Navigating IEEPA Tariff Refunds: What Importers Need to Know Now

Critical steps to secure your refund before time runs out

The Supreme Court's recent decision to invalidate tariffs imposed under the International Emergency Economic Powers Act (IEEPA) presents both a significant financial recovery opportunity and a complex operational challenge for importers. With approximately 53 million affected entries across an estimated 300,000 importers, organizations must take timely action to position themselves for refund eligibility.

In a recent discussion, Travis Epp, Partner-in-Charge of EisnerAmper's Manufacturing & Distribution practice, consulted with Kelly Moroney, Director of Ocean Freight at RIM Logistics, who brings over 30 years of industry expertise to these matters. The following outlines key considerations for executive teams navigating this process.

Key Takeaways

• The Supreme Court decision invalidating certain IEEPA tariffs creates a potentially large refund opportunity.
• U.S. Customs and Border Protection (CBP) is building an automated system to handle refund processing at volume, but organizations should start preparing now to preserve eligibility, given the tens of millions of entries.
• CBP has stopped issuing paper checks, and electronic refunds are now mandatory.
• ACE Portal access is a requirement that provides importers with direct visibility into their entry data instead of relying on brokers for an analysis of tariff exposure. Without access, refunds will not be received. Adoption is low, so organizations should prioritize initiating this process to ensure timely receipt of eligible refunds.

The Refund Process: Time-Sensitive Action Required

U.S. Customs and Border Protection (CBP) is developing the Consolidated Administration of Processing of Entries (CAPE), an automated system designed to manage the unprecedented volume of refund requests. CBP has indicated a 45-day timeline for system completion.

CAPE System Development Status (as of March 19):

• Review of Liquidation/Re-liquidation: 80% complete
• Claims Portal Component: 73% complete
• Refund Component: 63% complete
• Mass Processing Component: 45% complete

Organizations should not delay action pending system completion. Proactive steps are essential to meet the eligibility requirements for refunds. Additionally, the U.S. government has not yet appealed the Court of International Trade order, with a deadline running through early May 2026. If an appeal is filed, it may delay the implementation of the refund process and the distribution of funds.

CRITICAL ACTION REQUIRED

U.S. Customs and Border Protection ceased issuing paper refund checks effective February 6, 2026. As announced in the Electronic Refunds Interim Final Rule published January 2, 2026, in the Federal Register (FR Document 2025-24171), all CBP refunds are now issued electronically through the Automated Clearing House (ACH), subject to limited exceptions.

Importers must enroll for ACH refunds through the CBP ACE Portal. Refunds cannot be issued until this process has been completed and banking information has been properly established within the portal.

Current data indicates that only approximately 6% of affected importers have completed ACE portal registration. Organizations that have not yet initiated this process should consider it a priority for the timely receipt of eligible refunds.

IEEPA Tariff Classification and Documentation

The import clearance process involves customs brokers managing electronic filings that include the shippers, consignees, and commodity information based on harmonized tariff codes. Given the complexity of tariff classification across thousands of potential codes, proper documentation is essential for refund eligibility.

IEEPA tariffs were recorded through special provisions of codes within Chapter 99 of the harmonized tariff schedule. These codes appear on the 7501-entry summary form, which documents all duties owed. While customs brokers manage the filing process, the ultimate responsibility for the classification accuracy and compliance resides with the importer of record. Executive teams should make sure their organizations are maintaining independent records rather than relying exclusively on broker documentation.

Strategic Value of ACE Portal Access

ACE portal registration provides organizations with direct visibility into their entry data, enabling independent queries and reports to assess IEEPA tariff exposure. This capability represents a meaningful shift for organizations that have historically relied exclusively on customs brokers for this information.

Upon full CAPE system implementation, a degree of automation in the refund process is anticipated. The system is designed to process claims more efficiently than traditional post-summary correction, and protest procedures would permit at this scale.

Liquidated Entries Beyond the 180-Day Window

Significant uncertainty exists regarding liquidated entries that have exceeded the 180-day protest window. CBP traditionally does not permit protests beyond this timeframe, and some importers have initiated litigation to preserve claims on these older entries.

CBP has not provided definitive guidance on whether protests will be accepted for entries liquidated beyond the 180-day threshold. Organizations with material exposure in this category should consider engaging in trade counsel. Each day that passes results in additional entries crossing this threshold, underscoring the importance of timely evaluation.

Refund Allocation: Downstream Considerations

Beyond the operational mechanics of receiving refunds, organizations face strategic questions regarding ultimate beneficiaries. Many importers allocated tariff costs to distributors and customers, raising questions that extend through multiple tiers of the supply chain.

Documentation of IEEPA-related cost allocation across supply chain participants is generally limited. Refunds are expected to be issued to the importer of record who remitted the original tariff payment. A multi-tiered refund mechanism does not appear to be under consideration at this time.

Organizations employed varying approaches to managing these costs. Some absorbed tariffs entirely to preserve customer relationships; others passed through a portion, and some allocated the full amount. How refunds are addressed with downstream partners will likely depend on contractual obligations, relationship dynamics, and individual negotiation.

Organizations that documented tariff charges as separate line items may face more explicit expectations from customers regarding refund allocation. Those that incorporated costs into broader price adjustments may have greater flexibility, though this approach may also prompt discussions with customers.

The refund process is likely to generate dialogue throughout supply chains as parties assess their respective positions. For end consumers who absorbed higher retail prices, no direct recovery mechanism appears to exist.

RECOMMENDED ACTIONS FOR EXECUTIVE TEAMS

• Initiate ACE portal registration through CBP.
• Resources available at ACE Portal Introduction: https://www.cbp.gov/trade/automated/how-to-use-ace/portal-introduction
• Application Instructions: https://www.cbp.gov/document/guidance/automated-ace-portal-account-application-importers
• Establish ACH banking information for electronic refund receipt, mandatory as of February 6, 2026.
• Conduct internal review of entry data to quantify IEEPA tariff exposure.
• Coordinate with customs brokers to validate anticipated refund amounts.
• Engage trade counsel for entries liquidated beyond the 180-day protest period.
• Develop organizational position on refund allocation with downstream customers.

ACE Account Registration: Recommended Process

Ms. Moroney outlined the following steps for organizations initiating ACE portal registration:

ACE ACCOUNT SETUP PROCESS

Step 1: Identify Sub-account Type

1. Determine which Sub-Account Type your company will need based on your business activity. See the Sub-Account Types section of our Introduction to an ACE Secure Data Portal Account page for details.

Step 2: Designate an Account Owner

1. Select an individual or entity who will serve as the manager of your corporate account.
2. Please note: Account Owners are not required to be the owner of the company.

Step 3: Apply
Complete the applicable application method below:

1. Protest Filers: Apply here (How to Apply for an ACE Protest Filer Account Form video)
2. Exporters: Apply here (How to Apply for an ACE Export Account video)
3. Importers: Apply here
4. Automated ACE Portal Account Application for Importers Guide
5. This application is ONLY for trade parties with an existing CBP Form 5106 (5106 record) on file with CBP and without existing ACE Portal account access
6. All other trade activities: Apply here using the ACE Data Portal Account Application Form.
7. To submit this application, please email the completed form to ace.applications@cbp.dhs.gov.
8. Processing this last application type typically takes up to 3-5 business days, but due to the high volume of applications, processing of your application may take longer.
9. If you have applied for an account and need to check the status, please e-mail ACE Support.

Step 4: Log in and Set Up an Account
Once the account is established, the Account Owner may log in, set up the account, and create user profiles and sub-accounts. If you are the Account Owner and need more details on these actions, please visit our Managing an ACE Secure Data Portal Corporate Account page or our ACE Training page for detailed step-by-step instructions on different account management functionality.

The registration process is straightforward but requires accurate contact information that is listed on your Customs Form 5106. If you are unsure about the information listed in your CF5106, your broker can provide it. Contact us today to find out how we can support you.