Businesses across the United States can begin applying for tariff refunds from Monday, following a court ruling that struck down a major set of import duties imposed under former President Donald Trump. The refund process is being handled by US Customs and Border Protection (CBP) through a newly-launched online system.
Refund process goes live
Importers and customs brokers can submit claims through CBP's portal starting 8 am. Applicants must declare goods on which tariffs were paid and later ruled invalid. Approved claims are expected to be processed within 60 to 90 days, though delays are possible.
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Refunds will be issued in phases, with more recent payments prioritised first.
Court rulings behind the move
The refund process follows a February 20 decision by the US Supreme Court, which ruled 6-3 that Trump exceeded his authority by imposing tariffs under emergency powers.
The court found that the move encroached on Congress's power to set taxes. A subsequent ruling by the US Court of International Trade confirmed that affected companies are entitled to reimbursement.
Scale of repayments
The refunds are expected to be the largest in US history. Court filings indicate that over 3,30,000 importers paid around $166 billion in tariffs across more than 53 million shipments, per News 18 report.
So far, about 56,497 importers have registered for CBP's system, making them eligible for roughly $127 billion in refunds, including interest. However, only certain payments, such as those not yet finalised, qualify in the first phase.
How claims will be processed
The process will run through the CAPE system, part of CBP's Automated Commercial Environment portal. Importers and brokers must submit bank details and documentation to receive payments.
"CBP has issued guidance to the trade community to help them prepare to use the new CAPE tool," a CBP spokesperson was quoted as saying by News 18. "Importers and brokers can visit CBP's website for resources and step-by-step guidance."
Challenges and concerns
Experts say accuracy in filings is critical. "If there is an entry on that file that does not qualify, it may cause the entire entry to be rejected, or that line item might be rejected by Customs," said Meghann Supino.
She added, "Like any electronic online program that goes live with a lot of interest, I would expect that there might be some hiccups with the program on Monday," and urged patience.
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Impact on businesses and consumers
While businesses hope refunds will ease financial pressure, concerns remain about delays. "My main concern is the turnaround time," said Brad Jackson. "A refund process that takes several months to complete doesn't solve the cash flow problem that it is supposed to fix."
Consumers are unlikely to directly benefit, as companies are not required to pass on refunds, though legal challenges on this issue are ongoing.
