Tariff refunds to be slow

U.S. Customs and Border Protection will open its first tariff-refund portal on April 20, but many importers will still wait weeks or months to get paid. (cbp.gov) The agency said the new Consolidated Administration and Processing of Entries system, or CAPE, will start with a limited first phase for certain unliquidated entries and certain entries within 80 days of liquidation. Importers and customs brokers must file refund claims through the Automated Commercial Environment portal using comma-separated values files, not the usual broker interface. (cbp.gov) Customs said each CAPE declaration can include up to 9,999 entries, and accepted claims will be reviewed, recalculated and then refunded electronically with interest after liquidation or reliquidation. Trade advisers at KPMG said the full processing timeline could run for several months as Customs deploys the system in stages. (cbp.gov, kpmg.com) The first phase leaves out several categories that matter to large importers, including entries tied to reconciliation, drawback claims, open protests, antidumping or countervailing duties, entries outside the Automated Commercial Environment, and entries whose liquidation is already final. Ernst & Young said Customs plans to add those more complicated cases later. (ey.com) That means the companies that paid the tariffs do not all line up in one queue. Firms with cleaner, newer entries can file first, while companies with older or disputed entries may stay outside the system until later phases. (cbp.gov, ey.com) Politico reported that Customs is on track to begin processing the first batch on April 20, but importers should not expect checks right away. SupplyChainBrain, citing Customs guidance, reported that valid refunds will generally be issued within 60 to 90 days after a CAPE declaration is accepted. (politico.com, supplychainbrain.com) The tariffs at issue were imposed under the International Emergency Economic Powers Act, and Customs says CAPE is built specifically to remove those Chapter 99 tariff lines, recalculate what should have been owed, and return the overpayment. Customs also says it will update the refund page regularly as the rollout changes. (cbp.gov, kpmg.com) The delays are already showing up in credit markets. ABF Journal reported on April 13 that middle-market lenders are tracking tariff uncertainty alongside rising commercial Chapter 11 filings, redemption pressure at business development companies and a Federal Reserve rate outlook that remains split. (abfjournal.com) For importers, the practical issue is cash: duties were paid up front, refunds will arrive later, and some claims cannot even enter the first window on April 20. For lenders, that leaves borrowers carrying a larger working-capital gap while Customs works through the backlog. (politico.com, abfjournal.com)