CAPE Declarations Ongoing Amid US Appeal of Refund Order
Multiple customs brokers and trade professionals have confirmed that they have been able to submit requests for refunds through the Consolidated Administration and Processing of Entries portal amid the U.S. government's appeal of the Court of International Trade's order directing CBP to refund duties imposed under the International Emergency Economic Powers Act.
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The question of whether they could came up during a Senate Finance Committee hearing June 3, with Sen. Thom Tillis, R-N.C., under the impression that the appeal froze CAPE requests.
He said that CBP “stood up a portal” to facilitate refunds of IEEPA duties. "Now they're appealing the decision, so that people who were applying for it can no longer [do so] while the appeal is ongoing."
Lori Mullins, a broker with Rogers and Brown, said in an email that a client was able to file a CAPE declaration today. Denise Calle, principal attorney at Olsson Frank, said in an email that CAPE is operating as intended and ACE reports are still generating.
"We are seeing a trend of cash in hand approximately 20 days after CAPE submission for most clients that filed in CAPE Phase I," she said. "There are no disruptions at this time, but we continue to monitor the process closely and advise clients accordingly."
Calle suggested that importers should file both protests and a CIT suit, as the CAPE system doesn't preserve the right to a tariff refund, and importers should continue monitoring entries and liquidation dates.
"Unless an importer has received an entry-specific tariff refund, all entries should be monitored closely and treated with caution until a final and unappealable order is issued," she said.
Tom Gould, CEO of Tom Gould Customs Consulting, said in an email that nothing has changed in CAPE, and as the entries subject to the appeal aren't eligible for phase one, he said he doesn't see any impact on those eligible entries.
"The appeal is raising a lot of questions, but I believe it will impact a small percentage of entries with IEEPA tariffs. Unfortunately, it will have the largest impact on smaller importers with low value (under $2500) informal entries," he said, as informal entries liquidate when paid and more passed the liquidation deadline than formal entries.