Judge Eaton Certifies Request for IEEPA Class Action Suit
Court of International Trade Judge Richard Eaton certified a request for a class action suit under Rule 23(b)(2) in the lead case, Freestyle World, Inc. v. United States, for refunds of duties imposed under the International Emergency Economic Powers Act (IEEPA), according to an October 8 opinion. Certification under USCIT Rule 23(b)(2) does not permit a potential class member to either opt in or opt out.
Plaintiff Freestyle World moved for class certification in June. After two oral arguments regarding class certification at the trade court — one in the V.O.S. Selections case and the other in the Freestyle World case — Eaton certified a class that includes: “All importers of record who paid duties imposed by the Challenged Tariff Orders between February 1, 2025, and February 19, 2026, excluding any entity that has separately filed an action seeking to recover IEEPA duties payments.”
This decision matters for importers seeking IEEPA refunds because it creates a possible way to get refunds without filing their own lawsuits. All importers in the certified class are included automatically and cannot opt out. However, the decision only certifies the class for now; it does not yet require CBP to issue refunds. Additional court actions will decide what relief is provided and how it will be carried out.
Judge Eaton will hold a closed conference with the parties on October 13, 2026. The government has until October 22, 2026, to respond to the class action complaint.
CAPE Phase 3 Launched October 6
Customs and Border Protection (CBP) notified the Court of International Trade (CIT) in a declaration filed on October 6 that it has initiated Phase 3 of the CAPE Process. Phase 3 covers finally liquidated entries where the importer has filed suit with CIT and CIT has ordered reliquidation.
CBP advised that they have already notified, via email to their counsel, all plaintiffs who had submitted a valid importer of record number to CBP by July 30 that CAPE declarations may now be filed for finally liquidated entries. Additional instructions will be sent to any plaintiffs who provide an IOR number after July 30.
Additional Verification Step for ACH Refund Changes Starts October 10
CBP has advised via CSMS message that beginning October 10 they will be requiring either email or SMS verification for ACH refund information changes made in the ACE Portal. Once the update is live, users will receive a security token via email with the option to also receive it via SMS message. This verification will be required to successfully complete the ACH information change.
Proposed Rule Creates Low-Value Imports Framework, Formalizes Entry Type 13
On October 7 CBP issued a proposed rule that will create a framework for low-value imports and formally establish informal Entry Type 13 for merchandise imported through the mail.
In the rule, CBP proposes modifications to the entry process for shipments valued at $2500 or less that would require entries to be filed electronically as either an Entry Type 11 or 13 (if sent via mail) upon or prior to the date of importation and require identification of the final deliver-to party if it is different from the ultimate consignee on the entry summary. The proposed changes would also remove the lower value requirements for entries classified under Chapter 99 Subchapters III and IV, making them eligible for informal entry so long as they do not exceed the $2500 informal limit. New bonding requirements are also proposed. Consignees that are not owners or purchasers will be required to appoint a customs broker to act as the importer of record for these shipments. Entries under $800 appear to be excluded from this.
Additional data for Entry Type 13 is also required under the proposed ruling including the identity and address of the shipper. Any mail articles where entry is not filed within 15 days will be deemed voluntarily abandoned.
Comments on the proposed rule must be received on or before December 7 and may be submitted through the Federal eRulemaking portal. To view the full notice, please visit the Federal Register.