Businesses across the United States can now begin reclaiming billions in tariffs after a major legal reversal, as a new federal system goes live Monday
morning. The move marks a significant step in undoing duties that were later declared unconstitutional, with companies eager to recover long-tied-up funds. The refund process comes from a February 20 ruling in which the US Supreme Court, by a 6–3 majority, determined that the US President Donald Trump overstepped his constitutional authority. The tariffs, introduced last April under emergency powers citing the US trade deficit, were deemed an overreach into Congress’s exclusive power to impose taxes. While the court did not explain the process of the refund mechanism, a subsequent decision by the US Court of International Trade clarified that companies affected under the International Emergency Economic Powers Act (IEEPA) are entitled to reimbursement. This paved the way for the government to begin returning funds. Starting at 8 am, importers and customs brokers can submit claims through a new online platform operated by US Customs and Border Protection (CBP). The scale is unprecedented: more than 330,000 importers collectively paid an estimated $166 billion in tariffs across tens of millions of shipments, as per several reports. Refunds are expected to be issued within 60 to 90 days for approved claims, although officials have cautioned that delays are possible due to technical and administrative hurdles. The rollout will happen in stages, with priority given to more recent payments and cases still within certain accounting windows. So far, over 56,000 importers have registered in the system, making them eligible for roughly $127 billion in repayments, including interest, added the report. Navigating The CAPE System And Avoiding Errors Claims will be processed through the Consolidated Administration and Processing of Entries (CAPE) system, accessed via CBP’s Automated Commercial Environment portal. Businesses must submit detailed declarations and ensure all supporting documentation is accurate to avoid rejections. “CBP has issued guidance to the trade community to help them prepare to use the new CAPE tool," a CBP spokesperson said in an email cited by Axios. “Importers and brokers can visit CBP’s website for resources and step-by-step guidance." Experts warn that even minor errors could derail claims. “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. So we continue to ask everyone to be patient, because we think that patience will pay off." Nghi Huynh stressed the need for careful tracking: “It’s about having a clear process in place and keeping track of what’s been submitted and what’s been paid, so nothing falls through the cracks. Each file can include thousands of entries, but accuracy is critical, as submissions can be rejected if formatting or data is incorrect." Small Businesses Hope For Relief Amid Uncertainty For smaller firms, the refunds could offer much-needed financial breathing room. However, concerns remain about how quickly the money will arrive. “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." Jackson noted he began organising records immediately after the portal announcement, wary of delays caused by missing paperwork in the past. Although importers paid the tariffs, many passed the costs on to customers through higher prices. There is currently no requirement for businesses to share refunded amounts with consumers, though ongoing lawsuits may challenge that. Some logistics firms, however, have indicated they may pass refunds along. “Supporting our customers as they navigate regulatory changes remains our top priority," FedEx said. “We are working with our customers as CBP begins processing refunds and plan to begin filing claims on April 20." Meanwhile, officials have warned that the broader refund effort could be lengthy. Treasury Secretary Scott Bessent previously cautioned it “could be a mess," lasting “months" or “years," while Trump suggested related legal battles may stretch on for up to five years.
