U.S. Customs and Border Protection Launches Tariff Refund Portal Following Supreme Court Decision

U.S. Customs and Border Protection rolled out the first phase of its electronic tariff refund system, known as the Consolidated Administration and Processing of Entries (CAPE), on Monday, allowing importers to apply for refunds on tariffs struck down by the Supreme Court. The system provides access to $166 billion collected from duties ruled unconstitutional, @FortuneMagazine reported.

S. Refunds are to be distributed 60 to 90 days after processing, the agency stated. Small businesses, operating on tight margins, have struggled with tariff costs, often lacking resources to stockpile inventories or absorb expenses without raising consumer prices.

A Federal Reserve survey published last month found 42% of small firms cited rising costs from tariffs as a primary financial concern. Separately, a March report from the Center for American Progress indicated small businesses paid $306,000 in tariffs on average last year.

Larger companies like Costco and FedEx have sued the Trump administration to ensure eligibility for refunds, highlighting disparities in access to legal support.

Dan Anthony, executive director of We Pay the Tariffs, described the burdens on smaller firms. 'What you end up with is small-business owners or someone who does product development, who is now expected to be a tariff expert,' Anthony said. His coalition represents small businesses opposing the administration’s tariff policies, noting that owners often divert resources from product development and growth to handle compliance.

Matthew Seligman, founder and principal of Grayhawk Law and a federal litigator focusing on constitutional law, expressed concerns about the process. 'Especially given the uncertain legal environment that we’re operating in right now, I am deeply worried that small and medium-sized importers are going to end up losing their refund rights because they haven’t had access to trade counsel to help back them through it,' Seligman said.

He pointed to tight application windows, such as the 80-day limit for liquidated entries, and potential technical glitches in the CAPE portal that could lead to ineligibility.

Small businesses face additional challenges, including tight cash flows and lack of liquidity, Anthony explained. Some have increased lines of credit or taken second mortgages to manage tariff impacts, viewing refunds as a lifeline. Others with higher risk tolerance use refund claims as loan collateral or sell rights for immediate cash, though many adopt a wait-and-see approach to maximize returns.

Legal uncertainties persist, including whether the Trump administration will appeal orders for universal refunds, Seligman noted. Ineligible importers may need to file protests with Customs or sue in the Court of International Trade, processes that remain unclear. Small firms without counsel risk missing these steps, potentially forfeiting refunds permanently.