Trump administration set to launch tariff refund portal. Here’s what to know.

The U.S. government is gearing up to launch an online portal next week that will allow businesses to request refunds for tariffs that have been deemed illegal by the Supreme Court. This portal, known as CAPE (Consolidated Administration and Processing of Entries), will be operated by the U.S. Customs and Border Protection (CBP) and will provide a streamlined process for companies to submit claims for tariff refunds. The portal is set to open for refund applications on April 20.

Following the Supreme Court’s ruling in February that President Trump had unlawfully imposed tariffs under the International Emergency Economic Powers Act (IEEPA), it is estimated that the government could owe businesses up to $175 billion in refunds. In response to this landmark decision, thousands of companies have filed lawsuits with the Court of International Trade (CIT) seeking reimbursement for these illegal tariffs.

While CAPE will offer a mechanism for businesses to seek compensation for the illegal tariffs, it places the responsibility on importers to navigate the refund process. Importers, as well as customs brokers who paid duties on behalf of importers, are eligible to apply for tariff refunds through the portal. It is important to note that only the importer of record is entitled to receive a refund, and consumers who were impacted by higher costs on imported products are not eligible to submit claims.

Refunds through the CAPE portal are not automatic, and businesses must actively opt in and wait for CBP to process and approve their claims. The system will only accept requests for unliquidated tariffs and those that were finalized by CBP within the past 80 days. Approximately 63% of IEEPA duties are eligible for refunds through CAPE, while the remaining 37% of entries that have already been liquidated or are being protested are excluded.

CBP has stated that it will issue tariff refunds for valid claims within 60 to 90 days of approval, although delays may occur if claims contain errors or inaccuracies. Some trade experts have expressed concerns about potential challenges and uncertainties in the refund process, despite CBP’s efforts to establish a refund system.

For importers who may find the refund process burdensome, there is an alternative option available. Hedge funds and financial services firms are purchasing businesses’ tariff refund claims, providing immediate cash to importers while managing the administrative aspects of applying for a refund. This option may appeal to importers who require immediate cash flow and do not wish to wait for their refunds through the government portal.

As the tariff refund portal prepares to launch, businesses like Learning Resources, which estimates it is owed up to $12 million in refunds, are gearing up to submit their claims. While some importers may prefer a more streamlined and automatic refund process, the opportunity to recoup funds from illegal tariffs is a significant development for impacted businesses.