U.S. Businesses Can Now Apply for Illegal Tariff Refunds via New Online Portal

The U.S. government has opened a new online portal for businesses to apply for refunds of tariffs that the Supreme Court ruled were illegal. The portal, which launches on Monday, marks the first phase of the Trump administration’s efforts to comply with court orders to reimburse billions of dollars in paid tariffs and interest to importers.

Background and Context

The Supreme Court did not specify how the government should refund the tariffs paid under the International Emergency Economic Powers Act (IEEPA). However, the Court of International Trade ordered the administration last month to begin the reimbursement process.

How the Refund Process Works

U.S. Customs and Border Protection (CBP) is launching the Consolidated Administration and Processing of Entries (CAPE) portal through the Automated Commercial Environment (ACE) system. Companies must submit a “CAPE declaration”, which CBP states will streamline the submission and processing of valid refund requests for duties imposed under the IEEPA.

To participate, “Importers of Record” and authorized customs brokers must create an account on the ACE portal and submit their bank account information. The system requires importers and brokers to file claims for duties paid. According to a CBP post, refunds should be processed within 60 to 90 days of application submission.

However, delays may occur if there are inaccuracies or compliance concerns in the submitted claims.

Eligibility and Scope of Refunds

As of March 4, approximately 330,000 importers had paid estimated duties totaling about $166 billion, according to a CBP court filing. By April 9, only about 56,500 of these importers had completed the required enrollment for electronic payment—a necessary step to receive refunds.

Not all of these importers will be eligible for refunds in the first phase. The CBP states that Phase 1 is limited to certain unliquidated entries and entries within 80 days of liquidation.

Impact on Businesses and Consumers

As of November, a mix of firms and consumers bore 90% of the tariff burden, according to the New York Fed. While it remains unclear how much consumers will directly benefit from the refund process, some companies, including FedEx and Costco, have pledged to compensate affected customers.

Potential Legal Challenges Ahead

Costco filed a lawsuit in November seeking to block the tariffs and secure refunds for duties already paid. This lawsuit is among several consolidated by the trade court in response to the tariffs, which the court ruled were illegal. The administration may still appeal the trade court’s refund order.

Statements from CBP

“CBP has issued guidance to the trade community to help them prepare to use the new CAPE tool,” a CBP spokesperson said in a Sunday evening email. “Importers and brokers can visit CBP’s website for resources and step-by-step guidance.”

The CBP did not immediately respond to a request for comment on preparations for a potentially large volume of applications on the first day or measures to mitigate potential system glitches.

Key Takeaways

Following the Supreme Court’s decision to overturn the sweeping tariffs in February, Treasury Secretary Scott Bessent had previously predicted the refund process would proceed, though further details remain pending.