What is the main difference between an IEEPA refund and duty drawback?
An IEEPA refund returns IEEPA duty, which has ended; drawback returns up to 99% of the duty on goods you export or destroy, every year you export.[1]
FAQ
IEEPA refunds, CAPE and drawback
Most IEEPA refunds go through CAPE, CBP's refund process, and CAPE excludes entries already on a drawback claim. We check every entry for CAPE first.
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- Published fees, charged after CBP pays
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17 questions
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Can I claim both an IEEPA refund and duty drawback on the same entry?
Not at the same time: CAPE excludes entries that are the subject of a drawback claim, and CBP recommends filing CAPE first.
Are IEEPA tariffs eligible for duty drawback?
Reciprocal IEEPA duty was drawback-eligible, but CAPE comes first.
The detail
CAPE refunds the IEEPA duty in full plus interest; drawback returns up to 99% of the duty on the exported share only; and CAPE excludes entries already on a drawback claim.
CBP recommends filing CAPE before drawback. The IEEPA fentanyl duties never allowed drawback.
Also asked
- Are IEEPA reciprocal tariffs eligible for duty drawback?
- For the reciprocal tariff, should I use drawback or CAPE?
What about the fentanyl tariff?
No drawback was ever available on the IEEPA fentanyl duties; the orders that imposed them said "No drawback shall be available."
The detail
Those duties have ended. Most IEEPA refunds go through CAPE, and your broker or refund firm can tell you which of your entries fit a CAPE phase.
What is CAPE?
CAPE is CBP's process for refunding IEEPA duty: the importer of record or its broker files a declaration in ACE, and CBP refunds the duty plus interest.
What do CAPE Phases 1, 2 and 3 cover?
Phase 1 took recent entries, Phase 2 added reconciliation entries, and Phase 3, which was scheduled to open October 6, 2026 (as of September 17, 2026), is for court plaintiffs only.[7]
Do I qualify for a refund?
Your entries decide. CAPE refunds go to the importer of record that paid IEEPA duty, and each entry's liquidation status, protest status and entry type determine whether a CAPE phase takes it.
The detail
Refunds aren't automatic: the importer of record or its filing broker must file a declaration, and CBP pays by ACH.
Our sequencing check flags every entry with IEEPA duty so your broker or refund firm can act.
Also asked
- Who is eligible for IEEPA tariff refunds?
- Who qualifies for tariff refunds?
- Which entries qualify for refunds?
- Are IEEPA tariffs automatically refundable?
How does liquidation affect tariff refunds?
Liquidation is CBP's final computation of the duty on an entry; an unliquidated entry is still open.
The detail
An entry not liquidated within a year is deemed liquidated unless CBP extends it.
For CAPE, liquidation status sets the phase: Phase 1 took unliquidated entries and those liquidated within the prior 80 days, and finally liquidated entries mostly wait on Phase 3 or the courts.
Drawback is computed on final liquidated duties.
- 19 U.S.C. 1504[9]
- 19 CFR 190.81[10]
- CBP CAPE guidance, via Troutman Pepper, Apr 2026[8]
- Ice Miller, 2026[11]
Also asked
- What's the difference between liquidated and unliquidated entries?
Will I need to go to court to obtain my refunds?
It depends on your entries. Most IEEPA refunds go through CAPE without a lawsuit.
The detail
Phase 3 covers finally liquidated entries only for Court of International Trade plaintiffs that gave CBP their importer number by July 30, 2026.
Other importers with finally liquidated entries depend on a pending Federal Circuit appeal (V.O.S. Selections, No. 26-1895) or a class ruling.
We don't handle litigation; ask trade counsel. Not legal advice.
Also asked
- Should companies pursue litigation or administrative claims for tariff refunds?
- What is the Federal Circuit appeal and how does it affect my refund?
What is the statute of limitations for IEEPA refund claims?
It depends on the route, so have trade counsel confirm your dates.
The detail
One law firm reads the window to sue at the Court of International Trade as two years from each entry date: an entry made April 5, 2025, would have until April 5, 2027, and later entries run into 2028.
Another says the limit expires, at the earliest, in February 2027. CAPE's phases set their own cutoffs. Not legal advice.
Also asked
- What is the IEEPA refund deadline?
Do I need a post summary correction or protest?
Your broker or trade counsel decides; we don't file either. Protests generally must be filed within 180 days of liquidation.
The detail
An entry under an open protest was excluded from CAPE Phase 1, so a protest can change an entry's CAPE route.
Settle the order with your broker before anyone files anything.
Also asked
- Should importers file Post Summary Corrections (PSC) for unliquidated entries?
- What are the key eligibility timeframes and deadlines for filing a customs protest?
Why are some CAPE refund claims being rejected?
Common causes are entries CAPE excludes and entries that fail CBP's checks.
The detail
Excluded entries include those on a drawback claim, under open protest, finally liquidated beyond the phase's limit, filed outside ACE, under pending antidumping or countervailing liquidation, and Type 08 and 23 entries.
By September 11, 2026, 6.1 million entries had failed CBP's entry-level checks. Your broker or refund firm reviews each rejection.
Also asked
- What causes CAPE Declaration rejections?
How long does CAPE processing take?
It varies by phase and by whether your declaration and bank details pass CBP's checks.
The detail
"Certified" means CBP has sent the refund to Treasury for payment; it isn't paid yet.
Refunds go by ACH, and on September 11, 2026, 20,184 refunds worth about $1.3 billion were on hold for missing ACH details.
Enroll in ACH refunds through your own ACE Portal account; we never ask for your bank details.
Also asked
- How long will refunds take?
- Why are certified refunds sometimes stuck at Treasury?
- Why is ACH enrollment important for receiving an IEEPA refund?
What is CBP Form 4811?
Form 4811 names another party to receive a refund for the importer of record, but it "does not transfer ownership" of the refund.
The detail
Only the importer of record or its filing broker may file a CAPE declaration.
If you paid higher prices but weren't the importer of record, any claim runs against your supplier under your contract.
If you exported those goods, drawback may still apply. We never take a Form 4811 designation.
Also asked
- Can a party other than the IOR receive IEEPA duty refunds?
- What if my business paid higher prices because of tariffs, but was not the importer of record?
- What if a supplier received the refund but passed the tariff cost to us?
Does NexQloud Drawback file CAPE declarations?
No. CAPE is filed by the importer of record or its filing broker; refund firms work through one of them.
The detail
We check every entry for CAPE first, and no entry goes into a drawback claim package while its CAPE question is open; the check is included in every drawback engagement.
For drawback itself, the agent drafts the claim package for your broker's review, and a licensed customs broker, ours or yours, reviews every line and files.
We don't file protests or handle litigation.
- CBP CAPE guidance, via Holland & Knight, Apr 2026[3]
Also asked
- Can NexQloud Drawback help file my tariff refund request?
What does the IEEPA sequencing check do?
The sequencing check finds every entry in your records that carries IEEPA duty and keeps it off drawback claims until its CAPE question is settled.
I already received my IEEPA refund. Can I still claim drawback on those imports?
Possibly. CAPE returned the IEEPA duty, but the same entries may also carry ordinary, Section 301, Section 122, Section 232 or Section 338 duty.
The detail
Drawback can return up to 99% of that duty on goods you exported or destroyed within five years of import, computed on final liquidated duties.
Your entries decide.
Also asked
- Got my CAPE refund. Is there more money in those entries?
Editorial
Sources and changes
Written by the NexQloud Drawback team from the primary sources linked on this page.
Change log
- First published.
Not legal advice. NexQloud Drawback is not a government agency.
NexQloud Drawback is software used by licensed customs brokers.
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01
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Entry summaries, invoices and export records.
WhoYou
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02
AI drafts your claim.
It ties each export to its import, to the cent.
WhoThe agent
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03
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The refund goes directly to your bank account.
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Ready now? Start a claimIEEPA refunds
Got your IEEPA refund? Drawback is the one that repeats.
We check every entry for CAPE first, the order CBP recommends.[3] Drawback can recur every year.
Which tariffs qualify?
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What is duty drawback?
A refund of up to 99% of the duties, taxes and fees you paid on imports that you later export or destroy, or that went into products you export.[1] It works in any industry.
When can I start?
We open to importers in waves, in the order of the waitlist. The demo shows the whole product with sample data today, and partners can apply now.
What will you need from me?
One quarter of records to start: entry summaries, invoices, packing lists, shipping documents, and export, return or destruction records.
How long until CBP pays?
With accelerated payment, CBP can pay before the claim is final. Its only published timing, from December 2018: processing "will generally take place within 3 weeks of the claim resubmission date."[21]
Can I use my own customs broker?
Yes. Invite your own broker, or use one we name before you sign. Your POA stays with your broker, and your broker sets its own fee.
What if CBP pays less than claimed?
The fee follows what CBP actually pays. If CBP later recovers part of a payment, the fee is reduced to match.
Do you file CAPE claims?
No. We check every entry for CAPE first and flag what belongs there. You or your broker files CAPE. Refund firms work through one of you.