CBP Sets June 29 CAPE Phase 2 Launch and Reports a $94.94B Refund Pipeline

The CAPE refund program now has its first live Phase 2 lane and its largest public pipeline figure to date. U.S. Customs and Border Protection (CBP) deployed Phase 2 reconciliation functionality on June 29, 2026, while Phase 3 programming for finally liquidated entries is targeted for late July.

Holland & Knight first reported that approximately $94.94 billion in potential and certified Phase 1 refunds had been accepted for processing as of June 5. CBP’s July 1 Lord Declaration later raised the public figure to $104.29 billion as of June 29. This article explains what those numbers mean, which entries fit the Phase 2 lane, and why importers still need protest and litigation backup planning.

What CBP Announced at the June 9 Hearing

CBP Executive Assistant Commissioner for Trade Susan Thomas presented the agency’s operational roadmap during the June 9 CIT hearing. Coverage from the National Customs Brokers & Forwarders Association of America, Holland & Knight, Thompson Hine, and Husch Blackwell identifies two target dates:

• June 29, 2026: Phase 2 reconciliation functionality
• Late July 2026: Phase 3 programming for finally liquidated entries

The court had previously ordered CBP Commissioner Rodney Scott to appear personally, but that requirement was withdrawn. Thomas provided the operational testimony instead.

What the $94.94 Billion Pipeline Means

According to Holland & Knight’s hearing summary, CBP reported approximately $94.94 billion in potential and certified refunds accepted for processing as of June 5. More than 16 million entries had moved into CAPE processing, and approximately $23 billion had been transmitted to the Department of the Treasury by the June 9 hearing.

The distinction between pipeline and payment matters:

1. A CAPE declaration must pass file validation.
2. Each entry must pass entry-level validation.
3. CBP removes the IEEPA Chapter 99 line and liquidates or reliquidates the entry.
4. The refund may be netted against other entry-level amounts or federal debts.
5. Treasury issues the payment to the ACH account on file.

An accepted amount is therefore not the same as money already deposited. Use the ACE refund monitoring reports guide to distinguish declaration acceptance, Treasury transmission, ACH rejection, and final payment.

Who Fits the June 29 Phase 2 Lane

The initial confirmed Phase 2 scope is reconciliation-focused. It covers certain underlying Entry Types 01, 02, and 06 that:

• are flagged for reconciliation;
• do not have an Entry Type 09 reconciliation already on file when CAPE accepts the declaration; and
• remain unliquidated or within the applicable recent-liquidation window.

Holland & Knight reports that this workstream may involve approximately 2.8 million entries and $28.7 billion in potential refunds.

That does not mean every reconciliation entry qualifies. If the Entry Type 09 is already on file, CBP says it is developing a separate solution. Read the Phase 2 reconciliation filing preparation guide before assembling the entry list.

How Reconciliation Deadlines Interact With CAPE

The CBP IEEPA Duty Refunds FAQ provides the current sequencing guidance:

• If the reconciliation deadline is more than 30 days away, CBP suggests allowing the CAPE declaration to process first.
• If the deadline is less than 30 days away, file the reconciliation on time.
• If the reconciliation increases duties, CBP says to deposit the duties, taxes, and fees owed without adding the increased IEEPA duties.

Do not miss a reconciliation deadline merely because Phase 2 is now live. CAPE timing, reconciliation timing, and the 180-day protest window are separate calendars.

What Phase 2 Does Not Yet Resolve

The June 29 deployment is not a general release for every Phase 1 exclusion. CBP has not confirmed that the initial lane covers:

• Entry Type 09 reconciliations already filed;
• all antidumping or countervailing duty entries;
• drawback claims;
• warehouse and duty-deferral entries;
• entries with open protests; or
• finally liquidated entries.

Use the outside Phase 1 strategy guide to classify these categories separately.

Phase 3: Technology and Legal Eligibility Are Different

CBP expects Phase 3 programming for finally liquidated entries to be ready in late July. Thompson Hine and Holland & Knight report that importer-of-record identifiers will be important for routing those refunds correctly.

However, the government appealed the CIT’s universal-refund order on June 2 and maintains that finally liquidated refunds for non-litigants require importer-specific court authority. A working Phase 3 system does not by itself answer who is legally entitled to use it.

Importers with material finally liquidated claims should review the Phase 3 and CIT guide and speak with qualified trade counsel before assuming an administrative payment will arrive.

Five Actions to Take Now That Phase 2 Is Live

1. Separate the portfolio by entry posture. Identify clean Phase 1 entries, reconciliation-flagged entries without a Type 09 filing, already-filed reconciliations, warehouse withdrawals, and finally liquidated entries.
2. Confirm ACE access and ACH banking. Use the ACE Portal account setup guide and verify the refund account before filing.
3. Prepare a clean reconciliation list. Include the entry number, liquidation status, reconciliation flag, Type 09 status, IEEPA Chapter 99 line, and duty amount.
4. Calendar protest deadlines. File or evaluate a protective protest within 180 days of liquidation where appropriate. The IEEPA protest filing guide explains the basic process.
5. Get legal review for final entries. Use the CAPE, protest, or CIT decision framework rather than waiting for Phase 3 to resolve the legal dispute.

What to Watch Next

Monitor the CBP IEEPA Duty Refunds page and the CSMS message index for Phase 2 operating fixes, validation-rule changes, warehouse guidance, and the next Phase 3 court checkpoint.

The next litigation checkpoints reported by trade-law sources include a June 25 status conference, a July 1 government progress report, and a July 9 settlement conference. Those events may clarify whether the Phase 3 system will remain limited by plaintiff status.

Update — July 7, 2026: Phase 2 Is Live and the Pipeline Is Larger

• Phase 2 deployed June 29. CBP CSMS #69066837 says importers and authorized customs brokers can now include reconciliation-flagged Entry Types 01, 02, and 06 where no Entry Type 09 reconciliation has been filed. The same 80-day liquidation limit still applies.
• CIT data increased the public pipeline figure. CBP Executive Director Brandon Lord reported to the Court of International Trade that, as of 3:00 p.m. EDT on June 29, 213,939 CAPE Declarations had been submitted and 149,840 had passed file validation. Source: Lord Declaration, July 1, 2026.
• Accepted processing reached $104.29 billion (as of June 29). The July 1 Lord Declaration reports approximately $104.29 billion in potential and certified refunds accepted for CAPE processing, with approximately $71.06 billion completed, certified by CBP, and sent to Treasury for disbursement. The July 13 Lord Declaration later raised these figures to approximately $121.75 billion accepted and $86.3 billion sent to Treasury as of July 10. See IEEPA Refund Case Shifts to Freestyle World as CAPE Pipeline Reaches $121.75B.
• ACH remains a real bottleneck. The same declaration reports 8,384 refunds not transmitted to Treasury because ACH account information had not been provided by the importer of record or Form 4811 designee. See the ACH enrollment guide.
• Warehouse guidance is now separate. CBP CSMS #69127837 says new CAPE Declarations should not include warehouse Entry Types 21 or 22 after July 7; filers should use qualifying warehouse withdrawals instead. See the warehouse withdrawal filing guide.

If your entries span Phase 1, reconciliation, warehouse withdrawals, protest, and final-liquidation categories, request a free assessment to organize the portfolio before filing another declaration.

Source Notes

Sources: CBP IEEPA Duty Refunds FAQ; CSMS #69035485; CSMS #69066837; CSMS #69127837; Lord Declaration, July 1, 2026; CIT Order, July 2, 2026; NCBFAA Monday Morning eBriefing; Holland & Knight, IEEPA Tariff Refund Update: Government Appeals; Thompson Hine, CBP Announces Phases 2 and 3 of the IEEPA Tariff Refund Process; Husch Blackwell coverage of the June 9 CIT hearing. CAPE Portal Guide is not a law firm, customs broker, or government agency.