Judge Eaton Orders CBP Commissioner to Appear in Person — What the May 27 Show Cause Order Means for Your IEEPA Refund

CBP filed its May 26 CAPE progress report with the Court of International Trade on schedule. The numbers show real progress — $20.6 billion certified to Treasury, 15.8 million entries accepted — but also real problems: nearly one-third of CAPE declarations are failing validation, and thousands of approved refunds are stuck because importers have not provided ACH banking information.

The bigger news landed the next day, when Judge Richard K. Eaton issued two orders that escalate the court’s oversight of CAPE significantly. One directs CBP to show cause why it should not be forced to immediately refund ALL IEEPA tariffs — including on finally liquidated entries. The other orders CBP Commissioner Rodney Scott to appear in person in New York on June 9.

This post explains what is in both the May 26 report and the May 27 orders, and the four things importers should do between now and the June 9 hearing.

The May 26 Progress Report: What CBP Told the Court

CBP’s May 26 declaration updated the numbers from the May 11 baseline:

Metric	May 11 (7 a.m. EST)	May 26	Change
CAPE declarations submitted	126,237	Not separately reported	—
Entries accepted for IEEPA-duty removal	15,123,221	~15.8 million	+~700K
Refunds certified and sent to Treasury	$35.46B anticipated	$20.6B certified	Now real
Total pipeline (potential + certified)	—	~$85 billion	New metric
Additional entries reliquidated (2 weeks)	—	177,396	New metric
Average refund turnaround	—	~18 days (~14 days electronics)	New metric

The shift from “$35.46 billion anticipated” to “$20.6 billion certified” is important: the first number was what CBP expected to pay on already-liquidated entries; the second is what has actually been transmitted to Treasury for disbursement. The ~$85 billion figure represents the full CAPE Phase 1 pipeline — entries accepted but not yet through liquidation and Treasury certification.

The Validation Problem

CBP also reported, for the first time, how many CAPE filings are failing:

• ~33% of declarations (roughly one in three) fail initial file validation. Top causes: importer-of-record or filer mismatches, entry numbers of incorrect length or nonexistent, and CSV files not matching the ACE template.
• ~22% of entries that pass file validation subsequently fail entry-level validation. Top causes: entry date beyond CBP’s 90-day reliquidation authority, missing Chapter 99 HTSUS number, and duplicate filing on a prior CAPE declaration.
• Thousands of approved refunds have not been transmitted to Treasury because the importer of record or designated 4811 party has not provided ACH account information — consistent with the 1,880 stuck refunds CBP reported on May 11.

The validation failure rate is high enough that CBP’s own report treats it as a systemic problem, not a filer-education issue. If you have not yet filed, our CAPE validation error code reference and CSV preparation guide cover the mechanical fix for each common rejection.

The May 27 Orders: What Judge Eaton Did

The day after CBP’s report, Judge Eaton issued two orders — one in the original IEEPA lawsuit (V.O.S. Selections) and one in Euro-Notions Florida, the case the CIT is using as a vehicle to manage refunds for importers who did not sue.

Order 1: Show Cause on Immediate Compliance

Judge Eaton ordered CBP to submit a brief by June 4 explaining why the court should not lift the suspension on immediate compliance and require CBP to refund all IEEPA tariffs — explicitly including entries that liquidated more than 90 days ago.

The judge’s language is pointed. He wrote that he is “particularly concerned about the millions of informal entries where liquidation was simultaneous, or nearly simultaneous, with the time of entry, and for which the liquidation is now final.” He noted that CBP has offered no proposal to address those entries.

This is significant because the government’s current litigation position — as reflected in the settlement conference summary — is that refunds for entries beyond the 90-day reliquidation window will only happen “if the importers sue.” The show cause order directly challenges that position by asking why CBP cannot administratively refund those entries.

Order 2: Commissioner Scott Must Appear in Person

Judge Eaton ordered CBP Commissioner Rodney Scott to personally appear in court in New York on June 9, 2026 to explain when CBP will comply with the order to reliquidate entries and remove IEEPA duties.

Trade attorney Ted Murphy described the order as a sign of judicial displeasure: it is “very unusual to require the Commissioner of CBP to testify.” Federal judges rarely summon agency heads to appear personally — it is a step reserved for situations where the court believes the agency is not taking its orders seriously enough.

The New Calendar

Date	Event
June 4	CBP’s show-cause response due
June 6	DOJ deadline to appeal the CIT refund order
June 9	Hearing — Commissioner Scott ordered to appear in person
June 10	Next CAPE progress report due
June 11	Closed settlement conference

This is now the densest two-week period in the CAPE timeline since the April 20 launch.

What the Orders Mean for Three Entry Profiles

Profile 1: Phase 1 Eligible, Not Yet Filed

Nothing changes for you operationally. File now. The show cause order does not affect Phase 1 processing, and the validation failure rates CBP reported mean that waiting only increases the risk your entries cross the 80-day reliquidation deadline while you are still fixing CSV errors. Use our CAPE submission walkthrough and file this week.

Profile 2: Phase 1 Eligible, Filed and Accepted

Monitor, and confirm ACH. The May 26 report confirms that thousands of accepted, liquidated refunds are stuck because of missing ACH information. Pull ES-022 and REV-615 to confirm your claim status and refund stage. See our ES-022 / ES-701 tracking guide and ACH enrollment guide.

Profile 3: Finally Liquidated, Outside Phase 1

This is the profile most affected by the May 27 orders. The show cause order improves the odds of an administrative path, but it is not a guarantee. The government’s litigation position remains that you need to sue to recover. The safest approach between now and June 9:

1. Inventory your finally liquidated entries by liquidation date, IEEPA duty amount, and whether a protest was filed.
2. Consult trade counsel on whether to file a CIT complaint — especially if your exposure is material. The two-year statute of limitations under 28 USC § 1581(i) is running, but filing now puts you in the early wave if the government’s “sue to recover” position holds.
3. File protective protests on any entries still within the 180-day window from liquidation — this is a separate backstop from whatever the CIT decides.
4. Watch the June 4 response — it will signal whether CBP plans to voluntarily expand Phase 2 or intends to defend the Phase 1 boundary in court.

For the full decision framework on finally liquidated entries, see CAPE, protest, or CIT — which path fits your entries and our finally liquidated entries CIT path guide.

The DOJ Appeal Wildcard

DOJ has until June 6 — two days after CBP’s show-cause response and three days before the Commissioner’s hearing — to appeal the CIT refund order to the Federal Circuit.

The timing is awkward for the government. Filing an appeal that argues refunds should be narrower while simultaneously being ordered to explain why refunds are not happening fast enough creates a contradictory posture. Trade attorneys are split on whether DOJ will file a notice of appeal, let the deadline pass, or seek an extension.

If DOJ appeals, the Federal Circuit would review the CIT’s refund order, potentially pausing the show-cause dynamic — but already-issued refunds would not be clawed back. If DOJ lets the deadline pass, the CIT’s refund directive becomes final, and Judge Eaton’s show-cause order gains significant force.

Four Actions for This Week

1. File CAPE for everything Phase 1-eligible now. The validation failure rates are high and the 80-day window keeps closing on more entries each week. Do not wait for June 9.

2. Confirm ACH banking is live in ACE. The May 26 report confirms this is still the single biggest disbursement blocker. Pull REV-613 to check for rejected ACH attempts. See our ACH failure fix guide.

3. Separate your finally liquidated entries and consult counsel. If the show cause order leads to a Phase 2 expansion, you want your entry data clean and your legal posture clear before the announcement — not after.

4. Calendar June 4, June 6, and June 9. The CBP response, DOJ appeal deadline, and Commissioner hearing will each shift the refund landscape. We will update this post and the CAPE Update Tracker on the home page as each event lands.

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CAPE Portal Guide is not a law firm, customs broker, or government agency. This article summarizes public Court of International Trade filings and trade-law commentary as of May 31, 2026. For decisions affecting specific entries, consult a licensed customs broker or trade attorney.