Key Takeaways:
- Refund opportunity is significant, but limited to importers of record: Only entities that directly paid tariffs can file claims, regardless of cost pass-through.
- New CAPE portal introduces a structured but complex process: Claims require detailed data submission, eligibility validation, and active tracking through CBP’s system.
- Time-sensitive action is critical to maximize recovery: Initial eligibility is limited to recent or unliquidated entries, requiring prompt evaluation and submission.
Ongoing tariff volatility has materially impacted manufacturing costs, margins, and pricing strategies, making access to newly available refunds a significant financial opportunity.
After previous uncertainty surrounding the tariffs imposed under the International Emergency Economic Powers Act (IEEPA), businesses now have a formal pathway to recover those costs. This follows a February 2026 U.S. Supreme Court decision deeming the tariffs unconstitutional, and a subsequent order from the U.S. Court of International Trade directing the federal government to initiate a refund process.
In response, U.S. Customs and Border Protection (CBP) has launched a new system, the Consolidated Administration and Processing of Entries (CAPE) program, designed to manage what could amount to billions of dollars in refunds across millions of import transactions.
For manufacturers and distributors, many of whom have absorbed or passed along tariff costs, this represents a potentially meaningful financial recovery. However, realizing that opportunity will require a clear understanding of eligibility and a disciplined approach to the claims process.
Who Qualifies for a Refund?
The most important threshold issue is this: only the “importer of record” is eligible to claim a refund.
This distinction is critical. Even if your business ultimately bore the economic burden of tariffs, through higher input costs or reduced margins, you cannot file a claim unless your company was the entity that officially imported the goods and paid the duties to CBP.
For many manufacturers, particularly those relying on third-party suppliers or distributors, this creates added complexity. In these cases, potential recovery may depend on:
- Contractual provisions addressing tariff responsibility or recoveries
- Supplier willingness to share or pass through refunds
- Negotiated agreements or dispute resolution mechanisms
We are already seeing increased legal activity in this area, including class-action lawsuits related to tariff-related price increases. While outcomes remain uncertain, this reinforces the importance of understanding your contractual rights and exposure.
Understanding the CAPE Refund Process
While CBP’s CAPE system is intended to streamline refund processing, the actual steps involved are far from automatic. Businesses should expect a structured, multi-step process requiring accurate data and active management.
1. Confirm You’re Set Up to File
Before submitting a claim, businesses must:
- Be registered as an importer of record
- Have access to the ACE (Automated Commercial Environment) Secure Data Portal
- Ensure ACH (electronic payment) capability is established to receive refunds
2. Determine Eligibility (Phase 1)
The initial rollout of the refund program applies to:
- Unliquidated entries (entries not yet fully processed), or
- Entries liquidated within approximately the past 80 days
In practice, this may cover imports from roughly the past 10–12 months, though eligibility will vary based on specific transaction timing.
Future phases are expected to expand eligibility, but details remain limited at this stage.
3. Submit the Refund Claim
The filing process requires:
- Downloading a CBP-provided template
- Entering detailed transaction data, including 11-digit entry numbers
- Uploading and certifying the completed claim through the CAPE portal
Accuracy is essential. Incomplete or incorrect submissions may delay processing or result in denial.
4. Track and Monitor Your Claim
Once submitted, claims can be tracked through the portal. CBP has indicated that:
- Review and approval may take 60 to 90 days
- Refunds will be issued electronically upon approval
Given the volume of expected claims, timelines may evolve, and proactive monitoring is advisable.
Key Challenges for Importers
While the refund opportunity is significant, estimated at up to $166 billion in total tariffs paid, the path to recovery is not without obstacles.
Complexity and Administrative Burden
The process requires detailed historical data, system access, and internal coordination. For manufacturers with high transaction volumes, compiling and validating this information may be resource-intensive.
Supply Chain and Contractual Considerations
If your business is not the importer of record, recovery depends on third-party cooperation. This may require revisiting supplier agreements, engaging in negotiations, or, in some cases, pursuing legal remedies.
Timing and Phased Eligibility
With eligibility currently limited to more recent entries, businesses must act quickly to capture available refunds while also preparing for future phases that may expand coverage.
What Manufacturers and Distributors Should Do Now
To position your business to take advantage of this opportunity, we recommend the following immediate steps:
Assess Your Exposure and Eligibility
- Identify whether your business is the importer of record for relevant transactions
- Quantify tariff payments made during the potentially eligible period
- Evaluate which entries may qualify under Phase 1 criteria
Gather and Validate Data
- Compile entry-level import data, including entry numbers and payment records
- Reconcile internal records with CBP filings to ensure accuracy
Review Contracts and Supplier Relationships
- Analyze agreements with suppliers and distributors to determine rights to refunds
- Initiate discussions where recovery may depend on third-party action
Prepare for Submission
- Confirm access to the ACE portal and required system capabilities
- Establish internal ownership for managing the claims process
Monitor Developments
- Stay informed on additional phases of the refund program
- Track regulatory updates and potential changes to eligibility or procedures
Immediate Actions to Secure Your Tariff Refunds
For businesses navigating tight margins and ongoing cost pressures, tariff refunds represent a rare opportunity to recover meaningful dollars. However, this is not a passive process.
The combination of eligibility constraints, administrative complexity, and contractual nuances means that businesses that act quickly and strategically will be best positioned to benefit.
If you would like to discuss how these developments may impact your business or need assistance assembling and organizing your data, accumulating your tariff history, or guidance on how to navigate the claims process, our team is here to help.
Please do not hesitate to contact your Kreischer Miller relationship professional or any member of our team.