CBP Finalizes Duty Refund Program

Importers could soon be reimbursed for US imports as the CBP finalizes duty refund program for IEEPA tariffs. On February 20, the Supreme Court deemed President Trump’s International Emergency Powers Act (IEEPA) levies illegal in a 6-3 ruling. Following the ruling, the Court of International Trade (CIT) ordered the US Customs and Border Protection (CBP) to issue refunds to importers that paid IEEPA tariffs that the CBP did not finalize by liquidation. Due to the high refund request volume, the CBP responded that it would need 45 days to finalize the system. On March 12, the CBP provided a new outline to a CIT judge of a refund process called CAPE.

How Will The CAPE Claim Port Assist With Refunds?

CAPE, or Consolidated Administration and Processing of Entries, is a system where importers can submit IEEPA refund requests. Despite still being in development, the system will be an online portal with ACE functionality and have four components, including:

• Claim Portal – Over 70% done.
• Mass Processing: – Over 40% done.
• Review and Liquidation/Reliquidation: Over 80% done.
• Refund: Over 60% done.

In the Claim Portal, importers will submit refund requests, and once validated, the system will remove all IEEPA levies from the entries. After removal, a standard validation procedure will calculate the total duties owed without the tariffs. Following the mass processing, the system will schedule liquidation for a certain number of days following the acceptance date. After liquidation, the refund process will transfer the refund amounts back to the importers.

What Can Shippers Expect As CBP Finalizes Duty Refund Program?

Although the CAPE system has not been finalized, it could result in over $100 billion in refunds. The CBP noted that since Trump imposed IEEPA levies, over 300,000 importers made approximately 53 million entries. Despite the opportunity, importers must act quickly to gather any entry summaries and submit refund requests. They should also file properly, which can be done by coordinating with a customs broker. Despite the refunds, President Trump has found other ways of issuing tariffs, such as Section 122. Trump has also initiated Section 301 investigations into key US trading partners, which could result in additional future tariffs.

With the IEEEA tariffs revoked, it is an ideal time to import into the US. However, shippers should still take precautions when importing during this time. Failure to import correctly can lead to delays and monetary loss. In addition to staying current with regulations, this can be done by speaking with a customs broker. Customs Brokers are licensed individuals or corporations that arrange customs clearance on behalf of the shipper. They do this by offering a range of solutions, including ensuring regulatory compliance, preparing paperwork, calculating duties, and more. Speak to our brokers at info@a1wwl.com or 305-423-9456 about successfully importing into the US from anywhere in the world.