The U.S. Customs Authority has already launched CAPE, a system created to process the massive drawback of duties collected under the International Emergency Economic Powers Act (IEEPA). The news is relevant not only for its size, but for what it reveals about the new standard for foreign trade: more digital, traceable and scalable customs processes in the face of high-impact court decisions. Reuters reported that the potential universe of refunds is around USD 166 billion, corresponding to more than 330,000 importers and about 53 million entries.
The origin of this process lies in the U.S. Supreme Court decision of February 20, 2026, which concluded that the use of IEEPA to impose certain tariffs was illegal. However, the Supreme Court did not detail how those payments were to be refunded. That part was left to the Court of International Trade (CIT), which ordered U.S. Customs and Border Protection (CBP) to administer the refunds broadly, not only to those who sued, but to all importers reached by that decision.
CAPE stands for Consolidated Administration and Processing of Entries. It is a new functionality within CBP's ACE system to electronically process IEEPA duty refunds. Its logic is key: instead of refunding money on an entry-by-entry basis, CAPE seeks to consolidate refunds and applicable interest into a single electronic flow for each importer, reducing operational friction and speeding up the process.
For logistics and foreign trade, this matters for two reasons. The first is financial: we are talking about potentially very high reimbursements that can alter actual import costs, margins and cash flows. The second is operational: CAPE shows how a modern Customs is solving a massive problem through automation, batch validations and consolidated payments, rather than relying on purely manual review.
Here's an important clarification: the direct beneficiary of the process is the U.S. Importer of Record (IOR) or their authorized customs broker. Phase 1 of CAPE allows the IOR or his broker to upload a declaration in CSV format within the ACE portal, in a new CAPE tab. Even a third party can receive the reimbursement via ACH, as long as they are properly authorized and configured in the system.
In practice, this means that the Colombian exporter does not receive the money directly, unless there is a contractual or commercial structure that transfers it. The gateway to reimbursement is still the U.S. importer or his broker. Therefore, for exporting companies in Colombia, Mexico or Latin America, the correct question to ask is not "will they refund duties to me?", but "is my client in the US handling CAPE and can that change future pricing, negotiations or volume?". This is an operational inference based on who can file and collect the refund within the official scheme.
According to the official guidance and CBP's public communication, Phase 1 primarily covers certain unsettled entries and certain entries within 80 days of settlement. CAPE was launched on April 20, 2026, and this first stage is designed for the most straightforward and actionable cases within the ACE environment.
Not everything goes in immediately. CBP and law firms that are following the issue have explained that some categories and more complex cases are left out of this first phase because of functional limitations or because they require different treatment. That includes older entries or scenarios that might require protests, additional reliquidations or later phases of the system.
In simple terms, the importer or broker submits a CAPE Declaration in ACE. The system then runs validations on the file and on the entries included. If the entry qualifies, ACE removes the corresponding IEEPA codes and duties, recalculates the duties without those charges, and CBP proceeds with liquidation or reliquidation before Treasury issues payment. Each file can include up to 9,999 entries, although multiple returns can be filed.
This is relevant because it turns a gigantic judicial and customs problem into a manageable digital flow. It is not just a return: it is a sign of how customs automation can change the institutional response to large-scale contingencies.
The scale is no longer theoretical. Reuters reported that, as of April 26, about 1.74 million accepted entries were already in the refund process. Another legal source based on the declaration CBP filed with the CIT indicated that, as of April 26, importers and brokers had filed some 75,300 CAPE declarations, covering more than 11.2 million entries, of which those 1.74 million had already passed validations.
In addition, Reuters reported that the government expected the first payments to go out around May 11 or 12, 2026, via ACH, which reinforces the idea that the system did not remain an announcement: it is already entering into actual execution.
For a U.S. importer, the message is clear: check eligibility, status of your entries, ACE account configuration, ACH enrollment and coordination with your customs broker. For a Latin American exporter, the reading should be more strategic: if your U.S. customer recovers part of the duties paid, that can alter pricing structures, margins, terms of trade and sourcing decisions.
For freight forwarders, freight forwarders and logistics operators, the case also leaves an important lesson: increasingly, regulatory and judicial changes not only affect customs, but the entire commercial conversation around cargo. A massive refund like this can influence inventory decisions, purchase frequency, landed costs and contractual planning. It's not just a legal issue; it's a supply chain issue. This last conclusion is a business reading from the economic scope of the program and the importer's central role in the process.
Although CAPE is already operating, the process is not yet fully closed. Law firms have warned that the government's deadline to appeal the general reimbursement order was until early June 2026, and a successful appeal could delay payments or alter part of the schedule. In addition, some cases will continue to depend on later phases or formal actions to preserve rights, such as protests over older or complex tickets.
That means that even with the system active, the issue remains dynamic. The news is not just that "the U.S. started returning tariffs. The news is not just that "the U.S. started to refund tariffs," but that we are seeing in real time how a decision of high economic impact translates into a new, still expanding, customs architecture.
CAPE is not just a technical tool for CBP. It is a sign of where foreign trade is moving: more digitization, more traceability and more need to connect the legal with the operational. For the region, the learning is clear: understanding these changes in time can make the difference between reacting late or turning regulatory news into a commercial advantage.
For Compass Logistics, the key reading is this: the direct beneficiary of the rebate is the importer in the US, but the real impact can be felt throughout the chain. And when that happens, exporters, logistics operators and risk advisors must be ready to translate the news into concrete decisions.
At JAH Insurance we closely follow the changes that impact international trade, because understanding the environment is also a way to prevent risks and make better decisions in the logistics chain.