[Federal Register Volume 91, Number 129 (Wednesday, July 8, 2026)]
[Notices]
[Pages 42207-42209]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2026-13771]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
[OMB Control Number 1651-0149]
Agency Information Collection Activities; Extension; Court-
Ordered Refunds Under the International Emergency Economic Powers Act
Worksheet
AGENCY: U.S. Customs and Border Protection (CBP), Department of
Homeland Security.
ACTION: 60-Day notice and request for comments.
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SUMMARY: The Department of Homeland Security, U.S. Customs and Border
Protection (CBP) will be submitting the following information
collection request to the Office of Management and Budget (OMB) for
review and approval in accordance with the Paperwork Reduction Act of
1995 (PRA). The information collection is published in the Federal
Register to obtain comments from the public and affected agencies.
DATES: Comments are encouraged and must be submitted (no later than
September 8, 2026) to be assured of consideration.
ADDRESSES: Written comments and/or suggestions regarding the item(s)
contained in this notice must include the OMB Control Number 1651-0149
in the subject line and the agency name. Please submit written comments
and/or suggestions in English. Please use the following method to
submit comments:
Email. Submit comments to: [email protected].
FOR FURTHER INFORMATION CONTACT: Requests for additional PRA
information should be directed to Seth Renkema, Chief, Economic Impact
Analysis Branch, U.S. Customs and Border Protection, Office of Trade,
Regulations and Rulings, 90 K Street NE, 10th Floor, Washington, DC
20229-1177, Telephone number 202-325-0056 or via email
[email protected]. Please note that the contact information provided
here is solely for questions regarding this notice. Individuals seeking
information about other CBP programs should contact the CBP National
Customer Service Center at 877-227-5511, (TTY) 1-800-877-8339, or CBP
website at https://www.cbp.gov/.
SUPPLEMENTARY INFORMATION: CBP invites the general public and other
Federal agencies to comment on the proposed and/or continuing
information collections pursuant to the Paperwork Reduction Act of 1995
(44 U.S.C. 3501 et seq.). This process is conducted in accordance with
5 CFR 1320.8. Written comments and suggestions from the public and
affected agencies should address one or more of the following four
points: (1) whether the proposed collection of information is necessary
for the proper performance of the functions of the agency, including
whether the information will have practical utility; (2) the accuracy
of the agency's estimate of the burden of the proposed collection of
information, including the validity of the methodology and assumptions
used; (3) suggestions to enhance the quality, utility, and clarity of
the information to be collected; and (4) suggestions to minimize the
burden of the collection of information on those who are to respond,
including through the use of appropriate automated, electronic,
mechanical, or other technological collection techniques or other forms
of information technology, e.g., permitting electronic submission of
responses. The comments that are submitted will be summarized and
included in the request for approval. All comments will become a matter
of public record.
Overview of This Information Collection
Title: Court-Ordered Refunds under the International Emergency
Economic Powers Act Worksheet.
OMB Number: 1651-0149.
Form Number: N/A.
Current Actions: Extension.
Type of Review: Extension.
Affected Public: Businesses.
Abstract:
Background
On February 20, 2026, the U.S. Supreme Court ruled in Learning
Resources, Inc. v. Trump that all tariffs imposed by the President
under the International Emergency Economic Powers Act (IEEPA), which
U.S. Customs and Border Protection (CBP) has collected pursuant to the
President's Executive Orders and associated provisions in the
Harmonized Tariff Schedule of the United States (HTSUS) since February
3, 2025, were unlawful. In so holding, the Supreme Court affirmed the
August 29, 2025 judgment of the U.S. Court of Appeals for the Federal
Circuit (CAFC) in V.O.S. Selections, Inc. v. Trump, which in turn had
affirmed-in-part, vacated-in-part, and remanded-in-part the May 28,
2025 decision of the U.S. Court of International Trade (CIT) in that
case. On March 2, 2026, the CAFC issued its formal mandate to the CIT.
On March 4, 2026, the CIT ordered in Atmus Filtration, Inc. v.
United States ``that, with respect to any and all
[[Page 42208]]
unliquidated entries that were entered subject to the IEEPA duties,
U.S. Customs and Border Protection is hereby directed to liquidate
those entries without regard to the IEEPA duties,'' and ``[a]ny
liquidated entries for which liquidation is not final shall be
reliquidated without regard to IEEPA duties.'' On March 5, 2026, the
CIT amended its March 4, 2026, order in Atmus Filtration, Inc. v.
United States to clarify that it applies to entries made ``subject to
the IEEPA duties imposed by the Executive Orders considered by the
Supreme Court in Learning Resources, Inc. v. Trump.'' On March 6, 2026,
the CIT suspended its March 4, 2026, order, as amended, ``to the extent
that it directs immediate compliance,'' to allow CBP time to develop an
automated tool capable of processing the unprecedented volume and value
of refunds covered by the CIT order. On the same day, the CIT also
ordered the government to provide periodic status reporting on this
development. The government submitted detailed status reports to the
court on March 12, 2026, and March 19, 2026.
On March 20, 2026, the CIT again amended its Amended Order of March
5, 2026, to clarify that it applies to ``any and all unliquidated
entries that were entered subject to IEEPA duties'' as well as to any
such ``liquidated entries for which liquidation is not final,''
provided, however, that ``nothing in this order addresses issues
concerning duty free de minimis treatment under 19 U.S.C. 1321 that are
otherwise before this Court'' in Axle of Dearborn, Inc. v. Department
of Commerce. The CIT's March 20, 2026 order continued to suspend the
Amended Order of March 5, 2026, ``to the extent that it requires
immediate compliance,'' and ordered that the government file another
status report on March 31, 2026, ``describing the progress Customs has
made toward the completion of a process to issue refunds of IEEPA
duties paid with interest,'' and join another closed settlement
conference with the Court later the same day to further discuss the
same. In accordance with this order, the government submitted a
detailed status report and attended a closed settlement conference on
March 31, 2026. On April 6, 2026, the plaintiff in Atmus Filtration,
Inc. v. United States filed a notice of voluntary dismissal in its
case, which the CIT granted on April 8, 2026.
On April 7, 2026, the CIT lifted the stay on Euro-Notions Florida,
Inc. v. United States, CIT Ct. No. 25-00595, another pending case
challenging the IEEPA duties, and issued an injunctive order
substantively identical to its March 4, 2026, order, as amended, in
Atmus Filtration, Inc. Accordingly, the Euro-Notions Florida, Inc. case
has replaced the Atmus Filtration, Inc. case as the test case for the
IEEPA refund process. On April 8, 2026, the CIT issued an order in
Euro-Notions Florida, Inc. ordering the government to file another
status update on April 14, 2026, regarding CBP's progress on the IEEPA
duty refund process and join another closed settlement conference with
the Court later the same day.
Specifically, the Department of Homeland Security (DHS) and CBP
have initiated the development of the Consolidated Administration and
Processing of Entries (CAPE) tool to handle the volume of tariff
refunds anticipated in the timeframe required by the CIT. While the CIT
has not set a timeframe to date, the Court has signaled that refunds be
issued as quickly as possible because of the accrual of interest.
Further, while the order to refund IEEPA duties with interest is
currently suspended ``to the extent that it requires immediate
compliance,'' the CIT is closely monitoring CBP's progress to timely
complete the development of CAPE and can lift the suspension of its
order at any time.
The tariffs assessed under IEEPA from February 3, 2025 to February
24, 2026 total an estimated $166 billion, with over 53 million entry
summaries requiring processing in order to issue accurate refunds with
required interest. Prior to CAPE, refunds were reviewed and processed
entry summary-by-entry summary. Given the volume and values of the
entries affected by the CIT order, CBP is unable to process the refunds
owed in a timely or efficient manner using the existing process.
The CAPE tool may be accessed through CBP's Automated Commercial
Environment (ACE), which is the CBP-operated system used to report,
manage, process, and track U.S. imports and exports.
The CAPE tool allows CBP to process multiple entry summaries by the
same importer on a single submission, which will lead to a single
refund for a given importer rather than multiple refund transactions.
Importers are able to file as many CAPE Declarations as they need.
Thus, potentially thousands of refund transactions can be consolidated
into a single payment that is directly deposited into an IOR's account
(or the account of their designated party) on file. The request for a
refund that is filed through CAPE is called a ``CAPE Declaration''.
The new CAPE tool allows--
Automated processes to be leveraged to the fullest extent
possible to segment risk and execute millions of mathematical
calculations with precision.
CBP personnel to focus on those refund CAPE Declarations
that are considered ``high risk'' due to the dollar values involved or
the risk profile of the IOR.
CBP personnel to determine with confidence which lines on
an entry summary are eligible for an IEEPA refund while ensuring the
remaining duties (including duties owed for antidumping/countervailing
duty (AD/CVD) remedies and Section 232 tariffs), tax, and fees that are
owed the U.S. government are retained and collected as usual.
CBP personnel to ensure that the precise duty owed to the
IOR is refunded directly to the IOR's account--no overpayments or
payments to an erroneous party.
IORs will submit the information related to their refund request to
CBP through the ACE Portal. Alternatively, IORs may have their
information submitted to CBP using a licensed customs broker. Brokers
are licensed through CBP to conduct customs business on behalf of their
IOR clients. In order to receive a refund through the CAPE process, the
IOR, or their designated broker, must have an active and up-to-date ACE
Portal account and supporting profile. If a broker is filing a CAPE
Declaration on an IOR's behalf, they must be the ``notify party''
designated in the appropriate ACE account. Only ACE account holders
will be able to file a CAPE Declaration through the CAPE tool.
Most small businesses do not have an ACE account and instead enlist
the assistance of a licensed customs broker to conduct business on
their behalf. They will continue to be able, and are expected, to use
their customs brokers for the IEEPA refunds process and CAPE. Based on
public comments received, CBP may develop an alternative process for
small businesses if it is determined that using ACE and CAPE is overly
burdensome for those businesses.
It is also important to note that the Federal Government no longer
disburses paper checks, but issues refunds electronically via Automated
Clearinghouse (ACH). The transition to electronic refunds is in line
with Executive Order 12247 and was implemented by CBP via the Interim
Final Rule (IFR) Electronic Refunds (91 FR 21) in January 2026. CBP is
currently holding refunds for filers who do not have an ACH account on
file in ACE. CBP will continue to do the same for IEEPA Refunds. As
noted in the IFR: ``If
[[Page 42209]]
an importer believes that one of the waiver criteria in 31 CFR part 208
applies and seeks payment of its refund via a U.S. Treasury check, the
importer must notify CBP's Revenue Division in writing at [email protected].'' CBP does not believe it is necessary at
this time to create a procedure outside the one established in the IFR.
The term ``Declaration filer'' will be used going forward to cover
both IORs who file their own IEEPA refund requests or their designated
licensed customs broker.
Previously Approved Emergency Changes
The following modified information collection listed below was
submitted to OMB for consideration of approval on an emergency
clearance, with the justification of an unanticipated event and reasons
to believe following the normal PRA process is likely to prevent or
disrupt the collection of information and cause public harm. CBP
welcomes public to comment on these approved changes.
To submit an IEEPA refund CAPEdeclaration, an IOR, or their broker,
will submit a Comma-Separated Values (CSV) file with a list of entry
summary numbers to the CAPE tool through the ACE Portal. Depending on
the CAPE Declaration, this file may contain only a few lines of data or
thousands of lines of data (there is a limit of 9,999 entries per CAPE
Declaration). If the file submitted is rejected based on the screening
and validation CBP will conduct prior to accepting a CAPE Declaration,
the Declaration filer will need to adjust their CSV file and resubmit.
CBP will issue technical guidance to filers to minimize the number of
rejections/resubmissions.
Although the CIT suspended its order ``to the extent that it
directs immediate compliance,'' the order indicates that this
suspension was based on the CBP declaration filed in that case on March
6, 2026, which declared that CBP anticipates that CAPE would be ready
April 20, 2026, and any delay would pose risks for CBP in following CIT
orders and for returning those duties deemed refundable with the end of
IEEPA.
Type of Information Collection: CVS File.
Estimated Number of Respondents: 330,000.
Estimated Number of Annual Responses per Respondent: 1.5.
Estimated Number of Total Annual Responses: 495,000.
Estimated Time per Response: 1 hour.
Estimated Total Annual Burden Hours: 495,000.
Type of Information Collection: CVS File Replacement.
Estimated Number of Respondents: 33,000.
Estimated Number of Annual Responses per Respondent: 1.
Estimated Number of Total Annual Responses: 33,000.
Estimated Time per Response: 0.5 hours.
Estimated Total Annual Burden Hours: 16,500.
Seth D. Renkema,
Branch Chief, Economic Impact Analysis Branch, U.S. Customs and Border
Protection.
[FR Doc. 2026-13771 Filed 7-7-26; 8:45 am]
BILLING CODE 9111-14-P