IEEPA vs. Section 301 vs. Section 232: What's Actually Refundable

Quick Summary When the Supreme Court ruled IEEPA tariffs unconstitutional in February 2026, it created a refund opportunity for over 330,000 U.S. importers. But only duties imposed under IEEPA are eligible. This guide breaks down the three overlapping tariff programs, explains what the CAPE refund actually covers, and shows importers how to identify their refundable amount entry by entry.

For companies importing from China or sourcing steel, aluminum, or auto parts, determining what is refundable requires careful review. Multiple tariff programs were imposed by the current administration, but only duties imposed under IEEPA are eligible for refunds. Accurately identifying which duties qualify is essential — incorrect claims will be rejected.

Three Tariff Programs, One Entry

Between February 2025 and February 2026, importers often faced multiple overlapping duties on a single shipment. Knowing the legal basis for each program is key to distinguishing refundable from non-refundable amounts.

Program	Legal Authority	What It Covers	CAPE Refund?
IEEPA Tariffs	International Emergency Economic Powers Act	Emergency tariffs on broad range of imports; struck down as unconstitutional by the Supreme Court, February 2026	Refundable
Section 301 Tariffs	Trade Act of 1974	Trade remedy duties on Chinese goods; imposed starting 2018 following USTR investigation; litigated and upheld separately	Not Covered
Section 232 Tariffs	Trade Expansion Act of 1962	National security tariffs on steel, aluminum, autos, copper, lumber, and semiconductors; applies regardless of country of origin	Not Covered

All three programs collect duties through the Automated Commercial Environment (ACE) system, but each has a distinct legal authority. Only IEEPA duties are being refunded as a result of this separation.

What the CAPE Refund Covers

The CAPE process removes only the IEEPA HTS Chapter 99 provision and its related duty from eligible entry summaries — specifically the 9903.01.xx subheadings listed on CBP Form 7501. CBP recalculates duties as if the IEEPA provision was never applied and refunds the difference, including interest.

The refund covers two specific IEEPA tariff layers, where applicable:

• The IEEPA reciprocal tariff — a 10% rate applied broadly under Executive Order 14257
• The IEEPA fentanyl/migration tariff — a 10%–20% rate applied specifically to Chinese goods under Executive Orders 14193 and 14194, depending on the entry date

Both tariffs are identified by 9903.01.xx Chapter 99 codes on the entry summary and are refundable through CAPE.

What Remains After the Refund

The following duties remain on each entry after a CAPE refund and are not recoverable through the current program:

Duty / Fee	Detail
Section 301 Duties	7.5% (List 4A) to 25% (Lists 1–3) on Chinese goods, with some categories higher after the 2024 review. Often the largest component of total duties paid for electronics, apparel, machinery, and consumer goods from China.
Section 232 Duties	25% for steel, 10% for aluminum, with additional duties on downstream products. A separate Section 232 structure applies to automotive imports. Rates apply regardless of country of origin.
MFN Column-1 Duties	Baseline Harmonized Tariff Schedule rates. Independent of emergency or trade remedy authorities and completely unaffected by the IEEPA ruling.
MPF & Harbor Maintenance Fees	Statutory charges assessed on the entered value of nearly all commercial imports. Remain payable regardless of tariff program outcomes.

The Stacking Problem for Chinese Imports

A Chinese-origin entry filed in late 2025 could have included up to five separate duty obligations. For example, an electronics component entry might have included:

Example: Electronics Component Entry — Late 2025

Standard MFN Duty	~2.5%
Section 301 List 3 Duty	25%
⟶ IEEPA Fentanyl Tariff (EO 14193/14194) Refundable	10%
⟶ IEEPA Reciprocal Tariff (EO 14257) Refundable	10%
Total Rate	~47.5%+

⚠ Common Filing Error Claims that include total duties paid — or any Section 301 or Section 232 amounts — will be rejected for that entry. The overall CAPE filing remains valid, but the affected entry must be corrected and refiled. Importers with stacked duties must review CBP Form 7501 entry by entry and isolate only the Chapter 99 subheading lines.

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USMCA Goods from Canada and Mexico

USMCA-qualifying goods from Canada and Mexico were exempt from some, but not all, IEEPA tariffs. While not subject to the reciprocal tariffs under EO 14257, duties were still collected on those goods under the fentanyl and migration tariffs (EOs 14193 and 14194).

⚠ Watch for Miscoded Entries from April–May 2025 Inconsistent ACE implementation of the USMCA exemption led to some qualifying entries being incorrectly coded, with reciprocal tariffs incorrectly collected. These amounts may be recoverable through CAPE — but identifying them requires an entry-level audit comparing classification and country of origin to the duty collected.

Section 301 Exclusions: A Separate Track

Some importers obtained product exclusions from Section 301 duties during USTR's exclusion processes between 2018 and 2024. These exclusions are unrelated to the CAPE refund program and do not affect IEEPA refund eligibility.

If an importer received a Section 301 exclusion on a product also subject to IEEPA tariffs, only the IEEPA tariff would have been paid during the exclusion period. The IEEPA portion remains refundable through CAPE. The exclusion reduces the total duty paid but does not change the CAPE refund amount.

Will Section 301 or Section 232 Duties Ever Be Refunded?

As of May 2026, no legal mechanism, pending legislation, or court proceedings requires CBP to refund Section 301 or Section 232 duties. Both programs have been extensively litigated and upheld in federal courts. Any future changes would require separate executive or congressional action, or a new court ruling specific to those authorities.

This question arises often because importers reviewing 2025 duty payments see Section 301 and Section 232 amounts that far exceed the IEEPA portion. Nevertheless, the CAPE refund can be substantial for many companies. Understanding what CAPE covers — and what it does not — helps set accurate expectations and prevents errors that could delay or reduce a claim.

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Identifying Your Refundable Amount

Importers can determine the refundable amount for each entry by following three steps:

1. 1
   Pull CBP Form 7501 for each entry filed during the IEEPA tariff period. This document is available through the ACE Portal or from your customs broker.
2. 2
   Locate the duty breakdown in boxes 35–37. Identify every line carrying a 9903.01.xx Chapter 99 subheading. The duty assessed on those lines, calculated at the applicable IEEPA rate against the entered value, is the refundable portion.
3. 3
   Confirm no other Chapter 99 codes appear that represent non-IEEPA tariffs. Section 301 and Section 232 duties are coded under Chapters 1–97 and do not appear in the Chapter 99 refundable range.

For high-volume importers, reviewing hundreds or thousands of entries is central to CAPE preparation. The CSV file submitted to CBP contains only entry numbers, so it is essential to verify the IEEPA-attributable duty for each entry before filing.

Incentify partners with a network of specialized law firms and advisors that help importers identify their refundable IEEPA duty, prepare accurate CAPE declarations, and navigate the filing requirements.

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This content is for informational purposes only and does not constitute legal or customs advice. Consult a licensed customs broker or qualified trade counsel regarding your specific entries and filing obligations.