CAPE Phase 3 Is Now Live. Section 338 Import Ban In Effect. IOR Enforcement Active Since September 18.
CAPE Phase 3 launched October 6, 2026 — extending eligibility to finally liquidated entries for the first time, the largest remaining pool of unclaimed IEEPA refunds. The Section 338 import ban on certain Canadian-origin dairy, alcohol, and motor-vehicle goods took effect September 29, 2026 — with no USMCA exemption and no further extension. CBP has been immediately voiding Importer of Record numbers over inaccurate Form 5106 data since September 18, 2026 — now 19 days active. On the Canada front, the September 8 deadline brought a wave of escalation: Canada’s dollar-for-dollar retaliatory tariffs took effect on roughly 700 U.S. product lines, and the President signed five additional Section 338 proclamations the same day. On the refund side, CBP’s most recent public figures as of the September 11, 2026 court filing stand at $134.7 billion accepted for CAPE processing and roughly $122 billion disbursed by CBP, with 27.2 million entries processed. Both pending class-certification rulings — V.O.S. Selections (argued August 6) and Freestyle World (argued August 19) — still have not surfaced on the public docket. Here is everything importers need to know right now.
Current Status • October 7, 2026 • The Tariff Bureau Intelligence
Phase 3 IS LIVE (Oct 6) — Import Ban In Effect (Sept 29) — IOR Enforcement 19 Days Active — Postal Conference Held (Oct 1)
The compliance calendar has reached a critical inflection point. CAPE Phase 3 launched October 6, 2026 — extending CAPE eligibility to finally liquidated entries for the first time, per Deputy Commissioner Brandon Lord’s August 25 declaration in Freestyle World. Phase 3 does not require a prior court filing for eligibility. Effective September 29, 2026, the Section 338 outright import ban took effect on certain covered dairy, alcohol, and motor-vehicle goods of Canadian origin — with no USMCA exemption. A transition rule allowed goods imported but not yet entered for consumption before September 29 to remain under the existing 50% duty rather than the ban; there is no further extension. Under Executive Order 14411 ("Strengthening Customs Enforcement," signed June 3, 2026), CBP has been immediately voiding Importer of Record numbers over inaccurate or incomplete Form 5106 data since September 18 — now 19 days active. The CIT postal conference on IEEPA duties on international postal shipments was held October 1 — watch the docket for any resulting order from Judge Eaton. As of CBP’s September 11 filing, $134.7 billion has been accepted for CAPE processing and $122 billion disbursed. Neither class-certification ruling has surfaced on the public docket.
⚡ The Tariff Bureau • Current Strategy
Three Recovery Tracks — Phase 3 Is Live as of October 6
Phase 3 launched October 6, 2026 for finally liquidated entries — the largest remaining pool of unclaimed IEEPA refunds. Phase 3 does not require a prior court filing for eligibility. Layered on top, CBP’s IOR enforcement (active since Sept 18) and the Section 338 import ban now in effect on certain Canadian goods mean compliance matters as much as recovery. Phase 1 and 2 eligibility, protest rights under 19 U.S.C. §1514, and the permanent Section 301/232/338 architecture give importers three sustained recovery and protection tracks regardless of how the certification rulings and appeal resolve.
Critical Developments — Most Recent First
CAPE Phase 3 IS LIVE as of October 6 — Finally Liquidated Entries Now Eligible for the First Time
CAPE Phase 3 launched October 6, 2026 per Deputy Commissioner Brandon Lord's August 25 declaration (filed in Freestyle World, CIT No. 1:26-cv-01088). Phase 3 extends CAPE eligibility to finally liquidated entries — entries that were liquidated more than 80 days before the CAPE declaration filing date and have not been the subject of individual CIT complaints. This is the largest remaining pool of unclaimed IEEPA refunds. Importers with finally liquidated entries who are not among the approximately 3,700 filed CIT cases are now eligible to file — Phase 3 does not require a prior court filing for eligibility. Prepare your documentation and begin your assessment now. Phase 3 is expected to process entries on a rolling basis; earlier filing means earlier processing.
Phase 3 is live. Begin your free assessment now to confirm your eligibility and estimated refund exposure. Phase 3 processes entries on a rolling basis — the sooner you file, the sooner your claim moves through the queue. If you have finally liquidated entries and have not yet acted, this is the moment.
CBP Has Been Immediately Voiding Importer Numbers Over Inaccurate Form 5106 Data Since September 18
Under Executive Order 14411 ("Strengthening Customs Enforcement," signed June 3, 2026), CBP announced enhanced enforcement procedures to verify the accuracy of Importer of Record information submitted on CBP Form 5106. Beginning September 18, 2026, CBP may immediately void an IOR number if it determines the Form 5106 information on file is inaccurate or incomplete — in effect barring that importer from entering merchandise into the United States until the number is reestablished. CBP will notify the importer by email and may copy the customs broker of record. CBP states that broader revisions to importer eligibility regulations are under development.
An active, correctly registered IOR is a baseline CAPE eligibility requirement — a voided number would stall a pending or future refund claim as well as blocking new entries. This enforcement has been active since September 18. If your Form 5106 data has not been confirmed, verify it today before filing your Phase 3 declaration.
Lawmakers Press CBP Over Refund Delays — Account Approval Backlog Is Costing Importers the 90-Day Deadline
On September 9, a bipartisan group of House members sent a letter to CBP Commissioner Rodney Scott flagging that businesses in their districts have reported significant logistical hurdles clearing refunds. CBP requires refund requests to be submitted within 90 days of the original duties being liquidated — but the lawmakers say CBP is, in some cases, failing to approve importer CAPE accounts within that same 90-day window, making it impossible for the affected importers to meet the deadline through no fault of their own. The letter notes many of the importers at risk are small businesses operating on thin margins. No CBP response has been reported as of October 7.
If your CAPE account approval is pending and you are approaching 90 days from your liquidation date, do not assume the clock pauses — escalate directly with CBP and document your submission timeline in case the deadline needs to be contested later.
Canada's Retaliation Took Effect Sept 8 — U.S. Section 338 Import Ban Is In Effect as of September 29
Canada's dollar-for-dollar countermeasures took effect at 12:01 AM on September 8, 2026: tariffs of 15%, 25%, or 50% — each rate matched to the corresponding U.S. Section 338 or 232 rate — on roughly 700 U.S. product lines worth about $27.6 billion, per the full list Finance Minister François-Philippe Champagne published August 25. Goods already in transit on the effective date are exempt. The same day, the administration signed five additional Section 338 proclamations against Canada. Three revise product coverage effective September 15, 2026: the motor-vehicle basket adds structural steel and aluminum profiles and seating and now covers golf carts and sub-1,000cc cars for the first time, while dropping cement, refined lead, and salt; the alcohol basket adds 34 products including 23 cheese lines, while dropping bulk whisky and liqueur above four liters. The other two converted certain covered dairy, alcohol, and motor-vehicle goods from the existing 50% duty to an outright import ban effective September 29, 2026, citing Canada's continued discriminatory treatment even after the 50% duty took effect — with no USMCA exemption for the ban. A transition rule allowed goods imported, but not yet entered for consumption, before September 29 to remain under the existing 50% duty rather than the ban.
THE IMPORT BAN IS IN EFFECT as of September 29. For anything covered by the ban, this is a prohibition on entry, not a rate increase: there is no rate to pay, the goods cannot be entered. Reclassify Canadian-origin inventory against the revised annexes immediately and confirm your broker is applying the correct Chapter 99 headings for all entries filed on or after September 29.
CBP Is Offsetting IEEPA Refunds Against Disputed Debts — and Reportedly Reapplying Full Section 232 Rates
Multiple attorneys report that CBP is netting IEEPA refunds against debts the importer disputes or that have not been finally fixed, rather than paying the certified refund amount outright. Separately, practitioners say CBP is using the IEEPA refund process as an occasion to retroactively apply full Section 232 duty rates to some entries that had been receiving reduced or exempted treatment. Neither practice has been the subject of a formal CBP announcement, and we have found no update to either report as of October 7.
If your certified refund amount does not match what actually lands in your account, check for an offset notice before assuming a processing error. If you see Section 232 duties reapplied on entries you believed were exempted or reduced, flag it immediately — this may need to be challenged separately from your IEEPA refund claim.
Judge Eaton Pressed CBP Over Whether It Deleted Entry Information Tied to IEEPA Duties
On August 27, Judge Eaton asked the DOJ attorney handling the case whether the government intends to respond to his August 7 letter, which asked whether CBP has any protocol that could have resulted in the deletion of entry information belonging to importers who paid IEEPA duties. No substantive answer had been filed as of our last update, and we have found no further docket activity on this question as of October 7. In a related order the same week, the court rescheduled a separate conference on IEEPA duties imposed on international postal shipments to October 1 — that conference has now been held; watch the CIT docket for any resulting order from Judge Eaton.
This is an open question, not a confirmed finding. Watch the CIT docket for any order or statement from Judge Eaton following the October 1 postal conference. If your CAPE declaration references entries you believe CBP has on record, keep your own copies of entry summaries and supporting documentation independent of ACE — do not rely solely on CBP's system of record while this question is pending.
$132.5 Billion Accepted, $106.6 Billion Sent to Treasury — Superseded by Sept 11 CBP Update — Phase 3 Now Live
CBP's court-ordered progress report filed August 25 reported that as of 3:00 PM ET on August 21: approximately $132.5 billion in potential and certified refunds accepted for CAPE processing, of which roughly $106.6 billion in duties plus interest had been certified and sent to Treasury for disbursement. Volume had grown to approximately 26.4 million entries accepted for IEEPA duty removal. The ACH problem had continued to grow: approximately 22,170 refunds totaling about $1.7 billion could not be transmitted because banking information was missing. The same filing confirmed CAPE Phase 3 would launch on October 6, 2026 — which has now occurred. No newer CBP status report has surfaced as of October 7.
Enrol for ACH refunds in the ACE Portal under the ACH Refund Authorization tab if you have not already — the missing-banking-information backlog was still growing as of the last confirmed count. Phase 3 is now live; if you are a plaintiff in one of the roughly 3,700 court-assigned cases, your Phase 3 filing path is open.
Importers Challenge the Section 301 Forced-Labor Tariffs Themselves — A New Legal Front
Plaintiffs led by Learning Resources filed a motion for judgment on August 24 arguing that the Section 301 forced-labor tariffs — the duties on 60 economies that replaced Section 122 on July 24 — exceeded USTR's statutory authority because the agency did not make the country-specific findings the statute requires, and that the action violated the Administrative Procedure Act. This is a separate case from the IEEPA refund litigation and does not affect CAPE processing directly. We have found no ruling or further docket activity on this motion as of October 7.
This challenge targets duties you may be paying right now under Section 301, not past IEEPA duties. Importers with material Section 301 exposure should have trade counsel track this case separately from the IEEPA refund tracks above.
Section 338's 50% Canada Tariffs Took Effect August 22 — Escalated to Import Ban as of September 29
The Section 338 tariffs did not land on their original date. Hours before the August 19 effective date, the administration issued a proclamation delaying implementation three days to August 22, citing Canada's stated commitment to remove the discriminatory measures at issue. Negotiations then broke down on the evening of August 21: Canadian Prime Minister Mark Carney announced Canada was suspending talks, and confirmed Canada intended to respond with matching, dollar-for-dollar tariffs of its own (which took effect September 8, see above). With no agreement reached, the additional 50% ad valorem duty on certain Canadian-origin goods — covering roughly 554 eight-digit tariff lines across motor vehicles, alcoholic beverages, and dairy annexes, but reaching further into products like wine, cement, furniture, and hockey sticks — took effect at 12:01 AM ET on August 22, 2026. USMCA-qualifying goods are not exempt, the duty stacks on existing duties and fees, and Section 338 carries no statutory expiration date. That 50% duty escalated to an outright import ban on certain covered goods effective September 29.
Confirm your Canadian-origin goods against all three original annexes, plus the September 15 scope revisions and September 29 import-ban carve-outs described above. Confirm the correct Chapter 99 heading with your broker for every entry filed on or after August 22. For goods now subject to the ban: confirm your broker is applying the prohibition correctly to all entries filed on or after September 29.
Both Class Certification Arguments Have Been Heard — Neither Ruling Has Issued as of Oct 7
Oral argument on Terry Precision Cycling's class certification motion was heard August 6 in V.O.S. Selections. A second argument, on Freestyle World's motions to lift the stay and certify a class, was heard August 19. As of October 7 — roughly nine and eight weeks after argument, respectively — we still cannot confirm a ruling on either motion via the public docket. The government continues to oppose certification in both cases, arguing the motions are untimely and that individualized processing defeats class-wide relief.
With both arguments heard well over a month ago, rulings could land at any time. Certification remains contested and is not guaranteed in either case — do not plan around it. If you have finally liquidated entries and have not filed a CIT complaint, Phase 3 is now live — begin your free assessment now to confirm eligibility. The Tariff Bureau coordinates documentation preparation with your licensed customs broker or trade counsel.
DOJ's Opening Brief Has Been Filed — Importers' Response Brief Was Expected in September, Now Overdue as of October 7
The government's opening brief in its appeal of the CIT's universal refund order (V.O.S. Selections, Inc. v. Trump, Fed. Cir. No. 26-1895) has been filed. It argues that the CIT exceeded its authority by ordering universal relief for non-plaintiffs, citing Trump v. CASA, Inc., 606 U.S. ___ (2025) (No. 24A884), and that CBP lacks statutory authority to reliquidate finally liquidated entries without an importer-specific court order. Importers' response brief was expected in September 2026 — now overdue as of October 7 — with a ruling likely later this year. Appeal No. 2026-1898 was separately dismissed on July 28 (see below); Nos. 26-1895 (lead), -1897, and -1899 remain consolidated and live, with AGS Company Automotive Solutions having withdrawn from -1897 on August 24.
The response brief is past its expected date. When it is filed, it will set the clock for a reply brief and then the court will schedule oral argument or submit the case on the papers. Importers with finally liquidated entries and no filed CIT complaint remain the most exposed group regardless of how this appeal resolves; Phase 3 is now live — file rather than waiting on the appeal outcome.
Federal Circuit Dismisses Appeal No. 2026-1898 — the April 7 Injunction Is No Longer Under Appellate Challenge
On July 28, 2026, the Federal Circuit granted the government’s unopposed motion under FRAP 42(b)(2) to deconsolidate and voluntarily dismiss Appeal No. 2026-1898 — the appeal arising from the Euro-Notions case — with the mandate issuing the same day and each side bearing its own costs. The practical effect is that the CIT’s April 7 injunction, which established the CAPE refund process, is no longer under active appellate challenge. This is narrower than it sounds: Appeal Nos. 2026-1895 (lead), -1897 and -1899 remain consolidated and live — those target the refund order’s application to finally liquidated entries held by importers who never sued, and one participant (AGS Company Automotive Solutions) has since withdrawn from -1897 specifically.
The machinery of CAPE itself is on firmer ground — the order that built it is no longer being appealed. The fight that still matters to non-plaintiff importers with finally liquidated entries continues in the consolidated appeals (see the briefing update above). Phase 3 is now the open path for those importers.
How the Freestyle World Argument Got Its Date — DOJ's July 28 Opposition
On July 28, the Department of Justice filed its opposition to class certification in Freestyle World, Inc. v. United States (CIT No. 26-01088), arguing that the motion was untimely and that certifying a class of importers who paid IEEPA duties but never filed suit would be improper. Judge Eaton ordered oral argument on July 30, setting Freestyle World's motions to lift the stay and for class certification for August 19 — the argument covered in the update card above.
Section 122 Expired — Replaced Same-Day by New Section 301 Tariffs on 60 Economies (Now Under Legal Challenge)
The Section 122 global 10% tariff expired by statute at 12:01 AM EDT on July 24, 2026, its hard 150-day statutory limit. There was no gap: on July 23, the President signed a memorandum directing USTR to impose new Section 301 tariffs of 10% or 12.5% on imports from 60 economies — covering roughly 99.4% of all U.S. imports — based on forced-labor enforcement investigations USTR opened in March and concluded in June. As reported above, these duties are now themselves being challenged as exceeding USTR's statutory authority. Exempt: USMCA-qualifying Canadian and Mexican goods, CAFTA-DR textiles and apparel, goods already subject to Section 232, civil aircraft, pharmaceuticals, informational materials, donations, most Chapter 98, and 471 additional HTSUS subheadings USTR added after more than 1,600 public comments. Separately, Brazil received its own distinct 25% Section 301 tariff under HTSUS 9903.05.01, effective 12:01 AM ET July 22, from a different investigation entirely.
Do not assume these duties disappear soon — a legal challenge takes months to resolve. Confirm which of the 60 economies applies to your supply chain, check the exemption annexes, and recalculate your landed cost basis under the new Chapter 99 headings. If your goods are already subject to Section 232, confirm the exemption is being applied rather than assuming the duties stack.
CIT Orders CBP to Reliquidate Finally Liquidated Entries — But Only for the ~3,700 Filed Cases
On July 17, 2026, CIT Senior Judge Richard Eaton issued an order directing CBP to reliquidate, without regard to IEEPA duties, any and all entries that have been liquidated for more than 80 days and on which the plaintiffs made estimated IEEPA deposits. The order follows the transfer of more than 3,700 pending IEEPA cases to Judge Eaton’s docket, and explicitly supplies the legal authority CBP said in May it lacked. The order applies only to companies that already filed complaints at the CIT. It is a case-linked procedure, not the Phase 3 public opening: plaintiffs’ counsel must first supply importer of record identification numbers to CBP, which then accepts the resulting CAPE declarations. The lead case is now Freestyle World, Inc. v. United States (CIT No. 26-01088) after Euro-Notions voluntarily dismissed on July 16.
If you have finally liquidated entries and have not filed a CIT complaint, Phase 3 is now open to you — it launched October 6 and does not require a prior court filing. With both class certification arguments heard and rulings still pending, Phase 3 filing is the most direct available path. Begin your free assessment now.
$121.75 Billion Accepted, $86.3 Billion Sent to Treasury — Superseded by the August 25 Filing
In a July 13 status declaration to Judge Eaton, CBP Executive Director Brandon Lord reported that as of 3:00 PM EDT on July 10, 2026, approximately $121.75 billion in potential and certified refunds had been accepted for CAPE processing, and approximately $86.3 billion in refunds had been sent to Treasury for disbursement. The same filing noted 9,837 refunds remained untransmitted solely for missing ACH information.
These are July 10 figures, kept here for the trend line — see the August 25 filing above for the most recent confirmed numbers. If you have not enrolled for ACH, do it today before filing your Phase 3 declaration.
Refunds Have Reached Only 30% of Affected Entries — Concentrated in Large Importers
A Cato Institute analysis of CBP’s own court filings found that the $104.29 billion in refunds authorized as of June 29 covered only about 30% of all import entries on which IEEPA duties were paid, even though it represents roughly 60% of the total dollar value owed. In practice, the largest, highest-value entries have moved through CAPE fastest, while the much larger number of smaller-dollar entries, more likely held by small and mid-sized importers, remain in the queue.
If you are a smaller importer and your CAPE Declaration has been sitting in validation for weeks, this data suggests you are not alone — and the September 9 congressional letter above suggests the gap has not closed. Phase 3 rolling processing means earlier filing correlates with earlier processing.
How the Class Certification Fight Started — a Rule 23(b)(2) Motion Filed in June
On June 4, 2026, plaintiffs in V.O.S. Selections — represented by counsel from the original Supreme Court litigation, including the Liberty Justice Center and appellate attorney Neal Katyal — moved to certify a mandatory class under Rule 23(b)(2) covering all importers whose IEEPA refund claims remain ineligible for CAPE processing. If certified, class members could recover without each filing a separate CIT lawsuit. A parallel motion is pending in Freestyle World. The government opposes both, and both have now been argued (see above), with rulings still pending as of October 7.
Warehouse Entries (Types 21/22) Came Off CAPE July 7 — File Withdrawals Instead
Effective July 7, 2026 per CSMS #69127837, warehouse entries (Entry Types 21 and 22) are no longer accepted on a CAPE Declaration. Warehouse withdrawals (Entry Types 31, 32, 34, and 38) continue to be accepted, with refunds processed upon (re)liquidation of the associated warehouse entry. Warehouse entries accepted on a CAPE Declaration between April 20 and July 6 without a corresponding withdrawal submission will not be (re)liquidated with an IEEPA refund.
If you operate bonded warehouses or filed Type 21/22 entries on CAPE before July 7, audit your declarations now and refile on the withdrawals before your refund stalls. Flag warehouse activity in your free assessment.
CAPE Phase 2 Launched — 2.8 Million Entries, $28.7 Billion in Scope
CAPE Phase 2 went live on June 29, 2026. Phase 2 covers reconciliation-flagged entries (types 01, 02, 06) that have not yet had a Type 09 reconciliation filing — but only where the entry is unliquidated or liquidated within 80 days of the CAPE declaration filing date. CBP’s Executive Assistant Commissioner for Trade, Susan Thomas, estimated Phase 2 covers approximately 2.8 million entries and $28.7 billion in potential refunds. Reconciliation entries filed before roughly May 31, 2025 on a standard 314-day liquidation cycle will generally have liquidated more than 80 days ago and fall outside Phase 2’s scope — those entries are now eligible under Phase 3. AD/CVD-flagged entries were not included in the June 29 deployment and remain pending further CBP guidance.
If you have reconciliation entries from the earliest months of the IEEPA tariff period, do not assume Phase 2 covers them — confirm your liquidation dates. If they fall outside Phase 2's 80-day window, they may be eligible under Phase 3, which is now live. Start at tariffbureau.com/assessment for a free eligibility screening.
Commissioner Scott Does Not Testify — Government Seeks Mandamus, CBP Discloses Phase 2/3 Scope
Judge Eaton’s Order to Show Cause hearing on June 9 ended without the CIT lifting its stay of the universal refund order. CBP Commissioner Rodney Scott did not testify in person; the government instead filed a petition for a writ of mandamus at the Federal Circuit, which it withdrew the same day. The hearing produced two key disclosures: CAPE Phase 2 was confirmed for a June 29 launch, and Phase 3 was confirmed for late July — but limited to importers who have filed suit at the CIT. That late-July target passed, and Phase 3 has now launched on October 6, 2026 per the Lord Declaration — open to all importers with finally liquidated entries, not just those who filed suit.
The government contested both the scope of the refund order and the procedural mechanics of enforcing it throughout this process. Phase 3 is now the open, confirmed path for importers without a filed CIT complaint.
DOJ Appeals CIT’s Universal Refund Order — Opening Brief Now Confirmed Filed
The Department of Justice filed notices of appeal of the CIT’s universal IEEPA refund order at the Federal Circuit in early June 2026, consolidated under the lead case V.O.S. Selections, Inc. v. Trump, No. 2026-1895. The appeal targets the order’s application to finally liquidated entries for importers who never filed suit at the CIT. The government has indicated it may seek to retain an estimated $30 billion or more in IEEPA tariffs collected on those entries if its position prevails; plaintiffs’ counsel has separately put the duties held by non-plaintiff importers at roughly $11 billion. Appellants’ opening brief has been confirmed filed; Appeal No. 2026-1898 was dismissed on July 28, while Nos. 2026-1895, -1897 and -1899 remain consolidated, with AGS Company Automotive Solutions having withdrawn from -1897.
Importers who have not filed suit at the CIT and hold finally liquidated entries face the most exposure from this appeal — but Phase 3 is now live and open to them. File a protest under 19 U.S.C. §1514 where the 180-day window is still open, and begin your Phase 3 assessment now. The Tariff Bureau prepares documentation for these tracks and coordinates with your licensed customs broker or trade counsel of record.
CBP Reverses on Finally Liquidated Entries — Asserts It Lacks Authority Without Importer-Specific Orders
In a May 29 motion, CBP asserted for the first time that it lacks authority to reliquidate entries past the statutory reliquidation window without importer-specific court orders. This directly contradicted CBP’s own published IEEPA FAQ, which had promised broader Phase 2 coverage. Judge Eaton denied CBP’s motion to amend and ordered Commissioner Scott to appear June 9 (later superseded by the government’s mandamus petition, which the government itself withdrew on June 9). The July 17 order supplied exactly the authority CBP said it lacked — but only for importers who filed suit. Phase 3, now live as of October 6, extends that path to all importers with finally liquidated entries.
If your entries include any finally liquidated entries (generally 80+ days past liquidation), Phase 3 is now live — begin your assessment immediately. File a CIT complaint through trade counsel for additional protective coverage. The Tariff Bureau coordinates documentation preparation for this referral.
$90 Billion Accepted, $23 Billion Sent to Treasury — Phase 1 ACH Refunds Actively Hitting Accounts
CBP confirmed to the CIT that it was processing approximately $90 billion in IEEPA refunds accepted for processing — with approximately $23 billion completed and sent to Treasury. Phase 1 ACH payments began May 12. Interest under 19 U.S.C. §1505 continues to accrue, at an estimated $650 million per month industry-wide.
Log into ACE and run the ES-022 report to check your CAPE declaration status, entry validation, and ACH payment tracking.
Cato Corporation Q1 Profit Triples — Directly Credits IEEPA Refund
Cato Corp (NYSE: CATO) reported Q1 2026 net income of $9.3 million vs. $3.3 million a year ago — a 3x increase management explicitly attributed to the company’s IEEPA refund claim. EPS came in at $0.47 vs. $0.17. It validates The Tariff Bureau’s core thesis: every eligible importer should be filing, not waiting.
CIT Ruled Section 122 Global 10% Tariff Unlawful — Relief Limited to Three Plaintiffs, Stayed on Appeal
On May 7, 2026, a divided CIT panel (2-1) held that the 10% global Section 122 tariff imposed via Proclamation 11012, effective February 24, 2026, exceeded the President’s authority. But the injunction and refund order applied only to the three plaintiff importers (Burlap & Barrel, Basic Fun, and the State of Washington). Section 122 expired by statute on July 24, 2026, making the appeal largely moot for ongoing collection — but the ruling remains relevant precedent for refund claims on duties collected during the 150-day window.
No refund path is open yet for non-plaintiff importers — but the ruling is strong precedent. Document every Section 122 duty payment, consider post-summary corrections on unliquidated entries, and calendar protest deadlines.
Tariff Refund Act of 2026 (S.3905) — Legislative Backstop Independent of the Appeal
Senate bill S.3905, co-sponsored by Senator Hickenlooper (CO) and a bipartisan coalition, would require CBP to refund all IEEPA duties within 180 days of enactment with statutory interest — and create a priority queue for small businesses. This legislation would function as a backstop independent of the Federal Circuit appeal. The bill has not been enacted; treat it as a possible backstop, not a plan.
30% Error Rate in CAPE Filings — CBP Declares 2026 “Year of the Audit”
Gaia Dynamics analyzed over 300,000 IEEPA entry line items and found a 30% discrepancy rate in CAPE submissions. Common errors: wrong Chapter 99 HTS codes, entries not enrolled for ACH, CSV formatting errors, and mixing non-IEEPA entries into the declaration file. CBP has designated 2026 as “The Year of the Audit.” A rejected declaration does not just delay your refund — it can trigger a full compliance audit of your import history. That audit posture now extends beyond CAPE filings to IOR registration itself, per the September 18 Form 5106 enforcement above.
Section 301, 232 and Now 338 Anchor U.S. Tariff Architecture — and All Three Now Face Legal Challenges
The post-IEEPA tariff landscape is organized around three standing authorities: Section 232 as the national security tool, Section 301 as the country and policy unfair-trade tool, and now Section 338 as a discrimination-offset tool used against Canada. Section 122 expired by statute on July 24, 2026 and was immediately replaced by the Section 301 forced-labor tariffs on 60 economies — now themselves under challenge (see above). On the metals side, Section 232 duties on steel and aluminum have been 50% since June 2025 (copper joined at 50% in August 2025), and since April 6, 2026 they apply to the full customs value of covered articles, with 25% on many derivative articles and a temporarily reduced 15% on certain industrial and electrical grid equipment through 2027. Section 338 duties of 50% on certain Canadian goods took effect August 22 after a 3-day delay and collapsed talks, and have since escalated further: Canada's own retaliation took effect September 8, and an outright import ban on certain covered goods took effect September 29, 2026.
Tariffs are permanent, contested, and multiplying. Importers need ongoing classification analysis, supply chain rerouting advisory, and Section 301/232/338 exposure monitoring — not just a one-time IEEPA refund claim.
The Tariff Bureau • CAPE Phases 1, 2 & 3 — All Live
Phase 3 Is Live — File Now
CAPE Phases 1, 2, and 3 are all open. $122 billion has already been disbursed by CBP, and Phase 3 — now live as of October 6, 2026 — covers finally liquidated entries for the first time. Phase 3 does not require a prior court filing for eligibility. With both class-certification arguments heard weeks ago and rulings possible at any time, the window to confirm your position is now. Start your free assessment — The Tariff Bureau handles eligibility screening, documentation, and preparation, and coordinates filing with a licensed customs broker.
Free Assessment → 📞 (404) 882-5839Mon–Fri 9am–6pm ET • hello@tariffbureau.com • Advisory only — not legal advice. The Tariff Bureau LLC is not a law firm. CAPE claim coordination handled with or through a licensed customs broker. The Tariff Bureau LLC is not itself a licensed customs broker.