Major shipping companies have begun filing claims for tariff refunds through the newly launched portal. UPS confirmed it is filing claims for refunds on qualifying tariffs through CBP's CAPE portal, stating that once federal government approves claims and issues refunds, it will reimburse customers who paid the levies. FedEx also pledged to repay customers who bore the cost of the levies, with the company stating its intent is straightforward: if refunds are issued to FedEx, it will issue refunds for IEEPA tariffs paid to shippers and consumers who originally bore those charges. DHL, which also started submitting claims as soon as the portal opened on Monday, said it will pass the refund to the party that originally paid the duties as it receives refunds. The shippers did not disclose the total amounts of the refunds they are seeking.
The United States Supreme Court (SCOTUS) struck down President Donald Trump's tariff regime in February under the International Emergency Economic Powers Act (IEEPA) of 1977, declaring it illegal. According to reports from Mint, this ruling has created a potential ₹166 billion refund opportunity for businesses that paid tariffs. Court filings show that over 3.3 lakh importers paid tariffs for upwards of 53 million shipments, making this one of the largest tariff refund cases in US history. The programme's phased rollout follows the Supreme Court's decision on February 20 to declare Trump's use of the International Emergency Economic Powers Act to impose import duties on goods imported from around the globe unlawful.
The US government launched the Consolidated Administration and Processing of Entries (CAPE) portal on Monday for businesses to apply for their share of the refunds. As reported by Mint, this portal will be launched in phases, with the first phase already operational. According to the US Customs and Border Protection (US CBP), businesses that paid IEEPA tariffs and customs brokers who paid on behalf of importers can apply for the refunds. However, refunds are not automatic - companies must apply through the portal and wait for their claims to be reviewed and approved. Andrew Caridas, partner at international law firm Perkins Coie, confirmed that "our clients have all been able to submit their CAPE Declarations without incident," with entries meeting phase one criteria already "reprocessed and seemingly scheduled for liquidation or reliquidation."
According to the CBP statement reported by Mint, refunds will be issued within 60-90 days following acceptance of the CAPE declaration, unless a compliance concern requires further review. All refunds must be paid electronically via Automated Clearing House (ACH) system. Applicants must also register their bank account details with the ACE Secure Data Portal to receive refunds. UPS confirmed it cannot issue IEEPA tariff refunds to payors until it receives the funds from CBP, stating that once the federal government approves the claims and issues refunds, it will reimburse customers who paid the levies. The company has established a process to issue refunds to payors after receiving funds from CBP.
Only a day after the portal's launch, President Trump told CNBC that he would "remember" businesses that have decided not to seek refunds. When asked whether large companies, such as Amazon and Apple, have chosen not to apply for tariff refunds because they are worried about "offending" him, Trump stated: "Brilliant if they don't do that. Actually, if they don't do that, they've got to know me very well." Only parties known formally as importers of record who made tariff payments or authorised customs brokers acting on their behalf can file for the duty refunds. Companies that have publicly said they would file for refunds include Costco, FedEx and Toyota, while more than 1,000 companies had filed lawsuits at the US Court of International Trade seeking refunds prior to the portal's launch. Following the Supreme Court ruling, Trump immediately imposed a temporary 10% tariff that is set to expire in July, and the administration is working to restore that revenue using other tariff authorities.
American consumers are unlikely to see benefits from the tariff refunds due to practical challenges, as reported by Mint. Jackson Wood, director of industry strategy for Descartes' Global Trade Intelligence business unit, told USA Today that companies "blew a giant hole in their profit statements" to pay tariffs and are unlikely to pass refunds to Americans. Kacie Wright, manager of Houghton Horns, a Keller, Texas-based musical instrument retailer, faced added costs from Trump's tariffs but isn't authorized to submit a claim for refunds, instead waiting for CBP to return money to shippers who acted as the importers of record on the company's behalf. Only two US companies - FedEx and Costco have stated they will pass some relief to consumers, but this will only come once they receive the refund. The limited consumer benefits are compounded by Trump's warning to companies that choose not to seek refunds, potentially discouraging businesses from passing savings to customers.
