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Recovering the 20% IEEPA Surcharge on Chinese-Origin Imports

Of the four IEEPA tariff regimes, China is the most layered — and the most easily misestimated. The IEEPA tariff under EO 14195 was a 20% "fentanyl" surcharge added on top of pre-existing Section 301 duties (and, where applicable, Section 232 steel/aluminum duties). CAPE Phase 1 refunds only the 20% IEEPA layer. This page explains how to isolate that layer on your CBP-7501s, what stays owed after the refund, and how to file.

The China stacking problem

For most Chinese-origin entries between February 2025 and February 2026, the duty stack looked something like this:

• Underlying HTS classification duty (varies by product)
• Section 301 List 1 / 2 / 3 / 4A duty (typically 7.5% to 25%)
• Section 232 steel or aluminum duty (where applicable, typically 25%)
• IEEPA "fentanyl" surcharge at 20% (EO 14195)

Each layer was assessed as a distinct Chapter 99 line on your CBP-7501. The Supreme Court's February 2026 ruling in Learning Resources, Inc. v. Trump only struck down the IEEPA authority. Section 301 (Trade Act of 1974) and Section 232 (Trade Expansion Act of 1962) were not affected. Your CAPE refund target is the 20% IEEPA line and only the 20% IEEPA line.

Are your Chinese entries CAPE Phase 1 eligible?

The standard Phase 1 eligibility rules apply:

• Eligible: Unliquidated entries with at least one IEEPA Chapter 99 line; entries liquidated within roughly 80 days of the filing date
• Excluded: AD/CVD entries (a major exclusion for many Chinese imports), drawback claims, pending protests, reconciliation entries, warehouse entries, suspended/extended/under-review liquidation

The AD/CVD exclusion is especially relevant for Chinese imports, which face active orders on a wide range of products (steel, aluminum, solar cells, furniture, tires, chemicals, seafood, and more). Any entry with an AD/CVD line is excluded from CAPE Phase 1, even if the same entry also paid IEEPA duties on a separate Chapter 99 line.

Country-specific factors for Chinese-origin importers

Refund estimation must isolate the IEEPA line

A common mistake is to estimate the refund as 20% of the merchandise value. The correct number is the dollar amount actually paid on the IEEPA Chapter 99 line — which is 20% of the value reported on that specific line. Use the entry summary, not invoice totals, when estimating with our refund calculator.

Section 301 exclusions and the underlying classification

If your entries had a Section 301 exclusion (under various USTR exclusion processes), the Section 301 line may have been suppressed or zero. The IEEPA line was assessed independently of Section 301 exclusion status — so even Section 301-excluded entries paid the 20% IEEPA layer and are CAPE-eligible refund candidates.

HTSUS reclassification disputes

If you have an active classification dispute on a Chinese entry — common for goods on the Section 301 line edges — that does not by itself disqualify the entry from CAPE. But the entry must not be in suspended liquidation while the dispute is pending. Check liquidation status before filing.

Your recovery options

• CAPE Phase 1 — for unliquidated and recently-liquidated Chinese entries without AD/CVD content
• Protest under 19 U.S.C. § 1514 — file within 180 days of liquidation as a parallel safeguard
• CIT litigation — for fully liquidated entries, AD/CVD-content entries, and other Phase 1 exclusions, a Court of International Trade lawsuit may be the only way to recover

Next steps

1. Pull all CBP-7501s for Chinese-origin entries with a date of entry between February 2025 and February 24, 2026.
2. Identify the IEEPA Chapter 99 line on each entry (within 9903.01.25 – 9903.01.70) and sum the IEEPA duty paid — not the total entry duty.
3. Filter out AD/CVD entries; flag them for separate protest or CIT consideration.
4. Verify customs broker has CAPE authorization on your importer account.
5. Use the 7-step CAPE filing guide or request a free assessment.

Get a free Chinese entries assessment

Chinese importer FAQs

Disclaimer: CAPE Portal Guide is not a law firm, customs broker, or government agency. China-origin entries often have multiple overlapping duty regimes; consult a licensed customs attorney or broker for entry-level decisions.