The U.S. Customs and Border Protection (CBP) launched an online portal Monday, allowing businesses to apply for refunds on tariffs ruled illegal by the Supreme Court. The Consolidated Administration and Processing of Entries (CAPE) portal, part of the Automated Commercial Environment (ACE) system, marks the first phase of the government's effort to reimburse billions of dollars in tariffs and interest paid under the International Emergency Economic Powers Act (IEEPA).
How the Process Works
Importers and authorized customs brokers must create an ACE portal account and submit bank account information to file claims. Refunds are expected within 60-90 days, though delays may occur if applications contain inaccuracies or compliance issues. Phase 1 of the refund system is limited to specific unliquidated entries and entries within 80 days of liquidation.
'Phase 1 is limited to certain unliquidated entries and certain entries within 80 days of liquidation,' stated a CBP post.
Impact on Businesses and Consumers
As of March 4, approximately 330,000 importers paid estimated duties of $166 billion, but only 56,500 had completed enrollment for electronic payment by April 9. While businesses and consumers bore 90% of the tariff burden, it remains unclear how much consumers will benefit from the refund process. Some companies, including FedEx and Costco, have pledged to compensate customers.
Potential Litigation and Challenges
Costco filed a lawsuit in November seeking to block tariffs and secure refunds, reflecting broader legal challenges. The Trump administration could also appeal the Court of International Trade's refund order. Treasury Secretary Scott Bessent previously warned the refund process 'could be a mess' lasting 'months or years,' but CBP is now handling what could be the largest tariff refund in U.S. history.