UPS, FedEx, and DHL have filed claims with U.S. Customs and Border Protection (CBP) seeking refunds for import duties imposed under President Trump’s International Emergency Economic Powers Act (IEEPA) tariffs, which the Supreme Court ruled were illegally applied. This follows CBP’s launch of a portal allowing importers to request tariff reimbursements.
The tariffs, imposed during the Trump administration, added extra costs for businesses importing goods into the U.S. On Monday, CBP opened the Customs Automated Proxy Entry (CAPE) portal, enabling entities classified as importers of record (IORs) to file claims for these refunds. Only IORs can submit claims, so individual consumers are not able to apply directly.
UPS confirmed it is submitting refund claims through the CAPE portal on behalf of customers where it acted as the importer of record. The company said it plans to reimburse customers who initially paid the tariffs once it receives the returned funds from CBP. UPS explained that the refunds will be processed after federal approval, which could take 60 to 90 days from claim acceptance.
Similarly, FedEx disclosed its intention to repay customers who bore the tariff costs and is submitting claims for shipments where it served as customs broker. FedEx indicated it will act quickly to refund customers after receiving the money from CBP.
DHL also started submitting claims as soon as the portal opened and stated it will return the refunds to the parties that originally paid the duties.
None of the shipping companies has revealed the total amount they are seeking in refunds. Meanwhile, importers relying on these carriers to file claims must wait for the process to unfold. Kacie Wright, manager of a Texas-based musical instrument retailer, said her company has to depend on shippers like UPS and DHL to claim the refunds and pass the money on. She expressed hope the refunds will be processed promptly but acknowledged it remains uncertain until funds are received.
Adding to the complexity, former President Trump commented that he might favor companies that choose not to seek refunds, describing it as “brilliant” for firms to forgo reclaiming tariff payments.
Why it matters
The refund of these tariffs affects a wide range of businesses and consumers who absorbed increased costs during the period the tariffs were in effect. The Supreme Court’s ruling has created a potential financial recovery for importers who faced higher expenses, impacting pricing and supply chains. The process set by CBP aims to return funds efficiently, but only to importers of record, highlighting the role of shipping companies as intermediaries in the refund process.
Background
The IEEPA tariffs were imposed under President Trump’s administration to address economic policies of foreign countries but were later challenged in court. In February, the Supreme Court unanimously ruled the tariffs were illegally imposed, prompting CBP to initiate a formal refund process. The CAPE portal is the central mechanism facilitating these claims, designed for businesses acting as importers of record.
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