No time frame for processing millions of outstanding tariff refunds
Thousands of importers have no timeframe for when their tariff refunds will be processed, say leading audit, tax and business advisory firm, Blick Rothenberg.
John Havard, a consultant at the firm, said: “The CBP has announced that the online portal for submitting tariff refunds, ‘Consolidated Administration and Processing of Entries’ (CAPE), will be going live on April 20th. CAPE is expected to be able to deal with around 63% of refund requests in its first phase. However, no time frame has been offered for processing the remaining 37% of tariffs.”
He added: “Many of these remaining cases are classed as ‘final’ tariffs as the goods concerned will have entered the US more than a year before the refund claim is filed. In such instances, the claims procedure is going to be more complex. For news on how the system will handle these claims, we are unlikely to hear anything until government officials next appear before the Court of International Trade to give the presiding judge the next mandated progress report.”
John said: “There were approximately 53 million unlawful tariff collection transactions and the potential volume of refund claims is estimated at up to $166bn. More than 26,000 importers, accounting for $120bn of International Emergency Economic Powers Act (IEEPA) tariffs have already registered for the ability to receive electronic refunds. An earlier action by the Trump Administration requires all payments by the Federal Government to be made electronically.”
He added: “In the case of any particular tariff payment, a claim for refund will be limited to the official importer-of-record or that person’s US customs broker. As refunds will only be paid electronically, whoever submits a refund claim must already have an account set up with CBP’s Automated Commercial Environment. Anecdotal evidence is that there has been considerable activity in new account registrations since the Supreme Court ruled IEEPA tariffs to be unlawful.”
John said: “There will be a delay before any payments commence, but in a statement previously made to the Trade Court by a government official, interest is to be paid on refunded amounts.”