Since the launch of a new government portal on April 20, the U.S. Customs and Border Protection (CBP) has rejected roughly 15% of tariff refund claims submitted by businesses, the agency confirmed on April 29.
By April 26, CBP had received over 75,000 refund requests related to tariffs imposed under the Trump administration, with more than 47,000 claims properly filed, covering around 11 million tariff payments. The refund system, known as Consolidated Administration and Processing of Entries (CAPE), was created to comply with a Supreme Court order that struck down emergency tariffs imposed via the International Emergency Economic Powers Act (IEEPA).
How the CAPE system operates
CAPE currently accepts refund applications only for tariffs that have been finalized or for duties that can still be estimated by CBP. It specifically processes claims for tariffs levied during the Trump administration under the IEEPA framework. Some businesses are believed to have submitted claims outside these parameters, contributing to the rejection rate.
Brandon Lord, a CBP official, noted in a filing with the Court of International Trade that the portal has functioned mostly as intended, with only a brief 18-minute pause on its opening day to optimize processing capabilities. Despite minor technical glitches during initial rollout, the portal is operational and processing refund requests.
Business challenges with CAPE
Some business owners have reported difficulties in using the portal, particularly with account setup and submission errors. Beth Benike, co-founder of Minnesota-based baby products maker Busy Baby, shared her ongoing issues with her importer account setup that prevents her from filing a refund request. She described spending extensive time on calls with officials without resolution, though she remains optimistic about receiving a refund of approximately $50,000 once her account is properly configured.
Experts such as Nick Richards, a partner at law firm Greenspoon Marder, indicate that many rejected claims could be due to submission errors or requests outside the refund scope. Richards also praised CBP’s quick development and deployment of the CAPE system.
Why it matters
This refund process follows a Supreme Court ruling that invalidated certain emergency tariffs, mandating reimbursement to businesses that paid those fees. For many importers, the refund amounts are significant and can impact cash flow and operations. Efficient resolution of submitted claims and portal issues remains critical to restoring funds to affected businesses.
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Sources
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