Beginning Monday, businesses may claim refunds for Trump’s unconstitutional tariffs, though it will take 60 to 90 days to receive the funds

(SeaPRwire) –   A system to refund businesses for tariffs that the U.S. Supreme Court determined were unconstitutionally imposed by President Donald Trump is set to begin operating on Monday.

Starting at 8 a.m., importers and their brokers can file claims for reimbursements via an online portal, as announced by U.S. Customs and Border Protection (CBP), the agency overseeing the process.

This marks the initial phase of a complex procedure that could later extend to providing refunds for consumers who were charged for these tariffs on goods shipped to them from abroad.

Businesses are required to file declarations detailing the products on which they paid billions in import taxes that were later invalidated by the court. CBP stated that once a claim is approved, the refund will be issued within 60 to 90 days.

The government plans to handle refunds in stages, prioritizing more recent payments. However, various technical and procedural challenges could slow down an importer’s application, meaning any reimbursements companies intend to pass on to customers will likely be distributed gradually.

On February 20, the Supreme Court ruled 6-3 that Trump overstepped Congress’s authority last April by establishing new import tax rates for products from most other countries. The ruling stated he incorrectly cited the U.S. trade deficit as a national emergency to justify using a 1977 emergency powers law.

While the majority opinion did not mention refunds, a judge at the U.S. Court of International Trade ruled last month that companies that paid these IEEPA tariffs have a right to be reimbursed.

Not all taxed imports immediately eligible

According to court documents, Customs and Border Protection reported that more than 330,000 importers paid approximately $166 billion in tariffs on over 53 million shipments.

However, not all these payments are eligible in the system’s first phase, which is restricted to cases where tariffs were estimated but not finalized, or were within 80 days of a final accounting.

To obtain refunds, importers must register for CBP’s electronic payment system. The agency reported that as of April 14, 56,497 importers had registered and were eligible for refunds amounting to $127 billion, including interest.

System requires accuracy

Meghann Supino, a partner at the law firm Ice Miller, said they have counseled clients to meticulously include all relevant document numbers from CBP forms that describe imported goods and their value in their declarations.

“If an entry in that file is ineligible, it could result in the rejection of the entire entry or just that specific line item by Customs,” she explained.

Supino believes that the portal’s launch will demand both patience and careful attention.

“As with any new online system that generates significant interest, there could be some initial hiccups on Monday,” she noted. “Therefore, we advise everyone to remain patient, as we believe it will be worthwhile.”

Nghi Huynh, the partner-in-charge of transfer pricing at accounting firm Armanino, mentioned that most companies seeking refunds imported various items, and not all will be eligible immediately.

“The key is to establish a clear procedure and meticulously track what has been submitted and paid to ensure nothing is missed,” she said. “Files can contain thousands of entries, but precision is vital because submissions may be rejected for incorrect formatting or data.”

Patience with the process

Small businesses have been anticipating the opportunity to seek refunds. Brad Jackson, co-founder of After Action Cigars in Rochester, Minnesota, said he began gathering records and preparing his information as soon as CBP announced the start date.

His company imports cigars and accessories from Nicaragua and the Dominican Republic. Jackson stated that last year, the business paid $34,000 in tariffs and chose to absorb most of the cost rather than increase prices for customers.

He added that after a two-week shipping delay last spring due to a missing document, he is being extra cautious with the refund paperwork.

“My primary worry is the processing time,” Jackson said. “A refund procedure that lasts several months does not address the cash flow issue it is intended to resolve.”

Will consumers see refunds?

Tariffs are paid by importers, and some businesses transfer these tax costs to consumers through higher retail prices.

The system launching Monday will reimburse the companies that paid the tariffs directly, and they are not required to pass on the refunds to their customers. Nonetheless, class-action lawsuits seeking to compel companies—from Costco to Ray-Ban manufacturer Essilor Luxottica—to reimburse consumers are progressing through the U.S. legal system.

Individuals might have a better chance of receiving refunds from shipping companies like FedEx and UPS, which collected tariffs directly from consumers. FedEx has committed to returning any tariff refunds it receives from CBP to its customers.

“Helping our customers manage regulatory changes is our highest priority,” FedEx said in a statement. “We are coordinating with our customers as CBP starts processing refunds and intend to begin submitting claims on April 20.”