U.S. Customs and Border Protection (CBP) on Monday began rolling out a new system to refund billions of dollars in tariffs collected under a law later ruled unconstitutional, marking a significant step following a Supreme Court decision that struck down key elements of President Donald Trump’s trade policy.
The agency said importers and customs brokers can now submit claims through its Automated Commercial Environment (ACE) portal using a newly introduced tool, the Consolidated Administration and Processing of Entries (CAPE). The system enables businesses to seek repayment of duties collected under the International Emergency Economic Powers Act (IEEPA).
Once claims are validated, CBP will recalculate duties excluding the invalidated tariffs and reliquidate entries, triggering refunds directly to the companies that originally paid them. The agency said valid claims will typically be processed within 60 to 90 days, although more complex cases may take longer.
The move follows a February ruling by the U.S. Supreme Court, which found that sweeping tariffs imposed under IEEPA were unconstitutional, stating that authority over such taxes lies with Congress, not the president. Subsequently, the U.S. Court of International Trade directed CBP to remove the tariffs from affected entries and refund excess duties along with interest.
CBP estimates that more than 330,000 importers could be eligible for refunds on duties paid on over 53 million shipments, with total collections reaching approximately $166 billion. In the initial phase, about $127 billion in payments are eligible for electronic refunds.
Thousands of companies have already filed claims to recover tariff payments. However, it remains uncertain to what extent consumers will benefit, depending on whether businesses pass on the refunded amounts.
Some firms, including FedEx, said they plan to return recovered funds to customers who originally bore the costs.