Overview
In a July 21, 2026 order, US Court of International Trade (CIT) Judge Richard K. Eaton instructed US Customs and Border Protection (CBP) to reliquidate both "finally liquidated" entries and entries that may become final while being processed by CBP's Consolidated Administration and Processing of Entries (CAPE) platform, which provides refunds of tariffs unlawfully collected under the International Emergency Economic Powers Act (IEEPA). At the same time, the authority of the CIT to order liquidation for non-plaintiff importers remains on appeal at the US Court of Appeals for the Federal Circuit (Federal Circuit).
Background
Following the US Supreme Court's February 2026 decision invalidating the Trump administration's IEEPA tariffs, the CIT issued a series of refund-related orders directing CBP to return unlawfully collected duties. Specifically, the CIT entered an injunction on April 17, 2026 ordering CBP to refund IEEPA duties for (1) unliquidated entries; (2) liquidated entries for which liquidation is not final; and (3) any liquidated entries for which liquidation is final, i.e., entries that had been liquidated for a period longer than the ordinary protest and reliquidation periods.
To facilitate refunds, CBP developed the CAPE system, which has gradually expanded to cover different categories of entries. According to updates provided by CBP to the court, as of July 10, 2026, CBP has already processed approximately $121.75 billion in anticipated refunds and approximately $86.3 billion in refunds have been sent to the US Department of Treasury for disbursement.
Although CBP has been able to refund unliquidated entries and liquidated entries for which liquidation is not final with less administrative burden, "finally liquidated" entries have remained a key unresolved issue. The government has consistently argued to the CIT that: (1) for "finally liquidated" entries, where importers have filed cases at the CIT, CBP does not have the authority to reliquidate these entries without a court order, and (2) that the proper relief must be addressed through importer-specific judicial orders requiring reliquidation.
Additionally, the government has appealed certain aspects of Judge Eaton's refund orders, arguing that the CIT lacks authority to require refunds for importers who did not file lawsuits, only with respect to "finally liquidated" entries, arguing that the April 17 injunction exceeds the CIT's jurisdiction and equitable authority under the US Supreme Court's ruling in Trump v. CASA, Inc., which had otherwise banned universal injunctions.
Judge Eaton's July 21 Order
In response to the government's argument that a specific court order is required before CBP can reliquidate "finally liquidated" entries, Judge Eaton's order, released to the public on July 21, 2026, expressly ordered CBP to reliquidate, without regard to IEEPA duties, all plaintiffs' entries that have been liquidated for more than 80 days. Through this order, the CIT provided relief in the over 3,700 IEEPA refund cases pending before the CIT.
To seek a refund for "finally liquidated" entries in CBP's CAPE refund platform, importer-plaintiffs must provide certain information to CBP, including their importer-of-record identification information and then submit CAPE declarations in accordance with instructions that CBP will provide through counsel. The CIT explained that "{p}laintiffs need not take any further action in order to receive these instructions." Once those declarations are accepted, CBP was directed to reliquidate the covered entries and process refunds.
Finally, the court stopped short of entering final judgments. Instead, Judge Eaton issued an order and left the 3,700 IEEPA refund cases stayed, recognizing that some importers may encounter issues obtaining full refunds and may need to return to the court for additional relief. The order also anticipates that many importer-plaintiffs will voluntarily dismiss their actions after receiving complete refunds through CAPE.
Interaction with the Government's Appeal
Judge Eaton's July 21 order arrives while the government's appeal of the CIT's broader refund orders remains pending before the Federal Circuit. The government has appealed the CIT's authority to order refunds on a universal basis, particularly with respect to "finally liquidated" entries belonging to importers who have not filed a complaint at the CIT. The government's opening brief is currently due August 3, and the importers' response brief will be due in September.
The appeal raises questions regarding the scope of the CIT's remedial authority and whether relief may extend beyond litigants before the court. Those issues remain unresolved, and the Federal Circuit's ultimate decision could have important implications for importers that have not filed lawsuits.
Additional Procedural Developments
An additional order from Judge Eaton, issued on July 15, identified a new lead case for managing the consolidated IEEPA refund litigation after the plaintiff in Euro-Notions voluntarily dismissed its case. The court selected Freestyle World Inc. v. United States as the new lead case. The order further noted the possibility of upcoming Rule 23 class action certification proceedings at the CIT.
The potential use of a class-action mechanism is noteworthy because it could provide another path for addressing refunds associated with "finally liquidated" entries, by parties who have not yet filed complaints at the CIT. However, the court has not yet ruled on certification, and the scope of any potential class remains uncertain. Importantly, if the Federal Circuit holds that the CIT does not have authority to issue refunds for non-litigants, the pursuit of a class-action could provide a fallback approach for importers that potentially would not be subject to the ban on universal injunctions.
Looking Ahead
These updates have led to three major developments and items to monitor for importers:
- For importers with pending CIT cases, the order provides the authority that, according to the government, was missing and necessary to refund "finally liquidated" entries. Therefore, Judge Eaton's order has reduced uncertainty for litigating importers seeking recovery of IEEPA duties, requiring importers to monitor the rollout of additional CAPE phases and forthcoming court directives.
- For non-litigants, uncertainty remains, particularly given the ongoing Federal Circuit appeal and the unresolved question of whether relief ultimately will extend beyond parties currently before the court.
- In light of Judge Eaton's order on July 21, importers should consider filing a complaint at the CIT to potentially receive a refund in the timeliest manner.
- The government's appeal could become moot depending on the CIT's handling of importers' class certification requests. Although the government has argued that there is a bar on universal injunctions, it's possible that relief provided to a certified class could provide the intended refunds to non-litigant importers.
Importers are encouraged to evaluate potential IEEPA duty refund opportunities in response to Judge Eaton's July 21 order. Steptoe's International Trade team is closely monitoring the refund process. If you need support evaluating what these developments mean for your business, or support with filing a CIT complaint or CBP protest, our team is ready to help.
