On October 8, Judge Richard Eaton of the U.S. Court of International Trade certified a class action in Freestyle World, Inc. v. United States. The class covers every importer of record that paid IEEPA duties between February 1, 2025 and February 19, 2026, except companies that have already filed their own refund lawsuits.
Why the court did it
CBP’s CAPE system has worked for most importers. As of October 2nd, about $126 billion in duties and interest had been refunded out of roughly $166 billion collected. But the court noted that if CAPE stopped today, around $30 billion would stay with the Treasury. It also observed that the importers who haven’t used CAPE are believed to be mostly small businesses, held back by cost, effort, or simply not knowing the program exists. The class is meant to reach them, along with older finalized entries that CAPE won’t take from importers who haven’t sued.
What it does, and what it doesn’t
Membership is automatic. There is no sign-up and no way to opt out, and class members are bound by the outcome. It is not a refund order. The court still has to issue an order directing CBP to process those entries without IEEPA duties. The government opposed certification, and its separate appeal over the court’s power to order refunds on finalized entries for importers who haven’t sued is still pending at the Federal Circuit.
One related update: CBP launched CAPE Phase 3 on October 6, but it is open only to plaintiffs in the 4,000-plus individual lawsuits. By October 7 it had accepted declarations covering about 1.1 million entries and $500 million in claimed refunds.
Refunds of IEEPA duties can only be paid back to the importer of record on the entry summary, or their customs broker if a valid CF4811 is on file. An unknown at this point is what happens to companies who may have sold or assigned their refund recoveries.
What we’re telling clients
- File what CAPE accepts now. Unliquidated and recently liquidated entries don’t need to wait on the class action.
- Check your ACE details. Make sure your importer information (Form 5106) and your ACH refund account are current. Mismatches and missing bank details are among the most common reasons refunds stall.
- List your older entries. Note every entry liquidated more than 80 days ago, with its date, so you know what’s riding on the class action.
- Talk with a trade attorney before deciding whether to sue. Filing your own case takes you out of the class. Several trade law firms point out that the two-year window to sue begins closing for the earliest entries in February 2027.
- Be wary of anyone charging a fee to “join” the class. There is nothing to join.
- Mercantile can help you file, or direct you to someone who can. There are some instances in which the matter of filing for a refund is straightforward, others where it is more complex and may require legal assistance. We’re happy to provide the service if possible, or provide a list of qualified individuals and companies who can.
What happens next
The court held a closed conference with the parties for October 13, and a proposed schedule is due October 22, including when the government must respond to the class complaint. We’ll update this post as things move.
Dates to Watch
- October 13, 2026: Closed conference with the parties
- October 22, 2026: Proposed scheduling order due
- Pending: Federal Circuit decision on the government’s appeal
- February 2027: Earliest entries start reaching the two-year deadline to sue
Contact Mercantile to Discuss Your Options
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This post is general information, not legal advice. Source: the Court of International Trade’s October 8, 2026 opinion and order in Freestyle World, Inc. v. United States, Court No. 26-01088. Read the full order: October 8, 2026 opinion and order (PDF).