In a recent Accounting Today article, Charles Clevenger, a principal at UHY, shared his perspective on the possibility of tariff refunds for business owners facing operating challenges. As companies continue to navigate cost pressures and evolving trade dynamics, this development could offer meaningful financial relief for those impacted. Below is an excerpt of Charles’ commentary highlighting key considerations for affected businesses.
The Trump administration has opened an online portal where businesses can file their claims for refunds on the tariffs they paid under the emergency powers that the Supreme Court has since ruled unconstitutional.
In February, the Supreme Court found President Trump's executive order imposing tariffs under the International Emergency Economic Powers Act of 1977 violated Congress's taxing power under the Constitution. The administration has since begun using other statutory authorities to justify tariffs on other countries, although those too are facing court challenges. In the meantime, the administration announced last month that it was building a portal where companies would be able to apply for refunds on the tariffs they had already paid.
The portal, operated by U.S. Customs and Border Protection, opened on Monday, although it has reportedly already experienced some glitches and error messages on its first day of operation. The CAPE system (short for Consolidated Administration and Processing of Entries) is designed to consolidate refunds of IEEPA duties, including interest, rather than processing refunds on an entry-by-entry basis, according to the website. This is only the first phase, and CBP plans to add more functionality in later phases for more complicated scenarios.
"For many business owners, tariffs have been among the biggest — if not the biggest — operating challenge they have faced over the last several years," said Charles Clevenger, a principal at UHY, a Top 50 Firm based in Michigan. "Thus, the possibility of tariff refunds has certainly been welcome news. However, recovering these funds has opened an additional layer of questions around what the process will actually look like, what is needed to file and how long it will take — among other things."
Clevenger said it's imperative for importers and brokers who are requesting IEEPA duty refunds through CAPE have the following in place:
An ACE Portal account: Importers of Record and authorized brokers must have an established ACE Secure Data Portal account.
Refund banking information: Refund recipients must use the ACE Portal account to provide bank account information so CBP can issue electronic refunds.
A CAPE Declaration: The IOR or authorized broker must submit the CAPE Declaration through the ACE Portal.
"Refund eligibility and refund readiness are not the same," said Clevenger. "Although it is a simplified electronic refund system, hurdles like incomplete portal access, missing bank information or unorganized data can significantly hinder the receipt of your refund. Start preparing your ACE account before CAPE Phase 1 begins."
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