SPESA Webinar: IEEPA Refund Process & Tariff Update

Event Recap

Overview

On July 15, 2026, SPESA hosted a webinar for its members (sewn product industry suppliers) focused on IEEPA tariff refunds and current tariff landscape updates. Luke Mathers and Ned Steiner from Sandler, Travis & Rosenberg, P.A., presented on IEEPA refund litigation, explaining the status of the CAPE (Consolidated Administration and Processing of Entries) phases, which U.S. Customs and Border Protection (CBP) uses to process refunds on unlawfully collected tariffs. They discussed the Supreme Court's decision striking down the President's authority to impose tariffs under the International Emergency Economic Powers Act (IEEPA), the ongoing litigation at the Court of International Trade, and the different phases of CAPE refunds with varying eligibility requirements. Ned also covered upcoming Section 301 forced labor tariffs set to replace Section 122 tariffs in late July, new investigations into Brazil and Vietnam, and updates on various trade actions including U.S.-China Board of Trade discussions and Section 232 tariffs. The presenters answered questions about classification issues, compliance concerns, and refund distribution practices, emphasizing that importers have no legal obligation to distribute refunds to customers. 

Speakers:

• Luke Mathers - International Trade Attorney, Litigation Practice Leader | Sandler, Travis & Rosenberg, P.A.

• Edward (Ned) Steiner - Managing Director, International Trade and Government Relations | Sandler, Travis & Rosenberg, P.A.

• Michael McDonald - President | SPESA

SPESA members who have signed up for communications have received an email with instructions on how to access the webinar slides and recording. If you need help accessing the member-only content, please email Marie@spesa.org. 

Section Recaps*

IEEPA Tariffs and Refund Litigation

The meeting focused on IEEPA tariffs and refund litigation, with Luke Mathers providing an overview of the current status and challenges. He explained that the Supreme Court had struck down President Trump’s previous use of IEEPA to impose tariffs, but key issues including refund distribution and de minimis exceptions remain unresolved. Luke detailed the CAPE program, which CBP implemented to process refunds for eligible entries, though anti-dumping and countervailing duty entries face delays due to administrative complexities. The discussion highlighted ongoing litigation at the Court of International Trade regarding refund procedures and challenges with entries subject to suspended liquidation. A key takeaway from the discussion: Do not sit on your rights hoping that CAPE will solve your problems. Importers should be prepared to protest liquidations of entries to preserve refund rights.

CAPE Phases for IEEPA Refunds

Luke discussed the CAPE phases for processing IEEPA refunds, explaining that Phase 1 covers unliquidated entries or those liquidated within 80 days, Phase 2 covers entries flagged for reconciliation, and Phase 3 (launching in late July) will cover entries beyond 80 days liquidated with specific court requirements. He advised importers to continue monitoring liquidation dates, protest deadlines, and expected refund amounts, while emphasizing that CAPE is a voluntary process that doesn't preserve rights like protests or lawsuits do. Luke also addressed questions about suspended protests, increased CBP scrutiny through CF-28 requests for information, and the importance of maintaining proper documentation and verifying entry details before submitting CAPE declarations.

Tariff Classification and Section 301

Luke and Michael McDonald discussed the challenges with tariff classifications, particularly regarding automatic sewing machines, and explored potential actions SPESA could take to help define product classifications and advocate for proper classifications through industry publications and protests. Ned Steiner presented an overview of the Section 301 tariffs, explaining that these tariffs are set to replace the current Section 122 tariffs and will likely go into effect in late July, covering approximately 99% of U.S. imports by value. The discussion included details on which countries are included or excluded from the tariffs, as well as potential legal challenges to the administration's approach.

Trade Tariffs Updates and Discussions

The meeting focused on updates and discussions regarding various trade tariffs, including Section 301 and Section 232 actions, as well as ongoing investigations involving countries like Brazil, Vietnam, and Germany. Key points included the potential expiration of Section 122 tariffs on July 24th and the possibility of replacing them with new forced labor tariffs, though this remains uncertain. Participants discussed the process for evaluating current tariffs, the political implications of recent changes, and the challenges in distributing refunds to customers due to tariffs. Questions were raised about potential impacts on specific industries, particularly regarding German manufacturing equipment, and the handling of refunds, with no legal obligation for importers to distribute refunds noted.

*Recaps compiled from webinar transcript

Future Webinars

SPESA looks forward to providing more webinars for its members and the sewn product industry. If you have any suggestions on topics you would like to see covered, please send them to Marie@spesa.org.

For information on SPESA membership, please reach out to Ambar@spesa.org.