woodland Group continues to monitor all developments closely and will provide further updates as additional guidance becomes available.

Support from Woodland Group

Navigating the transition from legal entitlement to operational recovery requires both system readiness and technical understanding of CBP processes.

Woodland Group’s in-house customs and trade compliance specialists are supporting clients with:

• ACE access and account structuring
• ACH refund configuration and validation
• Entry reviews and refund eligibility assessment
• CAPE submission planning and coordination

If you would like support in preparing for CAPE or understanding how these changes apply to your business, please click here to be introduced to a trade compliance specialist.

CBP Resources: ACE and ACH Refund Setup

CBP has published supporting materials to assist importers with ACE access and ACH refund configuration, including:

• Overview: ACH Refund Enrollment
• ACE Portal and ACH Refund FAQs
• ACE Portal Importer Account Application guidance
• ACH Refund Enrollment guidance within ACE
• Replacement refund instructions for undeliverable payments

8th April 2026 – Woodland Update: ACE Readiness and IEEPA Refund Implementation

As the U.S. tariff landscape continues to evolve following the withdrawal of IEEPA based measures, the focus has now shifted from legal developments to practical implementation and refund execution. For importers, the key issue is no longer whether tariffs apply, but how and when previously paid duties may be recovered, and what steps are required to enable that recovery.

At the centre of this process is the Automated Commercial Environment (ACE), which will serve as the primary platform through which the U.S. Customs and Border Protection (CBP) administers duty recalculations and issues refunds. CBP has indicated that refunds will be processed electronically, with entries reviewed and adjusted through ACE as part of the liquidation and reliquidation process. While full system functionality is still being implemented, it is clear that importer readiness within ACE will be critical to receiving funds efficiently.

Access the ACE Portal and confirm your account status here: https://ace.cbp.dhs.gov

In this context, Woodland Group is advising clients to prioritize verification of their ACE access and internal account structure. For importers who do not yet have access to the ACE Secure Data Portal, the starting point is ensuring that the application process is correctly completed and aligned with CBP records. Woodland’s ACE Secure Data Portal Account Application Checklist provides a structured guide to this process, including validation of CBP Form 5106 data, designation of a Trade Account Owner, and submission of the appropriate application.

Start your ACE application and avoid delays by following this checklist. Click here

Beyond access, the ability to receive refunds depends on successful enrollment in CBP’s ACH refund program. CBP now requires that refunds are issued electronically to a U.S. bank account, and this setup is separate from any existing duty payment arrangements. Woodland has developed an ACH Refund Setup Readiness Checklist to help importers confirm that all required steps, from account ownership and portal permissions to banking details and internal confirmations, have been completed.

Ensure your business is ready to receive refunds without delay: Click here

For organizations requiring a more comprehensive walkthrough, Woodland has also published a combined ACE Portal Account and ACH Refund Set Up Support Guide, which brings together both account creation and refund configuration into a single step by step process. This guide is particularly useful for teams managing the process across multiple stakeholders or locations, as it clarifies roles, responsibilities, and system navigation within ACE.

Follow the full step by step guide to complete ACE setup and ACH enrollment: Click here

Taken together, these resources reflect a broader shift in the administration of U.S. customs processes. Refund eligibility will ultimately depend on CBP implementation and entry specific factors, but the ability to receive those funds will depend on system readiness, data accuracy, and timely action by the importer.

This update is intended to support importers in preparing for the next phase of implementation. Earlier developments regarding the legal status of IEEPA tariffs and subsequent court and policy actions are outlined in the February and March updates below. Woodland Group continues to monitor CBP guidance closely and will provide further updates as refund procedures and timelines become more clearly defined.

If you would like to understand more about this update, please speak with your Woodland representative or click here to be introduced to a trade compliance specialist.

6th March 2026 – The U.S. Court of International Trade ordered the U.S. Customs and Border Protection to remove IEEPA tariffs and begin refunds for eligible importers.

In February 2026, the U.S. Supreme Court held that the IEEPA does not authorize the imposition of tariffs, invalidating tariffs imposed under that statute. Following that ruling, refund-related litigation returned to the U.S. Court of International Trade (CIT).

On March 4th, 2026, CIT issued a directive to U.S. Customs and Border Protection (CBP) to initiate a comprehensive refund process for importers. CBP must liquidate all unliquidated entries without any IEEPA duties that were paid and reliquidate all liquidated entries that are still within the protest period (180-days) and remove the IEEPA tariffs. This relief applies to all importers of record, regardless of whether they were original parties to the case. CBP is scheduled to brief the CIT on March 6th regarding the technical next steps for implementing the combined IEEPA and refund rulings.

What was not addressed:

The order does not explicitly address entries that are liquidated and outside the 180‑day protest window. The court has scheduled further proceedings on March 6th to discuss implementation issues and the treatment of these entries, and additional guidance may follow.

What this means for you:

• As the importer of record, confirm you have your ACE and ACH account active and correctly configured to receive refunds.
• Review your entries with IEEPA duties and confirm whether those entries are unliquidated or liquidated but not final.
• CBP has indicated that refunds may not be immediate, as the agency must ensure compliance with other applicable duties and fees (e.g., Section 301, Section 232, antidumping/countervailing duties).
• CBP has not yet published timing or operational steps for how it will complete liquidation, reliquidation, and issue any resulting refunds or credits.
• There is no automatic entitlement to refunds. Refunds will depend on individual entry circumstances (such as entry status, protests, and statutory deadlines). We are taking proactive steps to ensure you are well placed to receive refunds should your entries become eligible and will be in touch regarding the next steps.

The CIT’s order represents a critical development for U.S. importers, opening the door to substantial refunds of IEEPA tariffs on a nationwide basis. While questions remain regarding timing and final implementation, the ruling clearly establishes that refund eligibility is not limited to litigants and applies broadly to all qualifying entries.

On March 5th, 2026, 24 U.S. States filed suit against the Trump administration’s recently imposed Section 122 tariffs to the Court of International Trade. This does not constitute any removal of Section 122 tariffs.

We will continue to monitor developments closely and share updates here as soon as formal agency guidance becomes available. If you have questions about how this may affect your shipments or duty exposure, please contact your Woodland Group representative.

24th February 2026 – CBP Discontinues IEEPA Tariff Collection; Section 122 Tariff Takes Effect at 10%

U.S. Customs and Border Protection (CBP) has confirmed that it will discontinue the collection of tariffs imposed under the International Emergency Economic Powers Act (IEEPA) effective 12:00 a.m. Eastern Time on 24 February 2026.

The measures scheduled for discontinuation include:

• Reciprocal tariffs imposed under IEEPA
• Fentanyl-related tariffs on imports from Canada, Mexico and China
• The additional 40 percent tariff applied to certain imports from Brazil

CBP has advised that the Automated Commercial Environment (ACE) system will designate all associated Harmonized Tariff Schedule (HTS) codes as inactive from that time. This action follows the recent Supreme Court ruling and a subsequent executive order formally terminating the IEEPA-based tariff measures.

Section 122 Tariff to Be Implemented at 10 Percent

Separately, a new tariff implemented under Section 122 of the Trade Act of 1974 is scheduled to take effect at 12:01 a.m. Eastern Time on 24 February 2026. The Section 122 measure will establish an across-the-board tariff rate of 10 percent, as outlined in a recent presidential proclamation.

At the time of publication:

• The Section 122 tariff is confirmed at 10 percent
• No formal update has been issued regarding any increase to 15 percent
• No additional implementation changes have been announced

Importers should ensure that entries made on or after 24 February reflect the applicable Section 122 rate.

What This Means Operationally

• IEEPA tariffs will cease to be collected as of 24 February 2026
• Section 122 tariffs will apply at 10 percent from that date
• A limited exemption will apply to goods exported by ocean prior to 24 February and entered before 28 February
• ACE system updates are expected to align with the effective timing
• Entry reviews may be required to ensure correct tariff application

Woodland Group recommends that importers review current and upcoming entries to confirm proper treatment under the revised framework, including verifying shipment departure dates and confirming expected U.S. entry timing to determine whether the limited transit exemption criteria are met.

Ongoing Monitoring

While the discontinuation of IEEPA tariffs provides clarity on one statutory authority, broader U.S. trade policy remains subject to further administrative or legislative developments. Woodland Group continues to monitor guidance issued by CBP and other U.S. agencies and will provide further updates as additional clarification becomes available.

21st February 2026 - IEEPA Tariffs Invalidated: Section 122 Measures Increased to 15 Percent

Following the Supreme Court’s decision invalidating IEEPA tariff authority, the U.S. administration has announced changes to tariff levels under alternative statutory authority.

On 21 February 2026, it was reported that the global tariff rate previously established under Section 122 of the Trade Act of 1974 has been increased to 15 percent. This action reflects the maximum rate permitted under the Section 122 framework, which allows temporary tariffs of up to 15 percent for a limited duration, subject to statutory requirements. There is currently no specific implementation date provided for the revised tariff rate, and formal administrative guidance has not yet been issued regarding its application or timing.

As with prior developments, operational details, including procedures for customs processing and potential implications for importers, will depend on the publication of authoritative instructions by the relevant U.S. agencies.

20th February 2026 - U.S. Supreme Court Clarifies Limits of IEEPA Tariff Authority

The U.S. Supreme Court has ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the imposition of tariffs, even during a declared national emergency.

The Court reaffirmed the constitutional principle that tariffs constitute a form of taxation and that the authority to impose them rests with Congress. General statutory language permitting regulation of imports was found insufficient to support sweeping tariff measures of significant economic impact.

As a result, tariffs imposed under IEEPA to address drug trafficking and trade deficits have been invalidated.

What the Court Addressed

The Court held that:

• IEEPA does not provide statutory authority to impose tariffs
• The Federal Circuit’s judgment striking down the tariffs was affirmed
• The ruling resolves the question of legal authority only

The decision addresses whether the tariffs were lawfully enacted. It does not determine the practical or administrative consequences flowing from the ruling.

What the Court Did Not Address

The judgment does not:

• Order or discuss refunds
• Direct U.S. Customs and Border Protection to take specific administrative action
• Provide guidance on reliquidation procedures
• Determine the treatment of protests
• Rule on retroactivity or remedies

Implementation remains subject to administrative interpretation and further guidance.

What Happens Now

Until U.S. Customs and Border Protection issues formal implementation guidance, IEEPA tariffs will continue to be applied to U.S. entries. This ruling represents an important legal step, but it does not immediately alter operational procedures at the border.

Importers should therefore assume that current entry processes and duty applications remain unchanged unless and until CBP publishes specific administrative instructions.

Refund Considerations

The decision does not automatically create entitlement to refunds.

Whether duties may be recoverable will depend on individual entry circumstances, including:

• Entry status, whether liquidated or unliquidated
• Whether timely protests were filed
• Applicable statutory limitation periods
• Administrative guidance issued by U.S. Customs and Border Protection

Until formal direction is provided, entitlement to recovery cannot be assumed.

Foreign Importers of Record

Questions have arisen regarding the position of foreign importers of record. At present, no specific administrative guidance has been issued addressing eligibility following the ruling.

As with all potential refund considerations, outcomes are likely to depend on:

• The importer of record listed on the entry
• Duty payment records
• Procedural standing under U.S. customs law
• Administrative interpretation of the Court’s decision

Further clarification will be required before definitive conclusions can be drawn.

Alternative Statutory Authorities

The Supreme Court’s decision does not bring tariff policy to an end; rather, it redirects the legal basis upon which such measures may be implemented.

Section 122 of the Trade Act of 1974 is widely viewed as a potential short-term mechanism. It expressly authorizes the President to impose temporary import surcharges to address serious balance-of-payments concerns. Key features include:

• Tariffs of up to 15 percent ad valorem
• A maximum duration of 150 days
• Any extension requiring an Act of Congress
• No investigation required prior to imposition

Because Section 122 explicitly authorizes the imposition of duties and includes defined statutory limits, it provides clear legal authority for temporary action. It may therefore function as an interim measure while longer-term options are considered.

Section 301 of the Trade Act of 1974 provides authority for country-specific tariffs following investigation and determination of unfair trade practices by the Office of the U.S. Trade Representative. Although the process is more procedurally intensive and slower to implement, measures adopted under Section 301 may remain in place for extended periods once established. Section 122 or other tools could serve as a transitional mechanism while Section 301 investigations proceed.

Section 232 of the Trade Expansion Act of 1962 authorizes tariffs based on national security determinations by the Department of Commerce. While narrower in scope than the previously invoked emergency authority, Section 232 has undergone extensive judicial review and remains an established statutory framework for sector-specific measures, including steel, aluminium, and automotive products.

While the Court’s ruling limits the use of IEEPA as a source of tariff authority, established trade statutes continue to provide structured and legally defined pathways for tariff implementation.

Update: Administration Announces Section 122 Tariff Action

Subsequent to the Supreme Court’s ruling, President Donald Trump announced that his administration intends to implement a 10 percent global tariff under Section 122 of the Trade Act of 1974 as a replacement mechanism for the invalidated IEEPA tariffs.

During a White House press briefing, the President indicated that an executive order would be signed to impose the temporary tariff measure under Section 122, in addition to existing tariff structures.

The administration further indicated that additional investigations may be initiated under Section 301 and other statutory authorities concerning unfair trade practices.

At the time of publication, formal executive documentation and implementation guidance have not yet been released. The operational timing, scope, and administrative process for this measure will depend on the issuance of official instructions.

Ongoing Monitoring

Given the potential commercial implications, particularly regarding duty recovery and future tariff policy, Woodland Group continues to monitor developments closely.

This news feed will remain the primary source of structured updates and technical analysis as administrative guidance, agency implementation measures, or further legislative developments emerge.

If you require guidance on the potential impact of this ruling on your imports, refund exposure, importer of record status, or broader tariff strategy, we encourage you to contact a member of the Woodland Group team for tailored support and advice.

30th May 2025 - Ongoing Legal Developments

CIT Ruling and Appeal: On May 28, 2025, the U.S. Court of International Trade (CIT) issued a landmark decision, ruling that the IEEPA tariffs (including the Fentanyl and Reciprocal tariffs) were unlawful and exceeded the President's authority. The CIT ordered these tariffs to be revoked.

CAFC Grants Temporary Stay: The U.S. Government promptly filed an appeal with the Court of Appeals for the Federal Circuit (CAFC) and requested a stay of the CIT's order. As of May 29, 2025, the CAFC has granted this temporary stay. This means that the CIT's order to revoke the tariffs is currently paused.

District Court Ruling: In a separate, parallel case, a District Court for the District of Columbia also ruled on May 29, 2025, that IEEPA does not authorize the President to impose tariffs and granted a preliminary injunction for the two plaintiffs in that specific case. This ruling is also subject to an appeal by the government.

Jurisdictional Battle Continues: As of today, we have two courts (the CIT and the District Court) that have issued rulings on the IEEPA tariffs, each with their own implications, and the appellate courts are now involved in resolving these complex jurisdictional questions. The ultimate determination of which court holds jurisdiction and whose orders will prevail is still to be seen.

What This Means for Importers and Customs Brokers – Tariffs Remain in Place for Now:

Continued Tariff Collection: Due to the temporary stay granted by the CAFC, tariffs under the IEEPA will continue to be collected for the time being. Importers should continue to pay these tariffs as usual. The CAFC is expected to act quickly to consider the government's request for a longer-term stay.

Potential Refunds: While the CIT's ruling offers the potential for refunds of duties paid on these IEEPA tariffs (retroactive to their initial application dates, either February 4 or April 5), no refunds will be processed until all court issues are resolved and final decisions are made.

Action Required: Track and Document Entries: Woodland Group is committed to supporting our clients. Where we act as your broker, we will proactively track and document entries on which IEEPA tariffs were paid. This includes closely monitoring the expected liquidation date and the 180-day window for filing a protest. By maintaining this essential data, we aim to identify and act on potential opportunities for Post Summary Corrections (PSCs) for non-liquidated entries or protests for liquidated entries, helping you pursue potential refunds whenever they become necessary.

Contact Our Brokerage for Assistance:

We understand this is a confusing and uncertain time, and the situation is truly changing day by day. Our dedicated brokerage team is here to support you through these developments.

For any questions regarding your specific entries or the implications of these ongoing legal developments, please don't hesitate to contact your usual Woodland Group representative or our customs brokerage team directly.

Regarding protest filings or other formal actions, you can rest assured that we will proactively provide you with further guidance on when and how to initiate these steps as the legal landscape becomes clearer and if it becomes necessary to protect your refund eligibility. We're monitoring these developments very closely to ensure you receive timely and relevant updates.


Disclaimer: The information provided in this article is for general informational purposes only and does not constitute legal advice. It should not be used as a substitute for reviewing applicable U.S. laws or regulations, or for consulting with qualified legal counsel. This content reflects our interpretation and understanding of the subject matter at the time of publication and may not reflect the most current legal developments.