Portal Launch and Initial Issues
The online portal for U.S. businesses to claim refunds on tariffs, deemed illegal by the Supreme Court, launched Monday, but some importers are already reporting technical difficulties. Rick Woldenberg, CEO of Learning Resources, stated he received an error message stating, "The system is currently experiencing high volume, please try again later" when attempting to file a claim. Woldenberg's company filed a lawsuit that resulted in the Supreme Court decision. The Customs and Border Protection (CBP) acknowledged the reported problems and said they are investigating.
Refund Eligibility and Amounts
The new Consolidated Administration and Processing of Entries (CAPE) portal is designed to handle claims from the 330,000 importers who paid an estimated $166 billion in tariffs. Phase 1 of the refunds system is limited to specific unliquidated entries and entries within 80 days of liquidation. Approximately $127 billion in duties, or 82% of International Emergency Economic Powers Act (IEEPA) duty payments, are eligible for refunds in CAPE's initial phase. The system is intended to streamline the "submission and processing of valid refund requests for duties imposed" under the IEEPA.
CAPE System Requirements and Process
Importers of Record and authorized customs brokers must create an account on the Automated Commercial Environment (ACE) portal and submit bank account information to receive refunds. The CBP states that refunds should be issued within 60 to 90 days of application approval, but inaccuracies or compliance concerns could extend this timeline. As of April 9, around 56,500 importers had completed electronic payment enrollment, a necessary step to receive funds.
Early Implementation Challenges
Beth Benike, co-founder of Busy Baby, reported spending over four hours on hold with CBP to resolve an account issue. Benike is seeking a $50,000 tariff refund. She received an error message stating "Duplicate tax ID," indicating her importer account was linked to another entity.
Impact on Consumers and Businesses
While it remains unclear how much consumers will directly benefit, some companies, including FedEx and Costco, have pledged to compensate customers. Costco filed a lawsuit in November seeking to block President Trump's tariffs and recoup already paid duties. Treasury Secretary Scott Bessent predicted the refund process "could be a mess" lasting "months" or "years."
CBP issued guidance to help importers prepare, but did not respond to questions about what steps the agency had taken to prepare for potentially high application volume or mitigate system glitches on launch day.
