The U.S. government is preparing to launch an online portal next week to allow businesses to request refunds for tariffs that have been deemed illegal by the Supreme Court. However, the process will not be automatic, and businesses may encounter obstacles in reclaiming their money.
The portal, known as CAPE (Consolidated Administration and Processing of Entries), will be operated by the U.S. Customs and Border Protection (CBP). It will enable companies to submit claims for tariff refunds, with applications opening on April 20. Following the Supreme Court’s ruling in February, which deemed President Trump’s imposition of tariffs under the International Emergency Economic Powers Act as illegal, businesses could be owed up to $175 billion.
The refund process will target International Emergency Economic Powers Act (IEEPA) duty refund requests made in compliance with court orders and statutory authority. Eligible parties to apply for refunds through CAPE include businesses that paid IEEPA tariffs and customs brokers who covered duties on behalf of importers.
While the system provides a means for seeking compensation for illegal tariffs, it places the responsibility on U.S. importers to secure refunds that could amount to hundreds of thousands of dollars. Refunds are not automatic, and businesses must opt in and await approval from CBP. The portal is initially focused on unliquidated tariffs and those finalized within the past 80 days.
CBP aims to issue refunds for valid claims within 60 to 90 days after approval. However, delays may occur due to errors or inaccuracies that require corrections. To expedite the refund process, some importers are considering selling their refund claims to hedge funds and financial firms, providing immediate cash in exchange for administrative support.
Despite progress in setting up the refund system, concerns remain about its effectiveness. The launch of the tariff refund portal next week presents a significant milestone for businesses seeking to recoup funds lost to illegal tariffs.
