CBP To Roll Out Phase 2 Of Tariff Refunds With Phase 3 Following Closely, But Questions Remain For Refund Eligibility Of Fully Liquidated Entries

U.S. Customs and Border Protection (CBP) announced on June 23, 2026, that it would begin Phase 2 of IEEPA tariff refunds for reconciliation entries – that is, entries for which final, correct information is provided at a later date – under its Consolidated Administration and Processing of Entries (CAPE) system as of June 29, 2026. This latest announcement adds a limited group of claims to the categories of entries for which companies can currently seek refunds. As noted in our previous alerts on this topic, Phase 1 included refunds for certain unliquidated entries and certain entries within 80 days of liquidation.

Under Phase 2, entries flagged for reconciliation, including type 01: Free and dutiable formal consumption entries; type 02: Quota/Visa consumption entries; and type 06: Foreign Trade Zone consumption entries, will now be accepted for refunds through the CAPE system so long as the following two conditions are met: (1) the corresponding reconciliation entry (type 09) has not been filed and (2) the entries are unliquidated or within 80 days of liquidation.

Phase 3 was also discussed during a recent hearing at the Court of International Trade (CIT). CBP’s Executive Assistant Commissioner for Trade, Susan Thomas, indicated that Phase 3 would cover finally liquidated entries for which an individual claim has been filed in the CIT as a formal legal complaint. Questions remain about further limitations on refunds for finally liquidated entries in light of the government’s recent appeal, in which it challenged both the CIT’s and its own authority to grant refunds for entries that have been fully liquidated or are within a time period 80 days after final liquidation (see previous alert). Phase 3 is expected to deploy sometime in late July.

The CBP update generally applies to a small subset of entries, but companies should nevertheless review the status of any entries to determine whether any fall within this category. The bigger issue remains what will happen with entries that have been liquidated for more than 80 days. The government’s new position on these entries raises concerns that will only be resolved on appeal, and in the meantime, the government is taking the position that to preserve their rights, companies seeking refunds of fully liquidated (plus 80 days) entries need to file individual claims in the CIT.