Code vs. Cash: Inside CBP’s Scramble to Automate the Largest Trade Refund in History

In the matter of Atmus Filtration, Inc. v. United States (Case 1:26-cv-01259-RKE), the U.S. Court of International Trade (CIT) and U.S. Customs and Border Protection (CBP) have reached a critical phase regarding the refund of tariffs following a Supreme Court ruling.

The following updates are based on the latest filings from the CIT docket and official declarations from CBP leadership as of March 14, 2026.

Current Status: Refund Mandate & Implementation

Following the Supreme Court’s decision in Learning Resources, Inc. v. Trump, which ruled certain IEEPA (International Emergency Economic Powers Act) tariffs unconstitutional, the CIT has issued an order requiring CBP to refund paid duties with interest.

1. The CIT Refund Order (March 4, 2026)

Judge Richard K. Eaton issued a landmark order directing CBP to:

• Liquidate all unliquidated entries that were subject to IEEPA duties without regard to those duties.

• Reliquidate any liquidated entries that are not yet final to remove the IEEPA tariff burden.

• Issue refunds for all funds paid under the unconstitutional Executive Orders, plus interest at the legal rate.

2. CBP’s Response and System Development (March 12, 2026)

In a declaration by Brandon Lord, Executive Director of Trade Programs at CBP, the agency reported that it is developing a specialized system called CAPE (CBP Automated Processing for E-refunds) within the Automated Commercial Environment (ACE).

Key metrics reported by CBP:

• Scope: Over 53 million entries have been affected, involving approximately $166 billion in collected duties.

• Interest: Interest is accumulating at an estimated $650 million per month.

• Readiness: As of March 11, the Claim Portal component is 70% complete, and the Refund component is 60% complete.

3. Judicial Pause and Reporting Requirements

The CIT has temporarily paused the requirement for "immediate compliance" by CBP to allow the agency time to make the CAPE refund process operational. However, the court is maintaining strict oversight:

• Next Deadline: CBP is ordered to file a progress report by 2:00 p.m. EDT on Thursday, March 19, 2026.

• Electronic Refunds: The court noted that refunds can be expedited for importers who have opted into CBP’s electronic refund process as per the Interim Final Rule published in January 2026. Information on the Final Rule can be found here: https://tinyurl.com/ACHREFUNDSGRF

Key Takeaways for Importers

Feature	Status/Detail
Total Impact	~20.1 million unliquidated entries currently pending.
Refund Method	Importers will likely need to submit a "CAPE Declaration" via a new tab in the ACE Portal.
Required Action	CBP recommends importers ensure they are set up for electronic refunds to avoid delays in receiving payments.

Skip the technical hurdles of the ACE Portal. Ensure your electronic refund enrollment is handled correctly and efficiently by letting our experts guide you through the process. Simply email customs@grf-chb.com and we’ll take it from there.