October Newsletter | CAPE Phase 3 Launches October 6th

TOP NEWS: 

CBP sets October 6 launch for CAPE Phase 3 refunds

CBP has officially set October 6, 2026, as the rollout date for Phase 3 of the Consolidated Administration and Processing of Entries (CAPE) system. In a declaration submitted to the Court of International Trade (CIT) on September 15, CBP confirmed that this phase will finally open up automated refund pathways for finally liquidated entries.

Unlike earlier phases that targeted unliquidated or reconciliation entries, Phase 3 is specifically limited to importers who are active plaintiffs in individual CIT lawsuits and have obtained a court-ordered reliquidation.

What you need to know:

• Filing Window: Eligible plaintiffs who submitted a valid Importer of Record (IOR) number to CBP by the July 30, 2026 deadline can begin submitting CAPE declarations on October 6.
• Late Submissions: If you submitted your IOR after July 30, CBP will release separate, additional processing instructions.
• Massive Recovery Progress: To date, the CAPE system has processed over 286,000 declarations across 27 million entries, with the U.S. Treasury already certifying more than $122 billion in duty refunds and statutory interest.
  

SECTION 301 EXCLUSIONS: ACE FIX

CBP activates ACE fix for Section 301 China exclusions, unlocking retroactive refunds

CBP has issued critical trade guidance regarding conforming amendments to four Section 301 China product exclusions under HTSUS 9903.88.69. To align with the updated 10-digit statistical reporting categories that took effect on July 1, 2026, the Office of the U.S. Trade Representative (USTR) modified the legal language for specific pump parts and plastic articles to transition them seamlessly into their new HTSUS codes.

From a compliance perspective, the critical update is that the ACE system functionality to accept these amended codes officially went live on September 23, 2026, allowing filers to properly submit entries without triggering system rejections.

For duty drawback claimants and compliance managers, this update provides an immediate pathway to recover retroactively paid tariffs. Importers who brought in qualifying goods between July 1 and September 22, 2026, and paid full Section 301 duties, should now take action. Companies can file a Post Summary Correction (PSC) to claim a direct refund of those duties. If an entry has already progressed past the standard PSC filing timeframe, the liquidation can still be actively protested if it remains within the legal protest window.

Trade compliance teams are advised to immediately audit their import data from this summer to flag newly eligible entries and coordinate with their brokers or service providers to secure these refunds.

DRAWBACK & EXPORT DATA

CBP launches truck export manifest pilot, tightening proof of export for drawback

CBP has officially launched a voluntary, two-year pilot program testing the ACE Electronic Export Manifest (EEM) for Truck Cargo. The test evaluates the feasibility of a strict new timeline for truck carriers, requiring them to electronically submit limited export data at least 24 hours prior to departure from the U.S., followed by a complete manifest filing no later than two hours before arriving at the final port of export.

For the duty drawback community, this pilot signals a major shift toward tighter, fully digitized export tracking. Because proof of export is the foundational requirement for any successful duty drawback claim, automated manifest systems like this will ultimately make verifying overland exports to Canada and Mexico much cleaner. Currently, participation is strictly limited to nine selected truck carriers with EDI or ACE Trade Portal capabilities.

While this is a limited test for now, compliance teams should watch this space closely—widespread adoption of automated export manifests will eventually streamline the data matching required to secure your overland drawback refunds.