Money

Feds have rejected 15% of businesses’ tariff refund claims

Since the launch of a government reimbursement portal on April 20, roughly 15% of tariff refund requests have been rejected by U.S. Customs and Border Protection (CBP), according to recent data. As of April 26, over 75,000 refund requests had been submitted by U.S. businesses and importers, with more than 47,000 claims totaling 11 million tariff payments successfully filed, as reported by CBP official Brandon Lord in a filing with the Court of International Trade.

The new tariff refund system, named Consolidated Administration and Processing of Entries (CAPE), was introduced by the agency in response to a Supreme Court ruling in February that struck down emergency levies imposed by former President Trump. The CAPE portal is currently accepting applications for finalized tariffs or estimated duties under the International Emergency Economic Powers Act.

Although some businesses have encountered issues with their refund submissions, such as errors or claims falling outside the designated parameters, attorney Nick Richards from Greenspoon Marder expressed confidence in the overall process. He commended CBP for the efficiency of the CAPE portal, noting that despite a few glitches during the initial launch, the platform is now operating smoothly.

In a statement, Lord confirmed that apart from a brief 18-minute pause on April 20, the CAPE functionality has been consistently available for importers and brokers. He emphasized that CBP has been proactive in optimizing resources and processing declarations through the portal.

Overall, the feedback on the CAPE system has been positive, with Richards acknowledging the agency’s swift implementation and effective rollout of the refund hub. He commended CBP for their efforts in streamlining the refund process and ensuring a seamless experience for users.

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