Denver boutique hit by delayed tariff refunds

A Denver clothing retailer says months-long delays in federal tariff refunds are now driving cuts to inventory, staffing and cash reserves. (patch.com) The case centers on tariffs collected under the International Emergency Economic Powers Act, or IEEPA, a law the U.S. Supreme Court struck down as a basis for those import duties on Feb. 20, 2026. Patch reported the Denver boutique’s owner said the missing refund money has already forced the business to scale back purchases and hours. (patch.com 1) (patch.com 2) U.S. Customs and Border Protection said its new CAPE refund system launched its first phase on April 20, 2026, and that Phase 1 covers only certain unliquidated entries and some entries within 80 days of liquidation. The agency said importers also need an Automated Commercial Environment portal account, bank information on file, and a CAPE declaration before money can move. (cbp.gov) That structure helps explain why a cash-flow problem can outlast the court ruling. CBP said CAPE is being deployed in phases for “more complicated scenarios,” and trade advisers have warned that refunds will be issued over time rather than all at once. (cbp.gov) (claconnect.com) The money at stake is large. Patch reported that more than $175 billion in tariffs had been collected at U.S. ports before the court decision, and CBP’s refund portal is meant to handle claims at scale instead of processing them one entry at a time. (patch.com) (cbp.gov) Colorado businesses were hit hard even before refunds became possible. Denver7 reported in February that Colorado businesses paid $1.1 billion in tariffs from March 2025 through December 2025, and Denver retailer Aktiv said one fall shipment alone cost about $25,000 more than expected because of the duties. (denver7.com) Small businesses say the refund process itself is now becoming another hurdle. CBS News reported this week that some importers saw high-volume error messages, account problems and long waits for help after the CAPE portal opened. (cbsnews.com) Congressional Democrats have pushed for faster action. Patch reported Sens. Ron Wyden, Ed Markey and Jeanne Shaheen introduced a bill that would require Customs and Border Protection to issue refunds within 180 days and pay interest on the money returned. (patch.com) For the Denver boutique, the timeline matters more than the legal win. The owner told Patch that if the refund delays continue much longer, layoffs — or a permanent closure — could follow. (patch.com)