Businesses’ Tariff Refund Claims Rejected by 15%

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SouthernWorldwide.com – Approximately 15% of businesses have had their tariff refund claims rejected since the government’s reimbursement portal was launched on April 20.

U.S. Customs and Border Protection (CBP) reported that as of April 26, the federal agency had received over 75,000 refund requests from U.S. businesses and other importers.

More than 47,000 claims, covering about 11 million tariff payments, were correctly submitted, according to CBP official Brandon Lord in a filing with the Court of International Trade.

The agency introduced the Consolidated Administration and Processing of Entries tariff refund system, known as CAPE, to comply with a court order. This order followed the Supreme Court’s February ruling that invalidated emergency levies imposed by former President Trump.

CBP stated that the CAPE portal is designed to simplify the process of removing duties related to the International Emergency Economic Powers Act (IEEPA). It also aims to reduce paperwork and ensure efficient, compliant claim reviews.

As of April 26, CBP had processed over 11 million entries from businesses. The agency indicated that roughly 1.7 million of these are already in the refund process.

Rejected claims were primarily due to incorrect information or because the tariff payments in question were not eligible for refunds. The agency noted that some claims require corrections, and importers have the opportunity to resubmit them after addressing the issues.

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Nick Richards, a partner at the law firm Greenspoon Marder, who has assisted clients with tariff refund claims, suggested that some businesses might be making errors during the submission process.

He explained that in the initial phase, CAPE only accepts applications for tariffs that have been finalized by CBP or for estimated duties that can still be estimated. Businesses are also limited to seeking refunds for tariffs enacted by the Trump administration under the IEEPA.

“There are parameters, and I would imagine some of the submissions are outside of that scope,” Richards commented, highlighting potential reasons for rejections.

Despite a few initial technical difficulties when CAPE first went live, the portal is generally functioning as intended, according to CBP.

Lord mentioned in the filing that the system experienced an 18-minute downtime on April 20, 2026. During this brief period, CBP paused submissions to reconfigure resources and optimize the processing of CAPE declarations.

Richards acknowledged that the process appears to be progressing smoothly, despite minor issues. He commended CBP for the rapid development and implementation of the portal.

“I was amazed at the speed with which Customs put up this portal, so kudos to them,” he said. “They’ve done an amazing job rolling this out.”

However, some business owners have reported difficulties in submitting their refund claims, which they consider vital for their operations.

Beth Benike, co-founder of Busy Baby, a Minnesota-based manufacturer of baby products, shared her struggle with an importer account issue that prevents her from submitting a refund claim through CAPE. She has not yet received assistance from customs officials to resolve this problem.

“I get an error that says my tax ID is linked to someone else’s account,” Benike stated. She has spent considerable time on hold with federal officials, time that detracts from managing her small business.

“I wear all of the hats. I have a lot to do and can’t sit here for hours and hours trying to get through to fix an error on their end, when I’ve submitted tickets, gone through the process and done all the things I’ve been told to do.”

Despite these obstacles, Benike remains optimistic about receiving the approximately $50,000 owed to Busy Baby for IEEPA duties paid. She anticipates a lengthy process, even after her account is set up and approved.

“I do think eventually I’ll get refunded, once I set up my account, they approve and then wait 60 to 90 days,” she said. “I am still looking at several months until I see the money once I’m able to submit.”

Benike expressed that receiving the refund would feel like “a huge weight” has been lifted from her shoulders.

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