U.S. Customs and Border Protection is set to launch a claims portal Monday to process tariff refunds tied to recent court rulings, with potential repayments totaling an estimated $166 billion.
The U.S. Court of International Trade issued a ruling last month finding that tariffs struck down by the U.S. Supreme Court in February must be refunded. There is still a lingering sense of unease in the trade community over the possibility of an eventual appeal by the administration, according to Bryan Graiff, who leads manufacturing and distribution for accounting and consulting firm Armanino.
Despite that uncertainty, Graiff said companies should not wait for final clarity before acting.
“We’re advising our clients to prepare for the opportunity to get a refund, because we think it’s going to be a pretty complex process, and there’s going to be a lot of work to do to prepare for that,” he said in an interview with CFO Dive.
Recent efforts at CBP have given companies strong reason to hope that a viable refund process is taking shape, according to Nghi Huynh, partner-in-charge of transfer pricing at Armanino.
“There is definitely positive momentum,” she said in an interview with CFO Dive, pointing to CBP’s plan to launch its portal Monday.
Phased process
CBP is expected to introduce a phased rollout, with the agency estimating that roughly 63% of refunds will be handled in the initial stage, focused on certain unliquidated entries and those within 80 days of liquidation.
As of April 9, about 56,497 importers had completed steps to receive electronic refunds, representing roughly $127 billion in duties, CBP said Tuesday in a filing before the Court of International Trade.
“What changes on Monday is the launch of the claims portal itself,” Huynh said. “That’s when importers can begin formally submitting their refund claims and supporting documentation, which will allow CBP to start reviewing and processing those requests.”
In its Tuesday filing, CBP provided an update on its Consolidated Administration and Processing of Entries program for processing refund claims, saying the agency has completed “the primary development of all components and functionalities for CAPE Phase 1.”
“The agency has transitioned to an intensive testing posture, focused on performance and scenario-based testing of all CAPE components and the remediation of any defects identified during testing,” CBP official Brandon Lord wrote in the filing.
Documentation hurdles
The refund process is expected to require extensive documentation, including importer-of-record filings, as well as details on shipment contents and duties paid, according to Graiff.
Companies may also need to show whether tariff costs were absorbed internally or passed on to customers through pricing decisions at the product or SKU level. The complexity can escalate quickly, particularly for large shipments containing thousands of SKUs, Graiff said.
The process could get particularly challenging for tariff-impacted companies that deprioritized record-keeping in a scramble to secure inventory.
“I could see where, in a rush to get those products, maybe some of the paperwork wasn't always filled out 100% accurately,” he said.
Besides ensuring proper documentation, CFOs should also prepare by assessing potential “downstream impacts” of receiving a refund, such as financial reporting and tax-related issues, according to Huynh.
“For some companies, this could be a very sizable dollar amount,” she said.
Graiff said close coordination between CFOs and supply chain and procurement leaders who are closest to the underlying transactions and supplier relationships will be critical.
“They’ll be key in pulling together the necessary documentation, with the CFO helping ensure all inputs are aligned, accurate, and ready for submission,” he said.
