April Newsletter | Court Orders Refunds. Importers Must File Claims.
TOP NEWS:
IEEPA Tariff Refund Update: What Importers Need to Know Now
The U.S. Court of International Trade (CIT) ordered refunds of IEEPA tariffs (including reciprocal tariffs) following the Supreme Court ruling that those tariffs were unlawful. The court has paused immediate refunds when CBP demonstrated that its systems could not handle the volume—over $165 billion across ~53 million entries.
Currently, CBP is developing a new automated refund system called CAPE (Consolidated Administration and Processing of Entries) within ACE. The system includes four components: a claim portal, mass processing engine, review/liquidation module, and refund module. As of late March 2026, development progress ranged roughly from 45% to 80%, with the refund function about 60–63% complete and undergoing testing.
Recent court updates have expanded the scope of eligible entries—including some previously finalized entries—but refunds remain suspended until CAPE is operational. Importers will need to submit claims (not automatic refunds), and payment will be issued electronically after validation, liquidation/reliquidation, and interest calculation. Timing remains uncertain and dependent on system readiness, with further CBP updates required by the court.
MORE TARIFF NEWS:
Steel, Chips, Solar, and Autos: America's Next Trade Fight Is Here
In 2026, the United States launches a new Section 301 investigation, sounding the alarm over a growing global imbalance: too much production, too much subsidy, and too little fair competition. Policymakers argue that some countries are fueling excess manufacturing—propping up industries, distorting supply and demand, and generating large trade surpluses that squeeze U.S. producers out of key markets.
The investigation spans 16 economies across Asia, Europe, and beyond, reflecting how widespread the issue has become. At the center are critical industries that shape the future of the global economy—steel and aluminum, automobiles, semiconductors, batteries, solar modules, and advanced machinery like robotics and shipbuilding.
As the process unfolds, public hearings begin in May 2026, opening the door to potential actions. Negotiations may ease tensions—or escalate them. Trade remedies and new tariffs loom as real possibilities.
What’s at stake is bigger than a single dispute. The outcome could reshape global supply chains, raise tariffs, spark trade conflicts, and intensify pressure on U.S. manufacturing. In short, this investigation isn’t just about trade policy—it’s about who leads in the industries of tomorrow.
Your Tech Platform Can't Do This. Only a Licensed Broker Can.
CBP recently issued a ruling as to whether a foreign, unlicensed company operating an online platform for importers was impermissibly conducting “customs business” under 19 U.S.C. § 1641 and Part 111 CBP Regulations. Specifically, CBP evaluated four services:
- connecting importers with licensed brokers,
- using OCR tools to extract entry data from documents,
- providing AI-generated HTSUS classification suggestions, and
- submitting CBP Form 5106 on behalf of importers.
CBP held that not all platform activities constitute customs business, but several do. Merely connecting importers with brokers and transmitting data is permissible if the company does not participate in decision-making. However, CBP determined that the company impermissibly conducted customs business when it:
- Used OCR tools to identify and prepare entry data,
- Provided HTSUS classifications beyond the six-digit level tied to actual imports, and
- Completed and submitted CBP Form 5106 for importers.
This ruling draws a clear boundary: technology platforms may facilitate communication and data transfer, but cannot perform or influence core customs functions reserved for licensed brokers. Activities involving data determination, classification tied to entry, or preparation/submission of CBP forms require a broker’s license, regardless of automation or AI involvement. This is confirmation from CBP that it is critically important that all companies use an
experienced and reputable licensed customs broker when conducting business with CBP.
ITM is paying very close attention to all of these developments and will continue to relay information as it becomes available.
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