Tariff signal to watch

U.S. Customs and Border Protection said it will open the first stage of its tariff refund system on April 20, even as Kentucky retailers say import costs are already changing prices and inventory. (cbp.gov, wbko.com) The agency said Phase 1 of the Consolidated Administration and Processing of Entries system, or CAPE, will cover certain unliquidated entries and entries within 80 days of liquidation. Importers of record and customs brokers will file claims through the Automated Commercial Environment portal, not the Automated Broker Interface. (cbp.gov, cbp.gov) Customs said filers will submit a comma-separated values file listing entry numbers, with each declaration capped at 9,999 entries. After review, the system will remove the International Emergency Economic Powers Act tariff code from eligible entries and recalculate duties before refunds are issued. (cbp.gov, cbp.gov) In Bowling Green, Kentucky, WBKO reported that tariffs are already showing up on store shelves. Ali Miah, owner of International Food Market, said his imported food costs have risen 10% to 20%, forcing him to raise prices and adjust what he carries. (wbko.com, msn.com) That split screen reflects two different clocks in the same trade story: higher costs are hitting current shipments, while refunds apply to duties paid under an earlier legal regime. Customs said Phase 1 will not yet accept entries tied to drawback claims, open protests, reconciliation filings, or some non-ACE records. (cbp.gov) Customs is building CAPE in stages because the first release does not cover every case. The agency said future phases will add more complicated scenarios, while the current rollout is aimed at “most entries” that are still unliquidated or recently liquidated. (cbp.gov, cbp.gov) The refund process follows the Supreme Court ruling that struck down tariffs imposed under the International Emergency Economic Powers Act. Customs said on its public guidance page that it is implementing refunds “as authorized by court order or applicable law.” (cbp.gov, cbp.gov) For businesses, that means cash recovery may begin on April 20 for some past entries, while new orders can still arrive with higher landed costs from other tariff programs and supplier price changes. For shoppers, the more immediate signal is simpler: the shelf price can move before the refund does. (cbp.gov, wbko.com, budgetlab.yale.edu)