ITSA presses CBP on IEEPA tariff refunds for sureties

Last verified: September 30, 2026 (PT)

When an importer defaults on U.S. Customs duties, a customs surety may pay CBP under the bond. If those duties later become refundable — as with court-driven IEEPA duty refunds — the practical question: who gets the money back?

What InsideTrade reports (public teaser)

On September 28, 2026, InsideTrade reported that U.S. Customs and Border Protection has “assured” the International Trade Surety Association (ITSA) it plans to refund bond issuers for IEEPA tariffs they paid in place of importers that defaulted on entry fees — but that ITSA is still “concerned” CBP is not actively developing a system to make those payments, and that ITSA told a federal judge as much last week.

Pending — paywall: Only the public teaser was retrieved. Full InsideTrade body requires a subscription; treat deeper detail as unverified.

What CBP’s CAPE process says today

CBP’s IEEPA Duty Refunds page and CAPE information notice describe CAPE (Consolidated Administration and Processing of Entries) in the ACE portal as the electronic path for valid IEEPA refund requests authorized by court order or applicable law.

Per those primary materials:

• Who may file a CAPE Declaration: the Importer of Record (IOR) for the listed entries, or the customs broker that filed the entries on the IOR’s behalf.
• Who receives refunds (as designed): the IOR, or a designated CBP Form 4811 “notify” party if set up to receive refunds on the IOR’s behalf.
• Sureties are not listed among CAPE Declaration filers on the materials retrieved for this draft.

Cargo Systems Messaging Service (CSMS #68340863, April 2026 CAPE Phase 1 guidance) separately instructs IORs and brokers: do not submit a CAPE Declaration for entries on which a surety paid IEEPA duties in whole or in part.

That instruction is a filing exclusion, not a published surety-refund workflow inside CAPE.

What 19 C.F.R. § 24.36(b) says (regulation, not a prediction)

The regulation ITSA cites provides, in substance, that refunds of excessive duties, taxes, fees, or interest are certified for payment to the importer of record unless (among other listed exceptions) a surety submits evidence of payment to Customs, upon default of the principal, of amounts previously determined due on the same entry or transaction. In that case, the refund is certified to that surety up to the amount it paid, or applied to other obligations of the surety.

Whether any surety meets the evidence test on any entry — and how CBP operationalizes it inside or outside CAPE — is not decided here.

Pending: Any later CBP CSMS, CAPE phase, or court order adding a live surety claim path or confirming automated exclusion of surety-paid entries.

What ITSA has told the CIT (party claims)

ITSA’s public September 3, 2026 amicus brief in Freestyle World, Inc. v. United States (Ct. Int’l Trade) — consistent with the InsideTrade teaser — claims (ITSA’s framing): members have paid millions in IEEPA tariffs after nonpayment; CAPE Phase 1 did not include sureties as filers; CBP has not advised whether surety refunds will appear in a CAPE phase or separate process; sureties supply surety-paid entry lists monthly but lack confirmation of removal from CAPE; and ITSA asks for a “Surety Paid” validation message, Phase 3 limits, or written exclusion confirmation. Those are party filings, not findings that IEEPA refunds were misdirected.

Desk takeaway (education only)

1. CAPE today is built around IORs and brokers — not sureties as CAPE Declaration filers (CBP primary).
2. CBP has told the trade to keep surety-paid IEEPA entries out of ordinary CAPE uploads (CSMS #68340863).
3. § 24.36(b) describes a surety certification path when evidenced post-default payment is submitted — process and eligibility for any file remain Pending confirmation from CBP/counsel.
4. ITSA is pressing the gap in court; InsideTrade’s teaser matches that posture (paywall Pending on the full article). Do not invent who will be paid, when, or how much.

Sources

1. Surety group: More needed to ensure bond issuers receive tariff refunds, InsideTrade, Sept. 28, 2026 (paywall Pending — public teaser only retrieved).
2. International Emergency Economic Powers Act (IEEPA) Duty Refunds, U.S. Customs and Border Protection (retrieved Sept. 30, 2026).
3. Consolidated Administration and Processing of Entries (CAPE) Information Notice, CBP, last updated July 10, 2026.
4. CSMS #68340863 — CAPE for IEEPA Refunds, April 20, 2026 Deployment, CBP (surety-paid entry exclusion instruction).
5. 19 C.F.R. § 24.36 (paragraph (b) surety evidence rule) — verify live eCFR text.
6. ITSA Amicus Curiae Brief, Freestyle World, Inc. v. United States, Ct. Int’l Trade No. 26-01088, Sept. 3, 2026 (RECAP PDF) — ITSA’s claims, not court findings.