Refunds Coming for Exporters Owed $10 Billion from Illegal U.S. Tariffs The U.S. Supreme Court’s ruling in February declared certain tariffs imposed under the International Emergency Economic Powers Act (IEEPA) illegal, triggering a massive refund process for affected importers. Over $160 billion in gross revenue was collected from these tariffs before the court’s decision, with Canadian exporters now seeking approximately $10 billion in refunds. U.S. Customs and Border Protection (CBP) has implemented the Consolidated Administration and Processing of Entries (CAPE) system to manage the refund process, though challenges remain in navigating the complex administrative and legal framework. The CAPE system is operational for most entries, including regular consumption entries and warehouse withdrawal entries. Importers who filed for refunds after their goods were withdrawn from bonded warehouses can now access their money through the automated portal. However, older entries—those that have completed the liquidation process—are still entangled in legal disputes. Liquidation, akin to settling a restaurant bill, occurs by day 314, after which CBP finalizes the duty assessment. Importers have 80 days post-liquidation to claim refunds via CAPE, but after day 81, the portal locks out users unless they file a protest within 180 days. The litigation now centers on “finally liquidated entries,” which are no longer eligible for routine refunds. The Court of International Trade (CIT) ordered CBP to refund duties, but the U.S. government argues that only parties directly involved in the court case should receive refunds. This disagreement has escalated to the Federal Circuit, where the court will decide whether the CIT’s order can apply broadly to all importers.#us_supreme_court #federal_circuit #customs_and_border_protection #court_of_international_trade #cbp
