On April 20, U.S. Customs and Border Protection launched its online portal for businesses to claim tariff refunds. The first refunds are expected to be paid by May 11.
CBP’s refunds system, the Consolidated Administration and Processing of Entries or CAPE, uses the agency’s Automated Commercial Environment (aka ACE) portal to consolidate the computing required to calculate and issue refunds for the tariffs (including interest) issued last year under the International Emergency Economic Powers Act. Those duties were ruled illegal in February by the U.S. Supreme Court.
Customs and Border Protection reports receiving more than 11.2 million entries in the CAPE system so far, with more than 1.7 imports validated and ready for refunds. The agency expects the first refunds to be paid within two weeks, on or before May 11, according to an order published Tuesday at the U.S. Court of International Trade.
Around 80% of IEEPA entries overall are eligible for electronic refunds, and court documents suggest the refund process could cover about $166 billion in duties.
Applications are deemed eligible for a refund under Phase 1 of CAPE, according to reporting from Law360’s Anna Scott Farrell, if they meet the following criteria:
- The entry includes dutiable IEEPA HTS Chapter 99 codes.
- The entry is either unliquidated, or liquidated within the last 80 days.
- The entry is not flagged for reconciliation, covered by an open protest, part of a drawback claim, more than 80 days past liquidation, or subject to pending AD/CVD liquidation instructions.
The Trump administration has until June 6 to file an appeal of the February ruling against the tariffs.
ACE Portal Required To Receive A Refund
Branded merchandise importers interested in claiming tariff refunds must apply through the proper system:
- Importers must have an ACE portal account and will have to use it to apply for their tariff refund, according to CBP. They will also need to provide the ACE portal account with their bank account information in order to process the refund.
- CAPE declarations must be submitted through the ACE portal.
- Upon accepting the declaration, the CAPE software can calculate what the duty would have been without the IEEPA tariff, then determine a refund with applicable interest.
Unless a review of the specific request is required, importers should assume that valid IEEPA refunds will be issued within 60-90 days, according to CBP.
The refund process includes the following four steps:
- 1. Eligibility Review
- 2. CAPE Filing
- 3. CBP Review and Processing
- 4. Refund Issuance
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Although the rollout has proved fairly efficient, importers did report some issues with CAPE during its initial rollout. CBP will update its FAQ page with additional guidance to address those concerns and encourages members of the public to check back frequently. The agency’s next declaration on progress with the CAPE system is due to the court May 12.
Tariffs Are Not Off The Agenda
Meanwhile, the Trump administration is actively pursuing other tariff avenues:
- A blanket 10% global duty using Section 122 of the Trade Act of 1974 took effect on Feb. 24 and will expire July 24 without congressional action to extend it. At least one lawsuit has already been filed to challenge these Section 122 tariffs.
- The U.S. Trade Representative has announced multiple investigations of potential unfair trade practices and forced labor in more than 60 countries, a step toward imposing tariffs under Section 301, a law that has withstood legal challenges and provides a longer-term method that does not require congressional action.
Tariffs and trade policy were a big part of the Association’s message on Capitol Hill during the annual Legislative Education and Action Day on April 21. Almost 60 industry volunteers joined PPAI staff in Washington to advocate for clear and predictable trade policy and to educate lawmakers on how our global supply chain supports hundreds of thousands of American jobs.
PPAI will continue to advocate for predictable and balanced trade frameworks that support U.S. decoration, logistics and distribution jobs, says Alok Bhat, market economist and PPAI’s research and public affairs lead.
“In coordination with our lobbying partner, Thorn Run Partners, we are reinforcing Capitol Hill messaging that trade predictability protects American jobs across decoration, logistics and distribution,” Bhat says, “and we are closely monitoring any congressional action related to tariff authority.”
