If you blanched at the tariff bills your small business rang up when President Trump implemented his signature economic policy, relief might be on the way.
That is, if you’re willing to dig through mounds paperwork and tackle a government website.
To successfully get a refund, you must meet specific eligibility requirements and complete a detailed application process.
Here’s what you need to know about how the tariff refund process works.
Who qualifies for tariff refunds?
To qualify for a tariff refund, you must be:
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An importer of record (IOR),
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Or an authorized customs broker who directly paid IEEPA tariffs.
The importer of record is the individual responsible for making sure imported goods follow all laws and who pays the IEEPA (as well as any other) tariffs.
If you worked with an authorized broker and it’s listed, it can apply for a refund on your behalf.
If you worked with a shipping company, however, and it’s the IOR, you’ll need to work with it to get a refund. UPS, for example, says it will apply for refunds for eligible customers and once it receives the money, pass it on to those businesses.
Which entries qualify for refunds?
It’s important to keep in mind, however, that during “Phase 1,” the CBP is only refunding:
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Unliquidated IEEPA entries. Unliquidated entries means they’re pending or “open.” In other words, you’ve paid an estimated tariff amount, but U.S. Customs has not finalized its fees.
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IEEPA entries that were liquidated in the last 80 days. Liquidated entries are closed, meaning the CBP has finalized the total fees you owe on that import.
The agency says that it plans to accept refunds for other types of entries, but has not yet announced a timeline for doing so.
How to apply for a tariff refund
If you’re eligible for a tariff refund, you can apply through the CBP’s Automated Commercial Environment (ACE) portal.
Follow these steps:
1. Set up an ACE account.
2. Add bank information to ACE portal.
Once you’ve received account access, or if you already have it, you’ll need to add your bank information in order to get a direct deposit refund. To do this, you’ll go to the “Importer sub-account” view and find the “ACH refund authorization” tab. In this tab, you can add or update your bank account information for receiving refunds.
3. Confirm eligible tariff entries.
Next, you’ll need to find out which of your imports had IEEPA tariffs and check whether they qualify for a refund. You should look through your import records (Form 7501) for entries with an HTS Chapter 99 code (which means it’s an IEEPA tariff).
From those entries, you’ll need to make sure that they’re either:
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Unliquidated (i.e. not finalized yet), or
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Liquidated (i.e. finalized) within the last 80 days.
As a reminder, these are the only types of entries that are currently eligible for refunds.
4. Prepare your Consolidated Administration and Processing of Entries (CAPE) declaration.
You’ll submit your refund request as a “CAPE declaration.” Your declaration will include the eligible entry numbers in the form of a .CSV file. Each declaration is limited to 9,999 entries. If you have more than that, you can file multiple CAPE declarations.
To prepare this file, you’ll:
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Go to the CAPE tab in the Importer, Filer and Organizational Broker accounts section of the ACE portal.
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Within the CAPE tab, click file uploads.
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Download the CAPE Upload Template.
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Fill your eligible entry numbers in the template.
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Save the file.
5. Submit your CAPE declaration.
Once you’ve completed the CAPE template, you’ll upload it within the CAPE tab. If the file is accepted, the screen will read: “Successfully Started Upload Job.” At this point, the system will review your file for a second time — and if it’s approved — you’ll see your upload status as “accepted” within the CAPE file upload history. You’ll also see a claim number.
If, at any point during this process, there’s an error with your file, you’ll be notified and receive a reason why the file wasn’t accepted. If this happens, you can correct the file and submit it again.
The CBP will review your declaration (i.e. your refund request). The agency will update your import entries and close or reclose them. You should expect your refund to be issued within 60 to 90 days of an accepted CAPE declaration. You’ll receive your refund through ACH transfer to the bank account you have on file.