(CBS NEWS) — The U.S. government is set to launch an online portal next week that lets businesses request refunds for tariffs deemed illegal by the Supreme Court. But payouts won't be automatic, and legal experts said businesses could face other obstacles getting their money back.
A federal agency, U.S. Customs and Border Protection (CBP), will boot up the portal — known as CAPE, for Consolidated Administration and Processing of Entries — so companies can submit claims for tariff refunds. CBP confirmed in a filing on Tuesday that CAPE will open for refund applications on April 20.
The government could owe businesses up to $175 billion after the Supreme Court ruled in February that President Trump had illegally issued tariffs under the International Emergency Economic Powers Act, or IEEPA. Since the landmark decision, companies have filed thousands of lawsuits with the Court of International Trade (CIT) seeking tariff refunds.
"CAPE will simplify International Emergency Economic Powers Act (IEEPA) duty refund requests made pursuant to court order and in accordance with appropriate statutory authority by providing an electronic pathway to submit valid IEEPA duty refund claims," CBP states in guidance on its website.
Here's what to know about the government tariff refund portal, including who is eligible to submit a claim and how soon businesses could receive payment.
Burden on the importer
Although CAPE will offer a mechanism for businesses to seek compensation for the illegal emergency levies, it places the onus for obtaining refunds for hundreds of thousands of dollars on U.S. importers, trade attorneys told CBS News. The system also limits refund applications to "unliquidated tariffs" — estimated duties that can still be amended — plus tariffs that were finalized by CBP within the past 80 days.
As of April 9, more than 56,000 U.S. importers had registered to receive refunds, according to CBP. Up to 82% of IEEPA duty payments, amounting to $127 billion, are eligible for refunds in CAPE's initial deployment.
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"It's amazing that CBP has been cooperative as they've been," attorney Lizbeth Levinson, co-chair of the international trade practice group at Fox Rothschild, told CBS News. "But one thing has been clear from the beginning — that customs is putting the burden on the importer. Customs is not figuring it out. It's up to each individual importer."
Who is eligible?
Two types of parties can use CAPE to apply for tariff refunds: businesses that paid IEEPA tariffs and customs brokers that paid duties on an importer's behalf.
Only the so-called importer of record is entitled to money back, according to Levinson. For example, consumers who were hit with higher costs on an imported product are not eligible to submit claims for a tariff refund.
Are the refunds automatic?
No, businesses must opt in for refunds and wait for CBP to process and approve their claims.
"These are absolutely not automatic refunds," Levinson said. "You have to jump through hoops, even though customs should have taken it upon themselves to do automatic refunds. They have all the information — they know who paid IEEPA duties and how to get in touch with people."
Which tariffs are eligible for refunds?
Only IEEPA tariffs are eligible for refunds, and even then, there are limits to the kinds of duties CBP said it will refund. Initially, CAPE will accept requests for estimated tariffs, along with those that were finalized by CBP within the past 80 days.
That accounts for roughly 63% of all IEEPA duties, according to Sanne Manders, president of Flexport, a global trade and logistics company that helps businesses estimate the size of their refunds.
"The remaining 37% of entries that have already been liquidated or are being protested are excluded," Manders said, adding that businesses face ongoing uncertainty over their eligibility for refunds. "A lot is still unclear about what the process will be."
When will companies get refunds?
CBP has said it will issue tariff refunds for valid claims within 60 to 90 days of approving them. But it could take longer if claims contain errors or inaccuracies that require fixing.
Manders noted that it's not uncommon for customs brokers to make mistakes in paperwork by, for example, applying the wrong tariff codes to a given import.
"The big message is that you have to clean up your act before you ask for a refund," he said. "Assuming everything goes well, you'll probably see the 63% of refunds potentially in months, while the other 37% could take years."
Meanwhile, although the tariff refund portal is set to launch next week, some trade attorneys and other experts fear potential hitches.
"April 20 is when things are going to start to hit the fan," Adam Hanover, managing director of restructuring and dispute resolution at CohnReznick Advisory, told CBS News. "I am still not sold that the system is going to work."
Ernst & Young trade policy expert Blake Harden told CBS News that while she's impressed by the progress CBP has made in standing up a refund system, time will tell how effective it is. "On paper this all looks pretty good. But is this system really going to operate as advertised?"
An alternative to refunds
Some importers may decide that the hassle of collecting and submitting paperwork for a tariff refund isn't worth the effort, especially without a guarantee they'll be made whole anytime soon.
Those businesses have an alternative. Some hedge funds and financial services firms are buying businesses' tariff refund claims, putting money in importers' pockets immediately, while taking on the administrative burden of applying for a refund, according to Flexport's Manders.
"That is an option for importers who don't want to wait to get their money back," he said, noting that Flexport is itself offering to purchase such claims. "They can sell their claim now, get the money instantly and be done with it."
This route could appeal to "anyone who needs cash now, because you know you will get your money in weeks, instead of months," he added.
Rick Woldenberg, CEO of educational toy company Learning Resources, estimates the U.S. government owes his business up to $12 million in refunds for tariffs the company paid. It was his company's 2025 lawsuit that the Supreme Court ruled on in striking down the Trump administration's use of IEEPA to impose tariffs.
He told CBS News he plans to be "first in line" when the refund portal opens next week, although Woldenberg would've preferred that the government automatically reimburse businesses.
"Most people have the experience of getting a check in the mail when they pay more in taxes than they owe," he said. "You don't have to opt in to get money back. You don't have to remind them or beg them — it's not theirs."
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