The U.S. government launched a new online system on Monday, April 20 through which businesses can apply for refunds of previously imposed tariffs.
According to CBS, the system is operated by U.S. Customs and Border Protection (CBP) and is called the “Customs Automated Processing and Entry system” (CAPE). Companies can submit tariff refund applications online through this platform.
In February of this year, the U.S. Supreme Court ruled that tariffs imposed by President Trump under the International Emergency Economic Powers Act (IEEPA) were unlawful. Based on estimates, the U.S. government may be required to refund up to $175 billion in tariff payments to businesses as a result.
Since the ruling was announced, companies have filed thousands of lawsuits with the Court of International Trade (CIT), seeking refunds of related tariffs. In its official statement, CBP said the CAPE system will provide an electronic channel to streamline the refund application process for IEEPA tariffs submitted under court orders.
In terms of operation, refund applications are primarily submitted by companies following established procedures. Industry insiders say that with the system now online, businesses have a clear process to follow for requesting refunds.
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According to regulations, only two types of entities are currently eligible to apply: companies that directly paid the IEEPA tariffs, and customs brokers who paid tariffs on behalf of importers. However, only the “importer of record” is ultimately entitled to receive the refund. Ordinary consumers, even if they paid higher prices due to tariffs, are not eligible to claim refunds.
As a result, several consumers have already filed lawsuits demanding that companies such as Costco and EssilorLuxottica (the parent company of Ray-Ban), once they receive tariff refunds, return part of the money to consumers.
However, some individual consumers are more likely to receive direct refunds from delivery companies such as FedEx and UPS, since these companies collect import duties directly from consumers during delivery. FedEx has stated that once it receives refunds from CBP, it will return the corresponding fees to customers.
Refund eligibility is limited
In addition, refund eligibility is limited. The CAPE system currently only accepts “unliquidated duties” (i.e., estimated duties still subject to adjustment) and duties that have been finally confirmed by CBP within the past 80 days. According to data, in the early stage of the system, about 82 percent of IEEPA tariff payments (approximately $127 billion) are eligible for refunds, while the remaining duties that have already been finalized or are under appeal are not included.
CBP data shows that as of April 9, more than 56,000 U.S. importers had registered to participate in the refund process. The scale of applications is expected to expand further as the system continues to operate.
Regarding refund timing, CBP stated that after approval, refunds are generally issued within 60 to 90 days. If additional documentation or adjustments are required, processing times may be extended. Sanne Manders, president of global trade and logistics company Flexport, said that issues such as incorrect coding in customs declarations are not uncommon, which may also slow down the refund process.
Flexport estimates that about 63 percent of tariff refunds may be completed within a few months, while the remaining 37 percent of cases could take years to resolve. There is still uncertainty regarding whether certain tariffs qualify for refunds.
At the same time, the market is closely watching the system’s performance. Some experts believe that as application volumes increase, further optimization of the system will be needed, but the overall framework has already provided a clear pathway for refunds.
In practice, some companies are also exploring more flexible financing arrangements. Certain financial institutions have begun offering services that purchase refund claims, providing companies with upfront funding while taking over the subsequent application process.
