First Phase of Tariff Refund Process to Begin on April 20
The U.S. Customs and Border Protection (CBP) will launch the first phase of the tariff refund process on Monday, April 20.
The process is a result of the February 20 U.S. Supreme Court decision that the Trump administration does not have authority to impose tariffs under a national security law.
The process will be via the Consolidated Administration and Processing of Entries (CAPE) tool in the Automated Commercial Environment Secure Data Portal (ACE Portal).
The U.S. Supreme Court ruling upheld a lower court’s decision that the President’s use of the statutory International Emergency Economic Powers Act of 1977 (IEEPA) exceeded his authority and did not grant the President the power he claimed to impose tariffs.
Tariffs are taxes and thereby authorized by Congress. IEEPA had previously been used only to impose sanctions.
CBP said that CAPE will simplify the IEEPA duty refund requests made pursuant to court order and in accordance with appropriate statutory authority by providing an electronic pathway to submit valid IEEPA duty refund claims.
The Supreme Court justices did not order refunds, nor address the extent to which the approximately 300,000 importers of record (of which approximately 200,000 are small importers) are entitled to refunds, or how the refund process would work. The court left the question to be answered by other entities, such as the U.S. Court of International Trade, the U.S. Department of Treasury, and the CBP as the administrator.
The process will have an impact on small importers in particular. The total of potential refunds is estimated at $166 billon.
Consolidated Refund Process
CBP describes the CAPE process in a bulletin as designed to consolidate refunds of IEEPA duties including interest instead of processing refunds on an entry-by-entry basis. CBP says it plans to add more functionality in subsequent phases for more complicated scenarios.
CAPE Phase 1 is limited to certain unliquidated entries and certain entries within 80 days of liquidation.
To request refunds of IEEPA duties:
- Importers of Record and authorized customs brokers should have an established ACE Secure Data Portal account.
- Refund recipients will use the ACE Portal account to provide CBP with bank account information for refunds.
- Importers of Record and authorized customs brokers must submit CAPE Declarations in the Ace Portal.
More Information
For additional information about ACE Portal access and ACH refunds, visit the CBP resources below:
- One Page Overview: ACH Refund Enrollment.
- Frequently Asked Questions: ACE Portal and ACH Refunds FAQs.
- Training Video: Applying for an ACE Portal Importer Account and Enrolling in ACH Refunds.
- Training Guide: ACE Portal Importer Account Application.
- Training Guide: ACH Refund Enrollment in the ACE Portal.
- Rejected ACH Refund Information: Replacement Refund Instructions.
CBP describes CAPE Phase 1 in its CAPE Information Notice. It also has prepared a CAPE Refund Quick Reference Guide.
CalChamber Position
The California Chamber of Commerce continues to voice concern about tariffs or any other actions that increase the cost of doing business for California entrepreneurs. CalChamber has long been committed to supporting a national free trade agenda that fosters economic growth and job creation. CalChamber will continue to focus on eliminating tariff and nontariff barriers to support the expansion of American exports. Further, a focus on trade agreements instead will ultimately lower both tariff and nontariff barriers and help create long-term, sustainable economic growth.
CalChamber encourages the administration to adhere to the spirit of the U.S. Supreme Court ruling and not look to other avenues to impose tariffs but work to refund the tariffs in a smooth and orderly fashion, thereby offering certainty for the business community, especially small businesses.
A brief online CalChamber survey of members in December 2025 reflected the significant impact of federal tariffs on companies’ supply chains, costs and hiring decisions.