Starting Monday, businesses that were subjected to International Emergency Economic Powers Act (IEEPA) tariffs declared unconstitutional by the Supreme Court can begin claiming refunds. The Customs and Border Protection (CBP) is set to launch an online portal to facilitate this process.
Importers and their brokers can begin submitting refund claims via an online portal starting at 8 A.M. ET.
The Process
U.S. Customs and Border Protection (CBP) has launched the Consolidated Administration and Processing of Entries (CAPE) portal within the Automated Commercial Environment (ACE) system. Under the new process, Importers of Record and authorized customs brokers must create an ACE account, submit bank account details, and file a required "CAPE declaration" to initiate claims for duties already paid.
CBP has issued guidance to help the trade community prepare for its new CAPE tool. Importers and brokers can visit CBP's website for resources and step-by-step instructions to use the system effectively.
It has also indicated that the approved claims are expected to be processed within 60 to 90 days from application. However, the timeline may extend if submissions contain inaccuracies or raise compliance concerns, potentially delaying refunds.
Refund Rollout Limits
Around 330,000 importers paid an estimated $166 billion in duties as of March 4, according to a CBP court filing. However, by April 9, only about 56,500 importers eligible for refunds up to $127 billion, including interest, had enrolled for electronic payment, a mandatory step to receive funds.
Not all enrolled importers qualify in the initial rollout, as Phase 1 of the refund system is restricted to specific unliquidated entries and those within 80 days of liquidation, limiting early access to refunds.
Do Customers Get Anything?
The process underlines no obligation for importers to pass the money on to consumers. Costco Wholesale Corp. (NASDAQ:COST) faces a proposed nationwide class-action lawsuit filed in federal court in Illinois by shopper Matthew Stockov. The lawsuit seeks refunds for customers who paid higher prices before tariffs were struck down, aiming to force Costco to pass on any tariff refunds it receives.
FedEx (NYSE:FDX) told Fortune it is focused on helping customers navigate regulatory changes, coordinating with them as CBP begins issuing refunds, and plans to start submitting claims from Monday.
Path For Tariff Refunds
This development comes after a long legal battle against the tariffs imposed by the Trump administration. While the Supreme Court did not specify how tariff refunds under the IEEPA should be handled, the U.S. Court of International Trade last month directed the administration to kickstart the reimbursement process.The Supreme Court’s ruling and the subsequent refund process marked a major victory for importers and their customers, who were adversely affected by these tariffs.
However, the complexity of the refund process and potential delays mean that businesses and consumers may have to wait a while before they see any money back.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Image: The Burlington Free Press-Imagn Images
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