{"id":8637,"date":"2026-10-21T11:48:07","date_gmt":"2026-10-21T09:48:07","guid":{"rendered":"https:\/\/leyton.com\/us\/?post_type=article&#038;p=8637"},"modified":"2026-10-21T11:48:09","modified_gmt":"2026-10-21T09:48:09","slug":"ieepa-refunds-cape-phase-3-and-the-freestyle-world-class-action","status":"publish","type":"article","link":"https:\/\/leyton.com\/us\/insights\/articles\/ieepa-refunds-cape-phase-3-and-the-freestyle-world-class-action\/","title":{"rendered":"IEEPA Refunds: CAPE Phase 3 and the Freestyle World Class Action\u00a0"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><em>Status as of October 16, 2026. This is not legal advice. Confirm deadlines with trade counsel.<\/em>\u00a0<\/p>\n\n\n\n<h2 id=\"h-where-things-stand\" class=\"wp-block-heading\"><strong>Where Things Stand<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">On October 8, 2026, Judge Richard Eaton of the Court of International Trade (CIT) certified a nationwide importer class in <em>Freestyle World, Inc. v. United States<\/em> (Court No. 26-01088, slip op. 26-123). The class covers all importers of record who paid duties under the Challenged Tariff Orders between February 1, 2025, and February 19, 2026. Importers who have separately sued to recover IEEPA duties are excluded.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Membership is mandatory. Under Rule 23(b)(2) there is no opt-in or opt-out. Filing your own suit is effectively the only way to leave the class.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Certification is not a refund order. The class must still obtain a class-wide injunction directing U.S. Customs and Border Protection (CBP) to liquidate or reliquidate entries without the IEEPA duties. Judge Eaton said he is certifying the class \u201cin the hope, and expectation\u201d that this leads to refunds, but he has not yet ordered them.&nbsp;<\/p>\n\n\n\n<h2 id=\"h-upcoming-litigation-milestones\" class=\"wp-block-heading\"><strong>Upcoming Litigation Milestones<\/strong>\u00a0<\/h2>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>October 13, 2026:<\/strong> The court set a closed status conference. <em>[Confirm the outcome before publishing. I found no public reporting on what happened.]<\/em>\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>October 22, 2026:<\/strong> The parties must file a joint proposed scheduling order. It will set the date by which the government must answer or otherwise respond to the class complaint, along with further filing deadlines. Commentators do not expect a class-wide relief order before the government answers.\u00a0<\/li>\n<\/ul>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 id=\"h-anticipated-government-appeal\" class=\"wp-block-heading\"><strong>Anticipated Government Appeal<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The government is widely expected to appeal certification to the Federal Circuit. As of mid-October, commentators reported that it had not yet filed one. Its main arguments are that Supreme Court precedent bars universal relief for non-plaintiffs and that individualized refund calculations defeat class treatment. The CIT rejected the second argument, noting that differing refund amounts do not defeat commonality.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The practical effect is that class relief may take a while, and it could be reversed. Non-plaintiff importers with finally liquidated entries are already locked out of CAPE Phase 3, pending the government\u2019s separate appeal of the universal refund injunction. A class appeal would likely prolong that lockout rather than pause something currently available.&nbsp;<\/p>\n\n\n\n<h2 id=\"h-the-statute-of-limitations\" class=\"wp-block-heading\"><strong>The Statute of Limitations<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">Suits to recover IEEPA duties at the CIT are brought under 28 U.S.C. \u00a7 1581(i) and are subject to the two-year limit in 28 U.S.C. \u00a7 2636(i). Firms calculate the clock from when duties were paid, which puts the earliest deadlines in early February 2027. DWT cites February 4, 2027, and Faegre Drinker conservatively uses February 1, 2027.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Whether passive class membership tolls this deadline for individual claims is unresolved. <em>Freestyle World<\/em> argued that certification would give class members the benefit of tolling. However, I could not confirm that the certification order settles the point, so importers should not assume it does. <em>[Check the opinion text before asserting anything more definite.]<\/em> Miller &amp; Chevalier recommends filing individually before the deadline unless it becomes clear that class relief is available.&nbsp;<\/p>\n\n\n\n<h2 id=\"h-strategic-next-steps-for-importers\" class=\"wp-block-heading\"><strong>Strategic Next Steps for Importers<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Identify which bucket your entries are in.<\/strong> The suit-versus-class question matters mainly for <em>finally liquidated<\/em> entries (liquidated more than 80 days ago). Unliquidated entries, and entries liquidated within the past 80 days, can already go through standard CAPE without a lawsuit.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Check class coverage carefully.<\/strong> The class does not include:&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Duties paid after February 19, 2026. IEEPA duties were still collected through February 23, 2026.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Duties imposed under the Brazil and India IEEPA orders. These are not \u201cChallenged Tariff Orders.\u201d A separate class motion in <em>V.O.S. Selections<\/em> may cover them, but it is still pending.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Any entity that has already filed its own IEEPA refund suit.\u00a0<\/li>\n<\/ul>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h3 id=\"h-weigh-an-individual-lawsuit-against-waiting-nbsp\" class=\"wp-block-heading\"><strong>Weigh an individual lawsuit against waiting.<\/strong>&nbsp;<\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>Speed:<\/em> For importers with significant unclaimed refunds on finally liquidated entries, an individual CIT suit has been the fastest route. DWT reports that Judge Eaton has issued individual refund orders within about four business days of filing, absent pleading errors, and that CBP has granted Phase 3 access within about one business day of receiving the importer\u2019s information. That is fast, but not guaranteed. The government\u2019s appeal of the universal injunction is also still pending.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>Cost:<\/em> For smaller claims, filing fees and legal costs may outweigh the benefit, and remaining in the class may be reasonable.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><em>Timing:<\/em> Because tolling is uncertain, anyone relying on the class should decide well before February 2027 and not wait until the last week.\u00a0<\/li>\n<\/ul>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><strong>Prepare your data systems.<\/strong> Confirm your ACE account and your refund-payment setup are current so you can act as soon as a class order or individual order issues. <em>[I could not verify the ACH-specific requirement. Check CBP\u2019s CAPE guidance.]<\/em>\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"1\" height=\"1\" src=\"https:\/\/leyton.com\/wp-content\/blogs.dir\/4\/files\/2026\/10\/image-3.png\" alt=\"\" class=\"wp-image-8638\"\/><\/figure>\n\n\n\n<h3 id=\"h-summary-of-changes-from-the-original\" class=\"wp-block-heading\"><strong>Summary of changes from the original<\/strong><\/h3>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Reframed the October 13 conference as set, not completed, and flagged that its outcome is unconfirmed.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Corrected the claim that an appeal would pause Phase 3 relief for class members, who currently have no access.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Replaced \u201cguarantees\u201d and \u201cimmediate\u201d with the observed timelines.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Changed the tolling point from a definite statement to \u201cunresolved, verify.\u201d\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li>Added mandatory membership, the coverage exclusions, the 80-day split, and the cost consideration for smaller claims.\u00a0<\/li>\n<\/ul>\n\n\n\n<figure class=\"wp-block-image size-full\"><img decoding=\"async\" width=\"1\" height=\"1\" src=\"https:\/\/leyton.com\/wp-content\/blogs.dir\/4\/files\/2026\/10\/image-4.png\" alt=\"\" class=\"wp-image-8639\"\/><\/figure>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<h2 id=\"h-how-leyton-can-help-nbsp\" class=\"wp-block-heading\"><strong>How Leyton Can Help<\/strong>&nbsp;<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\">The class action may not deliver refunds for months, and the limitations clock for individual claims keeps running. Importers need to know now which entries are affected and which route fits each one. Leyton helps importers work through that decision.&nbsp;<\/p>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Entry and tariff review.<\/strong> Leyton\u2019s consultants review import data, tariff codes, duty payments, and entry status to identify which IEEPA payments may qualify for refund. They then estimate the potential recovery.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Refund pathway assessment.<\/strong> Entries are sorted by status: unliquidated or recently liquidated entries that can go through standard CAPE, and finally liquidated entries where the class-versus-individual-suit question applies. Leyton also prioritizes entries by applicable deadlines.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Documentation and data support.<\/strong> Leyton helps gather and verify the entry data and supporting records that a refund claim requires.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Coordination with your existing team.<\/strong> Leyton works alongside your customs broker, and does not compete with brokers. Leyton works with experienced lawyers and licensed customs specialists, who can advise on whether to file individually or stay in the class.\u00a0<\/li>\n<\/ul>\n\n\n\n<ul class=\"wp-block-list\">\n<li><strong>Success-based fees.<\/strong> Leyton works on a success-fee basis, with no upfront professional fees.\u00a0<\/li>\n<\/ul>\n\n\n\n<div style=\"height:20px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"wp-block-paragraph\"><em>To start with a free initial <strong><a href=\"https:\/\/leyton.com\/us\/ieepa-customs-tariff-refund\/\">IEEPA tariff review<\/a><\/strong>, contact Leyton\u2019s Trade &amp; Customs Recovery Team.<\/em>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Status as of October 16, 2026. This is not legal advice. Confirm deadlines with trade counsel.\u00a0 Where Things Stand\u00a0 On October 8, 2026, Judge Richard Eaton of the Court of International Trade (CIT) certified a nationwide importer class in Freestyle World, Inc. v. United States (Court No. 26-01088, slip op. 26-123). The class covers all [&hellip;]<\/p>\n","protected":false},"author":72,"featured_media":8641,"menu_order":0,"comment_status":"open","ping_status":"open","template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[91,409],"tags":[464,427],"expertise":[476,376],"class_list":["post-8637","article","type-article","status-publish","format-standard","has-post-thumbnail","hentry","category-international-en-en","category-tax-updates-en","tag-ieepa","tag-tariff-en","expertise-duty-and-tariff-recovery","expertise-news"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v28.1 (Yoast SEO v28.1) - https:\/\/yoast.com\/product\/yoast-seo-premium-wordpress\/ -->\n<title>IEEPA Refunds: CAPE Phase 3 and the Freestyle World Class Action\u00a0 - Leyton United States<\/title>\n<meta name=\"description\" content=\"Navigate IEEPA duty refunds under CAPE Phase 3 and the Freestyle World class action. 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