CAPE Phase 1 Refunds: What NVOCCs Should Tell Their Importer Clients Now

CBP launched CAPE Phase 1 on April 20, 2026, according to Diaz Trade Law reporting. The process allows certain importers of record to request refunds of IEEPA duties through a CAPE Declaration filed in ACE — but eligibility criteria, process steps, and refund timing may change. Confirm current CBP guidance before relying on this content. Here's what NVOCCs and freight forwarders need to understand about the process.

This article discusses CAPE Phase 1 and IEEPA duty refund procedures based on Diaz Trade Law reporting and CBP-related guidance available as of May 1, 2026. CAPE eligibility, deadlines, process steps, refund timing, and CBP review practices may change. Importers and brokers should confirm current CBP guidance before relying on this process.

According to Diaz Trade Law reporting, CBP launched Phase 1 of the Consolidated Administration and Processing of Entries (CAPE) on April 20, 2026. Under CAPE Phase 1, importers of record (IORs) and licensed customs brokers may file CAPE Declarations through ACE for eligible entries where IEEPA duties were paid. The process is not automatic — it requires identifying eligible entries, confirming proper account setup, and working through a licensed customs broker.

For NVOCCs and freight forwarders, your importer clients are likely going to ask about this. Being prepared with accurate, practical information — and knowing when to involve the customs broker — is one of the most useful things you can do.

CAPE Phase 1 refunds are real — but they are not automatic and not simple. Each entry must be reviewed for eligibility, the importer must have ACE access and ACH refund setup in place, and a licensed customs broker must prepare and submit the CAPE Declaration. Moving without confirming all of these creates delays or blocks the refund entirely.

Have importer clients asking about CAPE refunds? A short process review can help identify potentially qualifying entries, confirm current eligibility criteria, and coordinate what needs to be in place before filing.

What Is CAPE Phase 1?

CAPE stands for Consolidated Administration and Processing of Entries — CBP's refund mechanism for certain IEEPA (International Emergency Economic Powers Act) duties. According to Diaz Trade Law's IEEPA refund update, CAPE Phase 1 covers unliquidated entries and liquidated entries within 80 days of liquidation. Importers of record who paid IEEPA duties on qualifying entries may be eligible to request refunds. The refund process, as described by Diaz, involves:

• Identifying entries where IEEPA duties may have been collected, subject to Phase 1 eligibility criteria
• Submitting the CAPE Declaration as a CSV file through CAPE in ACE — the IOR and licensed customs broker must both have ACE accounts, and ACH refund setup must be completed in ACE
• CBP review and validation — after a declaration is processed and validated, ACE liquidates or reliquidates the entries by removing IEEPA HTS codes, subject to CBP compliance review
• Refund issued to the IOR's bank account recorded in ACE, or to a party the IOR has designated via CBP Form 4811

This should be reviewed carefully before filing. Not all entries will qualify, eligibility criteria apply, and submitting incomplete or inaccurate declarations can delay or block refunds. Working with a licensed customs broker before filing is strongly recommended.

Why NVOCCs and Forwarders Should Pay Attention

The importer of record receives any refund — not the NVOCC or forwarder. But as the operational partner closest to many importer clients, you may be the first point of contact when they hear about CAPE and start asking questions.

NVOCCs and forwarders can add real value without overstepping. The right role is to help clients understand what the process involves, gather the shipment and entry information they'll need, and connect them with the right customs broker to handle the filing side. Do not guess on eligibility or promise refunds — the facts of each entry matter.

Step-by-Step: How the CAPE Refund Process Works

1. Identify entries where IEEPA duties may have been paid — pull entry records for the relevant period.
2. Compile the entry numbers and related shipment documentation.
3. Review whether the entries may qualify under the CAPE Phase 1 criteria.
4. Confirm the importer has active ACE account access and has completed ACH refund setup in ACE.
5. Coordinate with the customs broker to prepare and submit the CAPE Declaration.
6. Monitor the CBP review process and refund status through ACE.

Every step matters. Missing documentation, an unconfigured ACH account, or an ineligible entry can stall the entire process. Starting with a complete picture of the shipment records is essential.

Common Mistakes That Can Delay or Block Refunds

Most CAPE refund problems are preventable. The issues we see most often are:

• Missing entry numbers — all entries must be listed accurately in the CAPE Declaration
• No ACH refund setup in ACE — CBP cannot issue the refund without it
• Multiple customs brokers involved without coordination — creates gaps in who files what
• Assuming refunds are automatic — they are not; each entry must be reviewed and filed
• Submitting before eligibility is confirmed — can result in a rejected or delayed declaration
• Including late or ineligible entries — strict deadlines and eligibility criteria apply

Who Does What?

Understanding each party's role prevents confusion and ensures nothing falls through the cracks.

Importer

Owns eligibility, controls the ACE account and ACH refund setup, and receives the refund. According to Diaz Trade Law, refunds are issued to the IOR's bank account recorded in ACE or to a party designated by the IOR via CBP Form 4811. The importer must authorize and engage in the process — neither the broker nor the forwarder can act without their involvement.

Customs Broker

Reviews entry data, confirms eligibility, prepares the CAPE Declaration, and submits it through ACE. According to Diaz Trade Law, the CAPE Declaration is submitted as a CSV file through CAPE in ACE, and both the IOR and the licensed customs broker must have ACE accounts. A licensed customs broker is the right party to handle the actual filing — this is not a process importers should attempt without one.

NVOCC / Forwarder

Guides the importer client through what the process involves, helps organize shipment and entry records, and connects the client with the customs broker. Acts as the operational coordinator — not the filer.

CBP

Reviews the CAPE Declaration submission and validates the entries and eligibility. According to Diaz Trade Law, after processing and validation, ACE liquidates or reliquidates the entries by removing IEEPA HTS codes. Refunds are issued via ACH where applicable — unless a compliance concern requires further CBP review. Diaz notes CBP has not addressed what would constitute a compliance concern or trigger further review.

CAPE Refund Readiness Checklist

Before initiating the CAPE Declaration process, confirm the following are in place:

• Entry numbers list compiled for all relevant shipments
• IEEPA duties confirmed as paid on those entries
• ACE account access confirmed and active for the importer
• ACH refund setup completed in ACE — required for CBP to issue the refund
• Eligibility reviewed — not all entries with IEEPA duties will qualify
• Licensed customs broker aligned and ready to prepare and file the declaration

Incomplete setup can delay or block refunds. Going through this checklist before engaging the broker saves time for everyone involved.

Ready to Review CAPE Eligibility for Your Importer Clients?

Suggested Message NVOCCs Can Send to Importer Clients

If you want to proactively inform your importer clients about CAPE Phase 1, here is a short, accurate message you can use or adapt:

CBP launched CAPE Phase 1 on April 20, 2026, according to Diaz Trade Law reporting. The process allows certain importers to request refunds of IEEPA duties through ACE, but refunds are not automatic — eligibility, ACE account setup, ACH refund configuration, and customs broker coordination are all required. If you believe your company paid IEEPA duties on qualifying entries, we can help connect you with AP Customs to review next steps. Please confirm current CBP guidance before taking action.

Refund Timing

According to Diaz Trade Law, after a CAPE Declaration is processed and validated, refunds are expected within 60 to 90 days unless a compliance concern requires further CBP review. Diaz also notes that CBP has not addressed what would constitute a compliance concern or trigger further review. Refund timing is not guaranteed and may vary depending on the specific entries and CBP processing.

This article relies in part on Diaz Trade Law reporting regarding CBP's CAPE Phase 1 launch and IEEPA refund process updates. Importers and brokers should confirm current CBP guidance and ACE functionality before taking action.

This article is for general informational purposes only and is not legal advice. Eligibility and filing requirements should be reviewed based on the specific facts of each entry.