U.S. Customs and Border Protection (CBP) filed a status report earlier this week in Atmus Filtration before the Court of International Trade (CIT), outlining the scope and limitations of the initial phase of the Consolidated Administration and Processing of Entries (CAPE) program. The report provides important insight into how CBP intends to process duty refunds and manage eligible entries.

Key Highlights of CAPE Phase 1

CBP confirmed that CAPE Phase 1 will be limited in scope. It will apply only to entries that are either unliquidated or still within the 90-day voluntary reliquidation period under 19 U.S.C. § 1501. This limitation remains in place despite the court’s amended order extending relief to finally liquidated entries. CBP has indicated, however, that it intends to expand CAPE in a future phase to include finally liquidated entries.

Phase 1 will accept entries with liquidation statuses such as “Suspended,” “Extended,” or “Under Review,” as well as warehouse and warehouse withdrawal entries. For these entries, refunds will be issued through the normal liquidation process rather than immediately. This includes entries subject to antidumping and countervailing duties (AD/CVD).

Certain categories of entries are explicitly excluded from CAPE Phase 1. These include entries flagged for reconciliation, entries tied to drawback claims, entries covered by open protests, entries not filed in ACE (or lacking a liquidation status in ACE), and entries subject to AD/CVD where liquidation instructions have been issued but liquidation is still pending under 19 U.S.C. § 1504(d).

CBP also stated that it may take up to 45 days from the acceptance of a CAPE Declaration to review and liquidate validated entry summaries, unless additional compliance review is required.

Future CAPE Enhancements

CBP outlined several anticipated enhancements for future CAPE phases, including improved compliance validation tools, mechanisms to address outstanding duty bills (including non-IEEPA duties), the ability to process finally liquidated entries, and functionality to handle non-ABI entries without entry summary line data.

Key Takeaways for Importers

Protests and Litigation Strategy Remain Critical
CBP’s update does not resolve key legal uncertainties, including whether protests are required or whether filing a refund suit remains necessary. Importantly, entries with open protests are excluded from Phase 1, but so are finally liquidated entries. It remains unclear whether importers can withdraw protests and still participate in CAPE Phase 1. As a result, importers should continue to file timely protests and evaluate litigation options.

Timing Considerations for Protests
CBP’s statements suggest that entries may be processed through CAPE if there are at least 10 days remaining in the 90-day voluntary reliquidation period. This raises a potential strategy of delaying protest filings. However, this approach carries risk, as waiting too long could result in missing the deadline to file a valid protest. Importers should carefully weigh timing considerations before delaying action.

Increased Compliance Scrutiny
CBP has made clear that it will conduct compliance checks and may offset refunds where appropriate. This reinforces the importance of ensuring that entries are accurate and fully supported by documentation, including classification, valuation, and country of origin.

RIM logistics, ltd. will continue to closely monitor this evolving situation and provide updates as necessary. Please reach out to your RIM representative if you have any further questions.