The U.S. Supreme Court recently ruled that certain tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were illegal. As a result, U.S. Customs and Border Protection (CBP) has begun implementing a process to issue refunds to affected businesses. For some companies, this may provide an opportunity to recover cash from tariffs paid on imports over the past year.
CBP has launched the Consolidated Administration and Processing of Entries (CAPE) tool within its Automated Commercial Environment (ACE) portal to facilitate the refund process. According to federal court filings, CBP estimates that more than 300,000 importers paid approximately $166 billion in tariffs on over 53 million entries. But not all these tariffs will ultimately qualify for refunds.
Eligibility generally applies to the "importer of record." This term refers to the business entity that officially imported goods into the United States. In some cases, a customs broker that filed entries on behalf of a company may also play a role in the refund process.
If your business imports goods directly or uses a customs broker to handle import filings, there's a strong possibility you may qualify for a refund. It's important to note that consumers aren't eligible for tariff refunds.
For qualifying companies, these refunds are more than just minor reimbursements — substantial dollar amounts may be at stake. Refunds can help boost cash flow and profitability. You also may need to adjust your recent financial statements or amend previously filed tax returns, depending on how tariffs were originally treated. For example, tariff refunds may affect taxable income, deductions and/or inventory accounting.
Although CBP has introduced the CAPE tool to streamline claims, the process still requires careful coordination. Businesses should be prepared to:
In many cases, the customs broker who originally filed the entry may assist with tariff refunds. But companies shouldn't assume the process is being handled automatically. A coordinated approach expedites claims processing. It also helps prevent incomplete or inaccurate filings, missed deadlines, overlooked financial reporting, and unanticipated tax consequences.
If your business imports goods, now is the time to determine whether you may be eligible for an IEEPA-related tariff refund and what steps are needed to prepare a claim. This includes identifying who will be responsible for reviewing import activity, coordinating with customs brokers, gathering required documentation, and reconciling import data to your financial records.
Because CBP is processing refunds through its new CAPE process in phases, businesses should not assume refunds will be automatic. Entry details, supporting documentation, filing responsibilities, and timing all matter. Taking a proactive approach can help reduce the risk of missed entries, incomplete filings, financial reporting issues, or unexpected tax consequences.
To help businesses better understand the opportunity, Porte Brown will be hosting a 30-minute webinar on May 5 at 2:00 p.m. focused on the new IEEPA refund process.
During the webinar, we’ll cover:
Join us for “New IEEPA Refund Process: How to Claim Potential Tariff Refunds” on May 5 at 2:00 p.m.
Many U.S. businesses may have inadvertently paid IEEPA-related tariffs on recent imports without being aware that these duties could be eligible for refund through U.S. Customs and Border Protection's (CBP) new Consolidated Administration and Entries (CAPE) process. Join our upcoming webinar, designed to provide clarity on the tariff refund procedure for business professionals, finance leaders, and operations teams.
Learn how your business can assess eligibility and prepare for the refund process. Hear from Lisa Victoria Waller, President of BDG International, Inc., and Mark Gallegos, Partner at Porte Brown, as they discuss Phase 1 of the tariff refund process. Register Now
Get in touch today and find out how we can help you meet your objectives.
