On May 27, 2026, following a closed-door conference in Euro-Notions Florida v. United States (CIT # 25-00595) (“Euro-Notions”), Judge Eaton issued two (2) orders which will require U.S. Customs and Border Protection (“CBP”) to explain the Government’s position on issuing IEEPA refunds for all entries, including those that have liquidated beyond the statutory reliquidation period of 90 days.
In the first order issued in Euro-Notions, the Court discussed the progress of CBP’s Consolidated Administration and Processing of Entries (CAPE) program, which began on April 20, 2026, and expressed concern that the government has not yet proposed a solution for entries that were not part of the Phase 1 process and were either finally liquidated or otherwise not eligible for Phase 1 of CAPE.
In a declaration filed with the CIT on May 26, 2026, Brandon Lord, the Executive Director of Trade Programs Directorate in CBP’s Office of Trade claimed that approximately $85 billion in anticipated IEEPA duty refunds had been accepted for processing in CAPE. While recognizing the issuance of refunds, the Court noted that importers continued to face challenges, particularly for entries with claims under Heading 9817 of the Harmonized Tariff Schedule of the United States (“HTSUS”). Importantly, the Court expressed particular concern about millions of informal entries where liquidation occurred simultaneously or nearly simultaneously with the entry, making the liquidation final well before CAPE Phase 1 was implemented. The Court has directed CBP to file a short report on CAPE’s progress by June 10, 2026, and scheduled a closed settlement conference for June 11, 2026.
The second order was issued in V.O.S. Selections, Inc. v. United States (CIT # 25-00066) (“V.O.S. Selections”), where Judge Eaton lifted the stay on the case on the Court’s own initiative and ordered the parties to show cause as to why the Court should not remove the suspension of immediate compliance in accordance with its prior order. This Court’s prior order required CBP to liquidate or reliquidate all entries subject to IEEPA duties without regard to those duties.
By removing the suspension of immediate compliance, the Court would address the issue of providing refunds to those importers that have paid IEEPA duties on entries that are finally liquidated and therefore not eligible for refunds under the CAPE Phase 1 process. The Government has previously indicated that it would provide refunds only to those importers who have filed complaints in the CIT, and where a court order directs the refund. However, the Court’s order in V.O.S. Selections directs refunds for all importers who have paid IEEPA duties on entries, including those whose liquidations have become final, whether the importer has brought a suit or not.
The Court directed the parties to submit briefs in response to the order to show cause by 4:00 p.m. on June 4, 2026. An in-person hearing on the order is scheduled for June 9, 2026, at 1:30 p.m. And in an unusual move, the Court has ordered in person attendance of CBP Commissioner Rodney S. Scott at the hearing, indicating the Commissioner must be prepared to answer questions about the anticipated timing of CBP’s compliance with the Court’s order.
The Husch Blackwell International Trade and Supply Chain team is continuing to monitor developments in the IEEPA litigation and will provide updates as they become available. If you have any questions or concerns, please contact your Husch Blackwell attorney.