What Every Importer Needs to Know About the Tariff Refund Process

Summary: Importers that recently paid certain tariffs under the International Emergency Economic Powers Act (IEEPA) now have a formal path to recover those costs. The U.S. Supreme Court ruled the IEEPA tariffs unlawful in February 2026, and the government's new CAPE refund portal opened April 20, 2026. Learn who qualifies and what you need in place to file.

For businesses that import goods, the past year has been a costly one. Tariffs imposed under the International Emergency Economic Powers Act (IEEPA) added real dollars to the cost of doing business, and many companies absorbed some or all of these costs while waiting to see how the legal landscape would shake out.

Now there is an answer, and an opportunity. In February 2026, the U.S. Supreme Court ruled that the use of IEEPA to impose sweeping tariffs was unlawful. In March, the U.S. Court of International Trade ordered refunds of those duties. And on April 20, 2026, U.S. Customs and Border Protection launched the Consolidated Administration and Processing of Entries system, known as CAPE, giving importers a formal path to request refunds of amounts paid.

The portal is live. The clock is running. Here is what you need to understand about the tariff refund process and how to protect your eligibility.

How Does the CAPE Tariff Refund System Work?

CBP built the CAPE portal inside the existing Automated Commercial Environment (ACE) platform that importers already use for entry filings and duty payments. Rather than processing refunds one entry at a time, CAPE is designed to handle IEEPA duty removals, recalculations and refunds at scale.

Phase 1 of CAPE launched April 20, 2026. In this phase, importers of record and authorized customs brokers can submit CAPE Declarations as CSV files through their ACE Secure Data Portal accounts. Each declaration lists entry numbers to be reviewed for refund eligibility.

CBP expects valid refunds to be issued within 60 to 90 days after a CAPE Declaration is accepted, provided there are no compliance concerns requiring further review.

Are You Eligible to File a Tariff Refund Claim?

Phase 1 eligibility is not universal. Before filing, importers should confirm each entry meets the following criteria:

• The entry exists in ACE
• The entry includes at least one IEEPA Chapter 99 tariff line
• The entry falls within Phase 1's 80-day liquidation timing window

Certain entry types, including reconciliation and drawback entries, are deferred to later phases. Missing the correct filing window can cost you the refund entirely, so careful review before submission is essential.

Note: Only the importer of record or the broker who filed the original entry may submit a CAPE Declaration. Responsibility for accuracy remains with the importer of record, regardless of who files.

What Do You Need in Place Before You File?

Eligibility and readiness are not the same thing. Before filing, confirm the following:

ACE Portal access: Importers of record and authorized brokers must have an established ACE Secure Data Portal account.

ACH banking setup: CBP issues refunds electronically. Your refund banking details must be on file in ACE separately from the banking used for duty payments. CBP will hold refunds until this setup is complete.

Clean entry data: Declarations are submitted as CSV files with a limit of 9,999 entries per submission. Accepted declarations cannot be amended. Missed entries require a separate filing.

Getting your data organized before you submit, rather than after, is the difference between a smooth refund and a costly delay.

What About Tariffs That Were Not Covered by IEEPA?

The CAPE system and the Supreme Court ruling apply specifically to the recent tariffs imposed under IEEPA. Tariffs imposed under other statutory authorities, including Section 232 of the Trade Expansion Act and Section 301, remain in effect and are subject to their own legal proceedings.

Importers in sectors such as semiconductors and pharmaceuticals, where separate tariff actions are underway, should be tracking those developments closely alongside the IEEPA refund process. The regulatory landscape continues to evolve, and different sets of tariffs require different strategies.

The Bottom Line for Importers

The tariff refund process represents a genuine opportunity to recover costs that have impacted your profitability over the past year. But the process requires deliberate action, not a passive wait. You need the right portal access, accurate entry data, and banking information on file.

We have been tracking these developments closely and working with clients on both the operational and tax implications of tariff changes. If you have questions about whether you qualify, how to prepare your filing or how to account for a refund, the Moore Colson Tax Team is ready to help.

FAQ

What is a tariff refund, and is it the same as a tariff rebate?

For practical purposes, yes. A tariff refund, sometimes called a tariff rebate, is a return of import duties already paid when those duties are later found to be unlawful, excessive or eligible for recovery under a specific program. In the current context, the refunds available through CBP's CAPE system apply specifically to duties paid under IEEPA, which the Supreme Court ruled unlawful in February 2026.

Is there a deadline to file a tariff refund claim?

CBP has not published a hard cutoff for Phase 1 submissions, but we suggest filing your claim as quickly as possible for several reasons. First, the earlier you submit, the quicker you are likely to actually receive the refund. Second, filing quickly could aid in preserving administrative protest rights.

Will I owe taxes on the tariff refund I receive?

Likely yes, at least in part. If you deducted tariff costs as a business expense in a prior year, the refund will generally be treated as taxable income in the year received under the tax benefit rule. The exact treatment depends on how the original costs were classified on your books, and it is worth working through with your tax advisor before the refund arrives.

Can I file a CAPE Declaration myself, or do I need a customs broker?

Either the importer of record or the authorized broker who filed the original entry must submit. If you typically work through a broker, coordinate with them now. Responsibility for accuracy stays with the importer of record regardless of who files, and accepted declarations cannot be amended.

We passed tariff costs on to our customers. Do we owe them the refund?

Not automatically, but your contracts will determine the answer. Pricing agreements, supply contracts and intercompany arrangements may include price adjustment or indemnification clauses that create an obligation to pass some or all of the recovery back. Review those terms before assuming the refund is entirely yours to retain.