Washington Report
Tariff Refund Process Ramps Up As Billions Returned To Importers
(Reprinted with permission from Furniture Today, part of BridgeTower Media network)
Washington, DC — The federal government has begun returning billions of dollars in tariff payments to U.S. importers following the Supreme Court’s decision earlier this year striking down a range of tariffs imposed under the International Emergency Economic Powers Act, or IEEPA.
According to recent court filings and as reported in the Guardian, U.S. Customs and Border Protection has already processed more than $20 billion in refunds, with tens of billions more expected in the coming months.
Estimates of the total refund liability range from roughly $130 billion to as much as $175 billion.
The refunds stem from the Supreme Court’s February ruling that President Donald Trump exceeded his authority when imposing sweeping tariffs under emergency powers without congressional approval. The decision invalidated tariffs affecting imports from China, Canada, Mexico and a broad range of other trading partners.
CBP launched its Consolidated Administration and Processing of Entries, or CAPE, refund system in April to begin handling claims from importers. The agency initially limited refunds to certain unliquidated entries and entries within 80 days of liquidation as part of a phased rollout.
Reuters previously reported that the first wave of refunds was expected to begin around May 11. Court filings later showed that millions of entries had already moved into the refund pipeline.
Large retailers, manufacturers and logistics companies have reportedly sought refunds, including Walmart, General Motors and FedEx.
At the same time, the process has faced complications. CBS News reported earlier this month that roughly 15 percent of submitted refund claims had been rejected because of filing issues or incomplete information. Other importers have complained about delays and a lack of transparency surrounding payments.
The refunds apply specifically to tariffs imposed under IEEPA and do not cover Section 232 tariffs, Section 301 tariffs or anti-dumping duties.
Despite the court ruling, the Trump administration has continued pursuing other tariff mechanisms, including temporary duties under Section 122 of the Trade Act of 1974 and potential future Section 301 actions.
(Editor’s note: developments were updated by Furniture Today as follows):
Effective June 29, CBP expanded its Consolidated Administration and Processing of Entries, or CAPE, refund process to cover an additional category of import entries that previously could not be submitted through the system. The change allows eligible importers and customs brokers to pursue refunds on more shipments that were assessed IEEPA tariffs.
The online portal is now accepting eligible Phase 2 claims, allowing importers and customs brokers to begin submitting newly eligible entries immediately. Trade advisors recommend that companies review their import records promptly to determine which shipments may now qualify before applicable filing deadlines expire.
For furniture importers, many of whom rely heavily on imported products and components, the expansion could increase the number of shipments eligible for refunds.
Trade advisors at Mowry & Grimson said the new process allows qualifying entries that are still in the reconciliation process to have IEEPA duties removed before reconciliation is completed, separating the refund from the reconciliation calculations and simplifying the process.
The expansion does not apply to every reconciliation entry, however. According to CBP, entries for which the reconciliation process has already been completed remain ineligible during this phase, though the agency has indicated those entries are expected to be included in a future update.
Importers should also pay close attention to filing deadlines. CBP said companies nearing reconciliation deadlines should prioritize completing those filings, noting that participation in the CAPE refund process does not replace or delay required reconciliation filings.
The agency also said the same eligibility rules established during the first phase of the rollout remain in place, meaning only qualifying entries that have not exceeded the applicable liquidation timeframes can be submitted through the expanded process.
The update comes as CBP continues expanding the refund infrastructure following court decisions striking down the IEEPA tariffs. The agency has been rolling out the CAPE system in stages as it works through what trade advisors have described as one of the largest customs refund efforts in recent years.
