Tariff Refunds are Coming: How to Claim Yours

The US Supreme Court recently struck down tariffs under the International Emergency Economic Powers Act (IEEPA), opening the door for refunds to businesses that paid those tariffs. While refunds are coming, there are many moving parts and challenges to manage.

Here’s what you need to know.

What Happened?

The U.S. Supreme Court ruled that tariffs imposed under the IEEPA exceeded presidential authority. In basic terms, the Court determined that emergency powers do not extend to imposing broad-based tariffs.

Shortly after the Supreme Court decision, the U.S. Court of International Trade took things a step further, ruling that the tariffs were not only unconstitutional, but must be refunded. This has set the stage for a massive administrative effort.

What the Refund Process Will Look Like

U.S. Customs and Border Protection (CBP), the agency that initially collected these tariffs, is now developing a formal refund process through its Consolidated Administration and Processing of Entries (CAPE) system to calculate and issue applicable refunds.

According to CBP, the process will include the following components:

Important note: Sign up now for Automated Clearinghouse (ACH) Refund, as CBP requires ACH enrollment to receive refunds.

Frequently Asked Questions About Tariff Refunds

Who qualifies for a refund?

U.S. importers of record who directly paid the tariffs, as well as consignees (those who take ownership of goods after they clear customs) may qualify for a refund. Eligibility is limited to tariffs imposed under IEEPA.

Are tariff refunds automatic?

No. Businesses will need to follow the CBP refund process.

How long will it take to receive a refund?

Timelines are uncertain and depend on administrative processes and claim volume.

Do tariff refunds include interest?

Yes, refunds will include interest, accruing from the date duties were deposited until the refund is issued.