U.S. tariff refunds: 15% denied

U.S. Customs and Border Protection says about 15% of tariff-refund entries reviewed through its new online portal have been denied so far. (news.bloomberglaw.com) The portal, called CAPE, opened April 20 for importers and customs brokers seeking refunds of duties collected under the International Emergency Economic Powers Act. CBP built it inside the Automated Commercial Environment, the agency’s trade-processing system. (cbp.gov 1) (cbp.gov 2) In a court update dated April 28, CBP official Brandon Lord said more than 75,000 requests had been submitted. More than 47,000 claims were properly filed, covering about 11 million tariff payments. (news.bloomberglaw.com) (wol.com) Of the 13.3 million import entries that cleared an initial review, about 15% were denied for failing what CBP called “entry-specific validations” as of April 26. CBP has said entries can be rejected for formatting problems, corrupted files, or filer mismatches. (bloomberg.com) (cbp.gov) The refunds stem from a February Supreme Court ruling that struck down the emergency tariffs, setting up a potential $166 billion reimbursement process. CBP says validated refunds will include interest and be paid under court order and other statutory authority. (time.com) (cbp.gov) CAPE is designed to handle claims in batches instead of entry by entry. CBP’s April guidance said Phase 1 lets filers upload a comma-separated values file listing entry numbers for requested refunds. (cbp.gov 1) (cbp.gov 2) The money is already being treated as an asset on Wall Street. Oaktree Capital Management sued BJ’s Wholesale Club on April 28, alleging BJ’s backed out of a deal to sell rights to about $29 million in tariff refunds for 70 cents on the dollar. (news.bloomberglaw.com) Oaktree said in its New York suit that BJ’s walked away because the market value of the claim had risen above the agreed price. The case shows that even after the Supreme Court ruling, the value of a refund still depends on validation, timing, and payment. (bloomberg.com) (news.bloomberglaw.com) For importers, the immediate issue is mechanical, not legal: getting the filing right. For investors buying refund rights, the latest CBP numbers show that a court win did not turn every claim into cash on the first pass. (cbp.gov) (news.bloomberglaw.com)