Importers gain another path to tariff refunds

Washington — Importers have another opportunity to recover tariffs paid under the International Emergency Economic Powers Act after U.S. Customs and Border Protection expanded the range of import entries eligible for its refund process this week.

Effective June 29, CBP expanded its Consolidated Administration and Processing of Entries, or CAPE, refund process to cover an additional category of import entries that previously could not be submitted through the system. The change allows eligible importers and customs brokers to pursue refunds on more shipments that were assessed IEEPA tariffs.

The online portal is now accepting eligible Phase 2 claims, allowing importers and customs brokers to begin submitting newly eligible entries immediately. Trade advisors recommend that companies review their import records promptly to determine which shipments may now qualify before applicable filing deadlines expire.

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The latest update represents the second phase of CBP‘s rollout of the CAPE system, which was established to process refunds after court rulings invalidated the IEEPA tariffs.

For furniture importers, many of whom rely heavily on imported products and components, the expansion could increase the number of shipments eligible for refunds.

Trade advisors at Mowry & Grimson said the new process allows qualifying entries that are still in the reconciliation process to have IEEPA duties removed before reconciliation is completed, separating the refund from the reconciliation calculations and simplifying the process.

The expansion does not apply to every reconciliation entry, however. According to CBP, entries for which the reconciliation process has already been completed remain ineligible during this phase, though the agency has indicated those entries are expected to be included in a future update.

Importers should also pay close attention to filing deadlines. CBP said companies nearing reconciliation deadlines should prioritize completing those filings, noting that participation in the CAPE refund process does not replace or delay required reconciliation filings.

The agency also said the same eligibility rules established during the first phase of the rollout remain in place, meaning only qualifying entries that have not exceeded the applicable liquidation timeframes can be submitted through the expanded process.

The update comes as CBP continues expanding the refund infrastructure following court decisions striking down the IEEPA tariffs. The agency has been rolling out the CAPE system in stages as it works through what trade advisors have described as one of the largest customs refund efforts in recent years.