The US has opened a refund window for Indian exporters who provided discounts during the period when the Trump administration imposed 50% tariffs on Indian goods. According to reports from The Times of India, refund applications opened on April 20 through a new digital platform, CAPE (Consolidated Administration and Processing of Entries), operated by US Customs and Border Protection. The refund process will be handled through US court orders, with authorities depositing money into importers' bank accounts, which in most cases will be customs agents. As per The Economic Times, the move follows a February 20, 2026 decision by the US Supreme Court, which struck down tariffs imposed during Donald Trump's presidency, ruling they lacked proper legal authority under the International Emergency Economic Powers Act (IEEPA). On Monday, US Customs and Border Protection (CBP) confirmed that the first phase of its refund-processing platform is now operational, with the system enabling importers and customs brokers to begin filing claims to recover duties previously paid.
As reported by The Times of India, in 80-85% of cases, the refund will be directed to buyers rather than customs agents. Fieo director general Ajay Sahai explained that it will be up to the buyers to refund the money to Indian exporters. According to The Economic Times, refunds will include interest and are expected to be processed within 60 to 90 days. However, the structure of the refund mechanism limits direct benefits for Indian firms, as only US-based importers who paid the tariffs are eligible to file claims. Exporters and consumers cannot claim refunds directly, though some firms like FedEx may choose to share refunds voluntarily. The refund platform is being managed by US Customs and Border Protection through its Consolidated Administration and Processing of Entries system, with the first phase covering businesses with unliquidated entries or import filings still under customs review. To receive payments, eligible parties must submit claims including shipment details, tariff classifications and proof of payment.
According to The Economic Times, estimates suggest that about $10–12 billion of the total refunds are linked to goods sourced from India. More than half -- around 53% of India's exports to the US were affected, particularly in labour-intensive industries such as textiles and apparel. These sectors are expected to account for roughly $4 billion of the India-linked refunds, while engineering goods may contribute a similar amount and chemicals could account for about $2 billion. The reciprocal tariff framework escalated quickly after its launch, with duties on Indian goods climbing from 10% in April 2025 to 25% by August 7, then surging to 50% by August 28, where they remained until early February 2026. US customs officials told a federal judge that businesses already eligible under the first phase are owed about $127 billion in refunds. According to the Global Trade Research Initiative (GTRI), Indian goods account for nearly $12 billion of the total refund pool, with textiles and apparel comprising around $4 billion of this amount.
According to The Times of India, the refund process is expected to favor large exporters, especially those with written contracts covering the issue. Pankaj Chadha, chairman of EEPC India, indicated that for exporters with long-standing relationships, there is a possibility of some recovery, though it remains subject to receiving money from the administration. As per The Economic Times, for Indian exporters, the opportunity lies less in policy support and more in deal-making. Companies that had priced contracts on a duty-paid basis may have a case to renegotiate terms with US buyers, including seeking partial rebate-sharing, revising prices, issuing credit notes, or restructuring future contracts to reflect the removal of tariff costs. According to international trade expert Ajay Srivastava from GTRI, any financial recovery for Indian firms will depend entirely on commercial negotiations with US buyers, with exporters potentially seeking shares of refunds through contract revisions, rebate-sharing agreements, or pricing adjustments. The agency is handling about 53 million entries filed by 330,000 importers, with importers required to submit claims through the CAPE portal with records linked to eligible entries, including customs filings, tariff payment history, and entry classifications. Supporting documentation such as invoices and tariff data may be used to demonstrate how costs were absorbed, with exporters with stronger bargaining power, particularly in textiles and engineering goods, better positioned to secure favourable terms in future transactions.
