CIT Certifies IEEPA Refund Class Action as CBP Begins CAPE Phase III Processing
Major Developments in IEEPA Tariff Refunds
The U.S. Court of International Trade (CIT) issued a significant ruling on October 8, 2026, certifying a class action for importers seeking refunds of duties collected under the International Emergency Economic Powers Act (IEEPA).
The ruling in Freestyle World, Inc. v. United States, Court No. 26-01088, follows the October 6 launch of Phase III of U.S. Customs and Border Protection’s (CBP) Consolidated Administration and Processing of Entries (CAPE) refund system.
Together, these developments mark important progress in the IEEPA refund process. However, class certification does not itself direct CBP to issue refunds to all class members. Further court proceedings and implementation guidance will help determine how the ruling affects eligible importers, including those with finally liquidated entries.
Court of International Trade Certifies Class Action
On October 8, the CIT granted a motion for class certification under USCIT Rule 23(b)(2), allowing the litigation to proceed on behalf of a defined group of importers rather than requiring each importer to pursue a separate lawsuit.
The certified class includes importers of record that paid duties under the challenged IEEPA tariff orders between February 1, 2025, and February 19, 2026. Importers that have separately filed actions seeking recovery of IEEPA duties are excluded from the class.
The court also appointed Freestyle World, Inc. as class representative and designated attorneys from Barnes, Richardson & Colburn LLP and Lieff Cabraser Heimann & Bernstein LLP as class counsel.
This development is particularly important for importers with finally liquidated entries that have not pursued individual litigation.
Previously, CBP limited CAPE Phase III processing to qualifying importers covered by specific CIT reliquidation orders. The newly certified class may provide a path toward broader relief. However, additional court action and implementation guidance will be needed to clarify how the class affects the processing of eligible entries and refunds.
How the Class Action May Affect CAPE Phase III
The October 8 ruling may change the path toward relief for importers that have not filed individual CIT actions.
Until now, the government has maintained that a specific court order is necessary before CBP can reliquidate finally liquidated entries and issue the corresponding IEEPA refunds.
The certified class seeks an injunction directing CBP to liquidate or reliquidate covered entries without regard to the invalidated IEEPA duties.
If the court grants that relief and the order remains effective, qualifying class members could potentially receive refunds without having to pursue separate lawsuits.
Several matters remain unresolved, including how eligible class members will be identified, whether additional CAPE declarations or other procedures will be required, and when CBP might begin processing additional finally liquidated entries under a class-wide order.
The government has opposed class certification, and further legal proceedings or appeals may affect implementation.
What Importers Should Do Now
Importers that previously paid IEEPA duties should continue reviewing their affected entries and refund status, particularly entries that have reached final liquidation.
Juno Customs Solutions recommends that importers take the following steps:
Review affected entries. Identify entries with IEEPA duty payments and distinguish between unliquidated, liquidated, and finally liquidated entries.
Verify CAPE refund activity. Confirm which entries have been submitted, accepted, processed, or refunded, and reconcile the amounts received.
Review litigation status. Importers with individual CIT actions should coordinate with their legal counsel regarding Phase III eligibility. Importers without individual actions should consult trade counsel about potential class membership and how the ruling may affect their refund rights.
Confirm electronic refund information. Ensure CBP has current importer information and the electronic refund enrollment required for payment.
Monitor court orders and CBP guidance. Class certification does not eliminate the need to comply with applicable filing requirements or legal deadlines. Importers should consult trade counsel before relying on the class action instead of pursuing or preserving individual claims.
Upcoming Court and CAPE Milestones
The CIT’s October 8 order established the following upcoming procedural deadline in Freestyle World, Inc. v. United States:
Date – Court Action
October 13, 2026 – Closed conference between the parties
October 22, 2026 – Deadline for the parties to submit a proposed scheduling order, including the government’s response schedule
These are procedural milestones, not general importer refund filing deadlines or confirmed dates for class-wide refunds to begin.
Additional court orders and CBP guidance will help clarify how the certified class affects existing CAPE procedures and the next steps for eligible importers.
Juno Customs Solutions: Our Recommendations
The certification of the class action is a significant development for importers seeking recovery of IEEPA duties, particularly those that have not participated in individual litigation.
At the same time, CAPE Phase III is processing qualifying finally liquidated entries for importers with applicable court orders. The newly certified class does not automatically expand that processing to every class member.
Juno Customs Solutions encourages importers to continue reconciling their IEEPA duty payments, monitoring the liquidation status of their entries, and coordinating with their customs broker and trade counsel to protect available refund rights.
Our compliance team will continue monitoring CAPE developments, CIT orders, and CBP filing requirements as the refund process evolves.
For assistance reviewing affected entry records or reconciling IEEPA refund activity, contact Juno Customs Solutions at brokerage@junocustoms.com.
This update is provided for general trade compliance information and does not constitute legal advice. Litigation strategy, class membership, and preservation of judicial claims should be reviewed with qualified trade counsel.