Billions of dollars in tariff refunds are on the table — and most importers don't know how to claim them yet.

On February 20, 2026, the U.S. Supreme Court ruled that IEEPA (International Emergency Economic Powers Act) tariffs were unlawful. That means duties paid between February 4, 2025 and February 24, 2026 are potentially refundable. But here's the catch: refunds are not automatic. You have to claim them yourself.

Here's everything you need to know.

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Refunds apply ONLY to IEEPA tariffs paid between Feb 4, 2025 and Feb 24, 2026. Section 232, Section 301, and the new Section 122 (15% global tariff) are NOT eligible — and remain in effect.

What Happened: IEEPA Tariffs Struck Down

The Trump administration used IEEPA — an emergency economic powers law — to impose sweeping tariffs starting in early 2025. These included:

  • Fentanyl-related tariffs on China, Canada, and Mexico
  • "Reciprocal" tariffs on dozens of countries
  • Broad import surcharges on most goods

On February 20, 2026, the Supreme Court ruled 6-3 that IEEPA does not grant the President authority to impose tariffs. The power to levy import duties, the Court held, rests with Congress — not the executive branch.

All IEEPA tariffs were immediately invalidated. The administration replaced them two days later with a Section 122 global tariff (more on that below).

How Much Could You Get Back?

Feb 4, 2025 – Feb 24, 2026
Eligible refund window (385 days of IEEPA tariffs)
$180B+
Estimated total IEEPA duties collected in that period
45 days
CBP's estimated processing time per entry once CAPE launches
60–85%
How complete CBP's CAPE system was as of late March 2026

For large importers, refunds could run into millions. For small businesses that paid tens of thousands in duties on goods from China or other affected countries, this is meaningful money.

The 4-Step CAPE Refund Process

CBP is building a new module inside its existing Automated Commercial Environment (ACE) portal called the CAPE Claim Portal (Consolidated Administration and Processing of Entries). Here's how the refund process works:

Step 1: Claim Submission
Log into ACE, navigate to the new "CAPE Claim Portal" tab, and upload a CSV file with entry-level data for every entry on which IEEPA tariffs were paid.
Step 2: Mass Tariff Recalculation
CBP's automated system removes IEEPA tariffs and recalculates duties as if those tariffs never existed.
Step 3: Liquidation Review
Entries proceed through official liquidation or reliquidation. Interest is automatically calculated.
Step 4: Electronic Refund
Refunds are consolidated by importer and liquidation date, then issued via ACH direct transfer to your enrolled bank account.

What You Need to Do Right Now

The CAPE portal isn't live yet (mid-April 2026 expected launch), but there's prep work you can do today that will determine how fast you get paid.

1. Verify your ACE portal access

You need an active account at ACE (cbp.gov/ace). If your customs broker handles filings on your behalf, confirm they have your Importer of Record (IOR) data linked correctly.

2. Enroll in ACH refund payments

As of February 6, 2026, CBP only issues refunds electronically. Paper checks are gone. If you're not ACH-enrolled, your refund will be delayed or denied. Update your banking info inside ACE now.

3. Audit your entry data

Identify every entry from February 4, 2025 through February 24, 2026 on which IEEPA tariffs were paid. Your customs broker can pull this from their system. You'll need entry numbers, dates, and duty amounts per line item.

4. Prepare your CSV file

The CAPE portal will require a formatted CSV upload. CBP hasn't published the final template yet, but the fields will include: entry number, entry date, IOR number, HTS codes, and duty amounts paid. Start organizing this data now.

5. Consider filing a protective protest

For entries that are already liquidated and within 180 days of liquidation, you can file an administrative protest to preserve your refund rights while the CAPE system spins up. Some legal experts also recommend filing protective lawsuits for fully liquidated entries past the protest window.

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Don't wait. The 180-day protest window is already running on entries liquidated back in 2025. Missing it means losing your right to protest — and potentially your refund.

What's NOT Refundable: Section 122 Tariffs

After IEEPA was struck down, the Trump administration immediately invoked Section 122 of the Trade Act of 1974 to keep tariffs alive. This is a completely different legal authority — and it's NOT covered by the refund ruling.

Key Facts
  • Section 122 tariff took effect February 24, 2026 at 12:01 AM ET
  • Rate: 15% ad valorem on most imported goods (started at 10%, raised to 15%)
  • Duration: Temporary — expires July 24, 2026 unless Congress extends it
  • Exempt: USMCA goods (Canada/Mexico), Section 232 goods (steel/aluminum), CAFTA-DR textiles, some critical minerals, pharma, electronics parts
  • Also still in effect: Section 232 (steel/aluminum) and Section 301 (China) tariffs

The Section 122 tariff is widely seen as a stopgap while the administration pursues new Section 301 investigations. Expect new tariff authority fights in Congress this summer as the July 24 expiration approaches.

Frequently Asked Questions

Who qualifies for a refund? Any U.S. Importer of Record (IOR) who paid IEEPA tariffs between February 4, 2025 and February 24, 2026. This includes businesses that imported directly and those who paid duties through third-party customs brokers.

What if my goods were imported by a foreign seller (DDP)? If the foreign seller paid duties on your behalf under a Delivered Duty Paid (DDP) arrangement, the refund legally goes to whoever was named as the Importer of Record — typically the U.S. buyer. Check your contracts.

Can I get interest on my refund? Yes. CBP will automatically calculate applicable interest as part of the liquidation review step. The interest rate is set by Treasury.

My entry is already fully liquidated and past 180 days. Am I out of luck? Not necessarily. Some trade attorneys recommend filing a protective lawsuit in the Court of International Trade to preserve your rights. This is more expensive, but could be worth it for large duty amounts.

When will CAPE actually launch? As of late March 2026, CBP said the system was 60–85% complete. A mid-April launch is expected, but no official date has been confirmed. Monitor CBP's trade.gov updates and your customs broker's alerts.

Bottom Line

The IEEPA refund window is real and significant — but passive importers will get nothing. The money goes to businesses that prepare now: get ACH enrolled, audit your entries, and be ready to file the moment CAPE goes live.

Estimate your potential refund by adding up all duty payments from Feb 2025–Feb 2026, then subtract any Section 232 or Section 301 duties from that total. The remainder is your IEEPA exposure — and your potential windfall.

For complex situations — large refund amounts, expired protest windows, or DDP import arrangements — consult a licensed customs attorney or trade compliance specialist before filing.