What Businesses Need to Know About IEEPA Tariff Refunds

If your business paid tariffs under the International Emergency Economic Powers Act (IEEPA) over the past year, there's significant news worth your attention.

Following a landmark Supreme Court ruling earlier this year, refunds on those tariffs are now available but the path to recovering them depends heavily on how your business handled importing goods in the first place.

Here's what you need to know.

A Quick Recap of How We Got Here

In February 2026, the U.S. Supreme Court ruled that IEEPA does not actually authorize the President to impose tariffs. Shortly after, the U.S. Court of International Trade ordered refunds for all businesses that had paid IEEPA duties.

While the refund order was temporarily suspended to allow the government time to build out the necessary infrastructure, U.S. Customs and Border Protection (CBP) opened a refund portal, known as the CBP Automated Processing Environment (CAPE) within the Automated Commercial Environment (ACE), and launched Phase 1 on April 20, 2026.

The case remains subject to appeal and the refund process is rolling out in phases, so businesses should act thoughtfully and stay informed as this continues to develop.

The Most Important Question: Are You the Importer of Record?

Before you do anything else, you need to answer one critical question: Is your business the "Importer of Record" (IOR) for the entity that incurred IEEPA duties?

This determines everything about how you can pursue a refund during Phase 1.

If You Are the Importer of Record

If your business directly handled the importation of goods, meaning your company was registered with CBP as the entity responsible for those shipments, you have direct legal recourse to the government for a refund.

To pursue a refund through Phase 1 of CAPE, here's where to start:

• Identify all shipments where your business paid IEEPA tarrifs.  
• Determine if those entries are eligible for the current phase. Phase 1 covers entries that are still open or unfinalized in the customs system (unliquidated entries), and entries that were finalized within the last 80 days.
• Pull together your documentation. CBP will require supporting records for your claims.
• Verify your ACE account is set up correctly, including your ACH banking information for electronic refund payments. Most importers haven't completed this step yet. Don't let it delay your claim.
• Submit through the ACE Portal and track your claim's status using ACE Reports.

Initial refunds are expected within 60 to 90 days of submission for qualifying entries. Given the scale of this process, moving promptly and staying organized will work in your favor.

If You Are NOT the Importer of Record

Many businesses, especially smaller ones, use third-party logistics companies like FedEx, UPS, or DHL to handle importing. In those cases, the logistics provider is typically listed as the Importer of Record, not your business. That means you don't have direct legal recourse against the government.

Instead, your path to recovery runs through your commercial relationship with that logistics provider. Here's what to do:

• Pull your contracts. Review any agreements with your shipping or logistics provider. Some include provisions that address situations like this, such as obligations to pass refunds back to the original payer if duties are found to be invalid.
• Reach out to your provider directly. Some third-party logistics companies have already committed publicly to returning refunds to customers. Others have been less clear. Don't assume. Ask, and get any commitments in writing.
• Understand that timing is uncertain. Even where a provider commits to passing refunds through, the timeline will depend on when they receive their own refunds from CBP.

If your current contract is silent on this issue, you may need to negotiate directly with your provider. These conversations are happening across many industries right now, so you're not alone in navigating this.

Don't Wait to Get Your Records in Order

Regardless of which category you fall into, documentation is everything in this process. Now is a good time to:

• Reconcile your records in your accounting or ERP system against customs documentation
• Locate commercial invoices, entry summaries, and proof of duty payments
• Confirm which shipments were subject to IEEPA tariffs specifically, as opposed to other tariff categories

If your records aren't clean or complete, getting organized before filing will save you significant headaches down the road.

The Bottom Line

This situation is still evolving. Importers should expect phased eligibility, technical filing requirements and CBP validation and compliance review before payment.

The refund process is in its early stages, legal proceedings are ongoing, and CBP's process for handling the full volume of claims will take time to mature. That said, potential refunds could be meaningful for businesses that imported significant volumes of goods over the past year, and the window for Phase 1 claims is open now.

The most important first step is simply understanding where your business stands. Are you the Importer of Record? What do your contracts say? What records do you have?

Not sure where your business stands? Reach out to us, and we'll help you asses your exposure and eligibility.

Disclaimer: This information is for general purposes only and does not constitute legal advice. Outcomes may vary based on facts, entry status and evolving guidance.

To learn more about LGT and how we can serve you, contact us here.