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Businesses that paid certain duties imposed under the International Emergency Economic Powers Act (IEEPA) may be eligible to seek refunds through U.S. Customs and Border Protection’s (CBP) Consolidated Administration and Processing of Entries (CAPE) process in the ACE Secure Data Portal. CBP has stated that valid refunds generally are expected within 60 to 90 days after acceptance of a CAPE Declaration, unless further review is required.
These refunds apply only to certain IEEPA duties. They do not apply to other tariffs or trade duties, including duties imposed under Sections 232, 301, or 201, or to antidumping duties, countervailing duties, or ordinary most-favored-nation tariff rates.
CBP is rolling out the refund process in phases. In Phase 1, CAPE generally applies only to certain unliquidated entries and certain entries liquidated within the prior 80 days. Because eligibility depends in part on entry status and timing, businesses should review their import records promptly.
Refund requests may be filed only by the importer of record or the licensed customs broker who filed the original entries on the importer’s behalf.
To prepare, businesses should identify potentially eligible entries and review their records to confirm entry numbers, importer-of-record information, and coordination with the customs broker that filed the entries. Although businesses may want to gather entry summaries and payment records for internal review, the CAPE Declaration itself generally consists of a CSV file listing eligible entry numbers.
Businesses should also confirm that their banking information in the ACE Portal is current, because approved refunds are generally issued electronically through ACH.
Some entries may not qualify during the initial phase of the program, including certain entries involving reconciliation, drawback, or open protests. In addition, if entries are rejected during validation, they may need to be submitted on a new CAPE Declaration, because an accepted CAPE Declaration cannot be amended.
Companies that believe they may qualify should review eligibility and filing procedures carefully with the importer of record and, where applicable, the customs broker that filed the entries.
Resources:
Sources: U.S. Customs and Border Protection, Tax Notes