U.S. Customs begins processing $35 billion in tariff refunds after Supreme Court ruling

U.S. Customs and Border Protection has begun processing refund claims for import duties collected under the International Emergency Economic Powers Act after the Supreme Court ruled on February 20 that President Donald Trump lacked authority to impose the tariffs under that law. CBP launched the first phase of its CAPE refund system on April 20 through the agency’s Automated Commercial Environment portal, according to the agency and court filings. The process covers certain unliquidated entries and entries within 80 days of liquidation, with later phases planned for more complex claims. Social media posts on May 19 said roughly $35 billion in refunds were being processed, but CBP’s public materials do not show that figure on the page describing the program. ### Which tariffs are covered by the refund process? The Supreme Court ruled 6-3 on February 20 in *Learning Resources, Inc. v. Trump* that tariffs imposed under IEEPA were unlawful, according to court summaries and legal analyses. The ruling did not itself spell out the refund mechanics, but the U.S. Court of International Trade said on March 4 that affected duties should be refunded for unliquidated entries and for liquidated entries that were not yet final. Holland & Knight said the trade court’s order applied to all importers, not only companies that had filed suit. CBP said its CAPE process is meant to consolidate IEEPA duty refunds, including interest, rather than handle them one entry at a time. The agency said filers must submit declarations through the ACE portal and that each declaration can cover as many as 9,999 entries. ### How far along is Customs in paying companies back? (hklaw.com) CBP said Phase 1 of the CAPE system started on April 20, 2026. CNBC reported that approved claims would take 60 to 90 days to be paid and that the government planned to process refunds in phases, starting with more recent tariff payments. As of April 14, 56,497 importers had completed registration and were eligible for refunds totaling $127 billion, including interest, CNBC reported, citing CBP. (cbp.gov) The same report said more than 330,000 importers had paid about $166 billion on more than 53 million shipments under the challenged tariffs, though not all entries were eligible in the first phase. ### Which companies have been named publicly? FedEx sued the U.S. government on February 23 seeking a “full refund” of IEEPA duties it paid, according to CNBC. The company said it had taken action to protect its rights as an importer of record to seek refunds from CBP. Dyson, L’Oreal, Bausch + Lomb, Costco, J. (cnbc.com) Crew and Hasbro were among companies named in reporting on refund litigation filed in the Court of International Trade. Insurance Journal, citing court filings and related reporting, said FedEx was among at least 2,000 companies suing the federal government over tariff refunds, and that Dyson and other companies had also filed claims. (cnbc.com) ### Does this mean consumers get checks too? FedEx said in a statement reported on March 2 that if refunds were issued to the company, it would refund “the shippers and consumers who originally bore those charges.” A separate proposed class action in Miami argued that promise was not legally enforceable and sought compensation for customers who paid import duties and related fees. (insurancejournal.com) CNBC reported on April 19 that the refund system for businesses could eventually lead to consumer reimbursements in some cases, but only after company claims are processed and approved. The article said any reimbursements that businesses plan to make to customers would likely arrive slowly. ### What happens next in the refund process? (insurancejournal.com) CBP said additional phases of CAPE are planned for more complicated scenarios beyond the initial April 20 rollout. The agency’s public guidance directs importers and customs brokers to file declarations through the ACE portal and to enroll bank information for ACH refunds. (cnbc.com) The next milestones are administrative rather than political. Importers must submit CAPE declarations entry by entry through ACE, and approved claims are expected to be paid within 60 to 90 days, according to CNBC’s April 19 report on the launch. (cnbc.com) (cbp.gov)