Tariff refunds may leave cash trapped

Customs and Border Protection plans to start processing some tariff refunds on April 20, but many companies will wait months to see any money. (cbp.gov) (politico.com) The refund program covers duties collected under the International Emergency Economic Powers Act, or IEEPA, after the Supreme Court ruled on February 20, 2026, that the law did not authorize broad Trump tariffs. The Court of International Trade then ordered Customs and Border Protection to repay the duties. (foley.com) (hklaw.com) Customs and Border Protection said on April 10 that Phase 1 of its new Consolidated Administration and Processing of Entries system will begin April 20. The agency said valid refund claims generally will be paid 60 to 90 days after it accepts a CAPE declaration. (cbp.gov) (supplychainbrain.com) Most companies that paid tariff costs are not the ones who can file. Customs and Border Protection and trade lawyers say the refund right belongs to the importer of record, which leaves retailers, manufacturers and distributors farther down the chain dependent on contracts and private negotiations. (cbp.gov) (agg.com) That distinction turns the refund into a cash-flow problem, not just a legal one. An importer may eventually recover duties from the government, while a customer that already reimbursed those costs can still have cash tied up until the importer gets paid and agrees to pass the money through. (politico.com) (agg.com) The scale is large. Trade lawyers and industry advisers say Customs and Border Protection may have to unwind roughly $130 billion to $166 billion in IEEPA duties across more than 53 million entries and more than 330,000 importers. (foley.com) (skadden.com) (blogs.tradlinx.com) Customs and Border Protection is building CAPE because its normal entry-by-entry process would be too slow for a refund job this size. The agency says CAPE will bundle eligible claims, remove IEEPA tariff lines from entries and calculate interest before issuing payment. (cbp.gov) (taxnews.ey.com) The administration has already faced criticism for moving slowly. Politico reported in March that businesses were preparing lawsuits as the White House tried to delay repayments ordered after the Supreme Court decision. (politico.com) For now, April 20 is the start of processing, not the date most companies get checks. Until Customs and Border Protection accepts claims, pays importers and those importers settle up with customers, a large share of the refund money will stay stuck inside supply chains. (cbp.gov) (politico.com)