IEEPA Tariff Refund Process Recap:  The roll out of the refund process continues, bringing optimism to the import community that refunds actually may happen.   Judge Eaton of the CIT/Court of Interational Trade jus issued a clarifying court order last week, in Atmus Filtration v. United States clarifying that CBP must reliquidate previously liquidated entries to remove IEEPA duties, including entries that have already reached final liquidation. This expansion goes beyond the Court’s March 20 order and makes clear that even entries that would normally be considered closed must now be corrected by CBP.  On Tuesday, March 31, CBP’s Executive Director of Trade Programs filed a declaration with the U.S. Court of International Trade providing a progress update on the agency’s new IEEPA duty refund processing system called CAPE (Consolidated Administration and Processing of Entries). As we reported Tuesday evening, the system has four components and remains under development: the Claim Portal is 85% complete, Review and Liquidation/Reliquidation is 80% complete, the Refund component is 75% complete, and Mass Processing is 60% complete. CBP represents that development remains on schedule. While a date was not announced for the start up of the claims process, previous reports indicated a goal of late April.

Phase 1 of CAPE will cover roughly 63% of entries on which IEEPA duties were paid. Liquidation status is the single most important factor in determining whether your entries qualify for Phase 1 and when you will see a refund. Once CBP accepts a filing, the processing time is expected to take approximately 45 days to validate and process refunds on the relevant entries.

Phase 1 will cover:

• Unliquidated entries
• Entries liquidated within the prior 80 days (to allow reliquidation before the 90-day deadline for voluntary liquidation changes by CBP)
• Entries with a liquidation status of suspended, extended, or under review.
• Warehouse and warehouse withdrawal entries

Key types of entries not covered in Phase 1 include:

• Entries fully liquidated ( 90 days after liquidation date)
• Entries with open protests
• Entries designated on drawback claims

All refunds are now issued electronically as of February 6, 2026.  It is essential to be enrolled in the ACH refund program in the ACE portal to obtain refunds.  If you have any questions on enrolling in this program, please let us know and we will be happy to assist.

Key action items:

• Enroll immediately for electronic refunds if you have not done so
• Audit your entry portfolio now and sort entries by liquidation status to understand your Phase 1 eligibility and expected refund timeline
• If your exposure is concentrated in fully liquidated entries, plan for delays and watch for further updates.   Protest action is still being recommended by many attorneys for entries that are 90 days past liquidation date.
• Flag entries with open protests, drawback claims, or reconciliation issues for separate Phase 2 tracking

We will continue to monitor the updates from CIT and CBP as they become available. Should you need assistance analyzing your entries or phase eligibility please reach out to hear how we can help. 

Section 122 tariffs and Section 301 Investigations: At this point, the new tariffs implemented by President Trump under Section 122 remain at 10% despite various threats to raise this amount to 15%. Subsequently, the US administration has launched a series of Section 301 investigations into trade practices that could result in additional tariffs being levied. The USTR has an open comment period and hearing process for these investigations, and affected stakeholders can submit written comments by April 15.

Section 232 Update: New executive actions have modified Section 232 tariffs on steel and aluminum products. Some products with minimal derivative products have been removed from the list, some commodities will have a lower tariff, and others a higher tariff due to a change in valuation process, now basing the tariff on the full sales value of the metals. We are analyzing the actions and changes and will report back on any impact on beverage alcohol products.

EU-USA Trade Agreement:  The European Union continues to move forward to approve the EU-USA trade agreement.  The EU parliament voted for conditional approval of the agreement and the next phase is to have each country in the EU finalize approval and sign off on the deal.   The good news for beverage alcohol importers is that the agreement has been modified with a “suspension” clause that could suspend the deal if the US implements new tariffs exceeding 15%.

Shipping Costs Continue to Increase: Fuel prices are rising as global transportation faces disruptions tied to escalating tensions between the U.S., Israel, and Iran. Many ocean carriers are rerouting vessels away from the Strait of Hormuz, while others remain delayed, worsening supply chain congestion.

Carriers have introduced various Emergency Surcharges, including new fuel surcharges from ocean, trucking, and intermodal providers.  We are monitoring developments closely, ensuring FMC compliance, and working with partners to mitigate impact.

Government Shutdown Update: The US remains in a partial government shutdown primarily affecting the Department of Homeland Security, now entering its seventh week. Some workers, like TSA agents, have received temporary pay through executive action, but the broader funding issue remains unresolved, and negotiations are still ongoing. While the Senate has proposed a compromise to fund most of DHS, the House has not approved it, so the stalemate continues. We will continue to provide updates on this ongoing situation.

Mark your Calendars for WSSA’s Annual California Event! Join WSSA for a business meeting and luncheon discussing the latest updates within the wine and spirits and logistics industries, followed by a happy hour harbor cruise showcasing the Port of Oakland. The event will take place May 8, 2026, with the business meeting at the Claremont Resort & Club from 12-3:30pm and the Harbor Cruise Tour from 4:30-7:30pm. Topics include updates on the global logistics market, discussion on IEEPA and tariff mitigation, and expertise on duty drawback. RSVP to hrandolph@wssa.com to reserve your spot!

LCL Services from France, Italy, and Spain/Portugal: Bi-monthly departures continue from each of these countries for your small shipments, offering a per case rate from point of pick up to the Alba Wine and Spirits warehouse in Edison New Jersey. Shipments from other European countries can be added into the mix, with pick-ups offered in most European countries. Please let us know if you need any further information!