U.S. Customs and Border Protection (CBP) activated the first phase of the Consolidated Administration and Processing of Entries (CAPE) tool on Monday.
Integrated into the Automated Commercial Environment (ACE) Secure Data Portal, the CAPE system is designed to streamline the massive undertaking of refunding billions in duties and interest to the trade community.
The launch of CAPE follows a landmark Supreme Court decision in February that invalidated “Liberation Day” tariffs previously imposed under the International Emergency Economic Powers Act (IEEPA).
The ruling determined that the law did not authorize such duties, paving the way for importers to reclaim $166 billion.
By utilizing CAPE, CBP aims to avoid the estimated 4.4 million man-hours required for manual processing. Key features of the new system include:
- Consolidated Processing: Refunds are processed collectively rather than on a traditional entry-by-entry basis.
- Electronic Filing: Importers and authorized customs brokers can now file CAPE Declarations directly through their ACE Portal accounts.
- Included Interest: The system is designed to consolidate refunds of IEEPA duties including applicable interest.
The initial rollout is expected to handle roughly $127 billion in refunds, covering approximately 82% of eligible entries for over 56,000 registered importers. For this first phase, eligibility is limited to certain unliquidated entries and entries within 80 days of liquidation.
While Phase 1 focuses on automated electronic payments, more complex claims—including a $2.9 billion subset of certain tariffs—will be addressed in later updates or through manual processing.
Despite the system’s launch, experts warn of potential hurdles. Treasury Secretary Scott Bessent has noted that tariffs could potentially return as early as July under different authorities.
Additionally, historical precedents suggest that while the electronic system is a significant step forward, the full payout of such a massive sum could stretch beyond current projections due to ongoing legal and political uncertainties.
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