Still waiting on your IEEPA tariff refund? This IEEPA Tariff Refund Update explains the latest developments and the steps importers should take to protect their claims. Recent court decisions ordering the U.S. government to return the International Emergency Economic Powers Act (IEEPA) tariffs to importers have left many companies asking the same questions:
Have I missed my opportunity to request a refund?
Why haven’t I received my refund yet?
Are there any new developments in the refund process?
Should I be doing something now?
If your company paid IEEPA tariffs, now is not the time to assume everything will work itself out. Whether you have already submitted refund requests or have not yet taken action, there are several important steps you should consider to protect your rights and maximize any potential recovery.
Have I missed my opportunity to request a refund?
Many importers mistakenly believe that once the court issued its decision, refunds happen automatically.
Or they are simply overwhelmed by the complexity of the process. Either way, it may not be too late to file and trusted advisors can help!
Depending on the status of your entries, you can likely still file your refund claim through CBP’s ACE portal.
If your entries have timed out of Phase One (their liquidation dates are more than 80 days beyond the current date), you still have a chance to recover the tariffs in a future phase, but you must protect your right to a refund through protest and/or legal action.
The first step is understanding which entries may still be eligible for a refund.
Review Every Entry That Included IEEPA Duties
Start by reaching out to a trusted advisor that can help you gain access to your ACE account, compile the entry data necessary for your claim, enter your banking details into ACE and submit a claim for your refund.
If your entries have timed out of Phase One, experts can help you decide whether protests and/or legal action may be warranted to protect your right to a future refund.
Don’t leave money on the table! Dimerco’s team of compliance experts can help walk you through the steps to ensure you recover what’s owed to you.
Don’t Ignore Protest Deadlines
The most important date is not the date of your entry. It’s the deadline for challenging a specific customs entry, or 180 days after the date of liquidation.
If you were unable to file your Phase One claim, and your entry is already more than 80 days past liquidation, it’s important to file a protest to keep your entry open for a future IEEPA refund claim before the 180 day timeline expires.
If a protest deadline expires before appropriate action is taken, refund opportunities may be more limited.
Every importer should understand which entries remain open and which deadlines are approaching.
Why haven’t I received my refund yet?
If you already filed your refund claim, keep monitoring your claims using CBP’s recommended ACE reports (the Rev-603, Rev-613, Rev-615 and Es-022 reports) until you’ve received 100% of the tariffs owed back to you.
Using CBP’s recommended ACE reports, you can track the status of your refunds and their liquidation or reliquidation dates.
Generally, refunds are transmitted to the Department of the Treasury 14 to 16 days after CBP removes the IEEPA tariffs from the entry and liquidates or reliquidates the transaction.
This transmission date is known as the Refund Date on CBP’s ACE reports mentioned above. The funds are then transmitted to the importer within a couple of business days of the Refund Date.
Common reasons your refund may be delayed
If your ACE CAPE reports indicate the refund has already been issued, but you haven’t received the funds, there are several possible reasons. Here are some examples along with best next steps for each:
1.) Your refund may have been sent to your Customs broker if you signed a 4811 directing your refunds be sent to them. If a party is listed in the 4811 field in your ACE reports and that same party is listed in the Notify Party tab in your ACE account, your refund was likely routed to that party/broker.
Reach out to them to track your refund. They are legally obligated to send you an accounting of refunds received on your behalf and to return the funds to you (potentially minus any money you currently owe them).
2.) Your refund may have been used to offset an open Customs bill. If your refund was diverted to an open Customs bill, you’ll see this note in the Secondary status column in your ACE reports.
3.) Your refund may have been diverted to a state or federal agency to pay an outstanding tax bill that may or may not be known to you. In this case, reach out to CBP at [email protected] or [email protected] to learn where your refund was routed.
4.) Your refund may have been rejected because your banking information is missing or inaccurate in ACE. If this is the case, you’ll see your refund listed on the ACE Rev-013 report. If you see a refund on this report, you can update your banking information in ACE and then email CBP at [email protected] to ask them to reissue the refund.
5.) There are, of course, other reasons for a missing refund. Reach out to your trusted advisor who can help use ACE reports to track down the money owed to you.
If your ACE CAPE reports indicate the refund has not yet been issued, or if you’re having difficulty interpreting the reports, reach out to a trusted advisor for help. Ultimately, you may need to contact CBP for more information at [email protected].
Are there any new developments in the refund process?
Yes. On June 29th, CBP opened Phase Two of the refund process for entries flagged for reconciliation. As with Phase One, only unliquidated entries and entries less than 80 days beyond liquidation are eligible for Phase Two.
CBP has also made updates in its ACE system, too, that are sometimes allowing previously rejected entries to be accepted in a CAPE claim. If you have a previously rejected entry, try resubmitting your refund claim. It may be accepted now.
And finally, CBP has indicated that it will open Phase Three of the refund process about four weeks after Phase Two (roughly the end of July) to fully liquidated entries that didn’t qualify for Phase One (more than 80 days past liquidation).
Given the Administration’s recent appeal of the order to refund all IEEPA tariffs to all importers, however, it’s unclear whether and how this phase of the process may actually roll out.
Should I be doing something now?
Yes! Stay current on legal developments for your refunds that were not covered in Phase One or Phase Two of the IEEPA claims process.
The legal landscape surrounding IEEPA tariffs continues to evolve. Appeals, court rulings, and new CBP guidance could affect refund procedures, eligibility, and timing. Importers should monitor developments closely rather than assuming the current process will remain unchanged.
If you haven’t filed your refund yet
- Don’t wait! Reach out to a trusted advisor today for help.
- Regularly check that your ACH Refund Account enrollment is active in ACE and the banking information listed is correct.
If you’ve already filed your claim
- Track liquidation dates carefully on entries that did not qualify for the first or second phase of refunds and preserve your right to a refund through protest and/or legal action.
- Track liquidation for CAPE-filed entries if you have any additional changes you need to make through a post-IEEPA refund protest within the 180-day window.
- Ensure you’ve checked the Claim Status tab for your CAPE filing and resolve any entries in error status with your broker or CBP.
- Refile CAPE claims for any entries that were rejected but have since been corrected.
- Track your refunds using the CBP-recommended CAPE reports. Be sure you’ve received the refunds owed to you and investigate any discrepancies between the refund amount paid and the amount you believe is due.
Protect your future refund opportunities
- Maintain entry-level documentation for all entries in case CBP requests additional information.
- Verify that the refund amount received matches the total amount shown in your refund reports.
- Begin tracking your Section 122 tariffs. No action is necessary yet, but the refund process may follow a similar path if those tariffs are later ruled unlawful.
- Review the Notify Parties tab in ACE to ensure there are no outdated Form 4811 authorizations that could divert refunds to a third party.
- Protect your refunds and ACH Refund Account information by removing ACE access for employees or third parties who have left your company or no longer require access.
Don’t Miss Your Refund Opportunity
The window for recovering IEEPA duties is still open! Companies that have not yet filed for a refund should take action quickly. And those with pending refund requests should continue monitoring and reconciling their claims.
Recovering tariffs is not easy. If your company paid IEEPA tariffs and you’re unsure whether you’ve taken every step necessary to recover 100% of the money owed to you, now is the time to take the above steps and consult with a trusted advisor for help.
A proactive assessment today may preserve opportunities that could benefit your company tomorrow.
