The $127B IEEPA Tariff Refund is Live after Supreme Court Ruling

Businesses that paid IEEPA tariffs now have a path to recover that money. The Supreme Court struck those tariffs 6–3, and CBP's CAPE portal opened on April 20 for refund filings. As of April 14, 56,497 importers had registered for a combined $127 billion in refunds, including interest, out of more than 330,000-plus importers who paid IEEPA duties.

This guide covers which tariffs qualify for a refund, how to check your eligibility, what to know before filing, how the CAPE submission works, and how to record the refund without creating problems at tax time.

In brief:

• The Supreme Court ruled 6–3 that IEEPA-based tariffs are unconstitutional. CBP's CAPE portal opened April 20 with $127 billion in approved refunds available, including interest.
• Refunds go only to the Importer of Record. If your company bought from a domestic distributor rather than importing directly, the distributor holds the claim.
• Only IEEPA tariffs qualify. Section 232 steel and aluminum duties, Section 301 China tariffs, and the new Section 232 pharmaceutical tariffs are excluded from the CAPE program.
• Under U.S. GAAP, the refund is a gain contingency and cannot be recognized until CBP approves the claim or cash is received. It is likely taxable income in the year received.
• CAPE processing takes 60–90 days after CBP accepts the declaration. For entries approaching their liquidation deadline, waiting risks losing the claim entirely.

What does the $127B tariff refund program cover?

The IEEPA tariff refund is a court-ordered program, not a government grant or stimulus check. The Trump administration used IEEPA to impose broad reciprocal tariffs beginning April 2025, with a 10% minimum effective April 5, 2025 and higher rates on certain countries starting April 9, 2025.

The Supreme Court ruled 6–3 in Learning Resources that IEEPA does not give the president authority to impose trade tariffs, and the Court of International Trade directed CBP to process refunds under specified procedures.

Who doesn’t qualify for IEEPA tariff refunds?

The CAPE program covers only IEEPA tariffs, and the following categories do not qualify:

• Section 232 steel and aluminum tariffs: Still in effect at 50%. See April 2026 tariff changes for the full rate structure and derivative product rules.
• Section 301 China tariffs: Active under a separate legal authority with no refund program through CAPE.
• New Section 232 pharmaceutical tariffs: Signed April 2, 2026, at a 100% base rate on patented pharmaceuticals. Effective July 31, 2026, for named companies and September 29, 2026, for all others. Generic drugs are excluded.

Checking which tariff category applies to your shipments is the first step before deciding whether a claim is worth pursuing.

Who qualifies for IEEPA tariff refunds?

Refunds go to the Importer of Record, the business that officially paid customs duties when goods crossed the U.S. border. If your company bought goods from a domestic distributor or wholesaler, you won't be eligible for a refund claim. There are no business size requirements.

To check eligibility, confirm three things with your customs broker:

• Your company is the Importer of Record on the relevant entry summaries
• Those entries were subject to IEEPA Chapter 99 tariff provisions
• The entries fall within CBP's Phase 1 window, either unliquidated or finalized within the eligible period

Separately, make sure your ACE Secure Data Portal account has a bank account enrolled for ACH payment. CBP stopped issuing paper checks on February 6, 2026. As of mid-April, more than 56,000 of the 330,000-plus affected importers had completed that setup, so doing it now is worth prioritizing before you file.

What do you need to know before you file for IEEPA tariff refunds?

Filing a refund claim puts your import records under CBP scrutiny during a period of heightened enforcement. Trade attorneys have noted that CAPE submissions can prompt CBP to cross-check the accuracy of HTS classifications, valuation methods, and country-of-origin declarations on underlying entries.

Federal law requires importers to keep records for five years from the date of entry, and CBP can impose significant civil penalties under 19 U.S.C. § 1592 if records can't be produced promptly during a review.

Two situations need extra attention before your team submits:

• If your products fall into categories where IEEPA and Section 232 tariffs may be stacked, such as semiconductors, automobiles, and metals, have a customs broker review those entries first.
• If your company added explicit tariff surcharges to customer invoices during 2025, review those customer contracts before assuming the full refund stays with your business.

Once those two questions are resolved, the mechanics of filing are more manageable than most importers expect.

How to file through the CAPE portal

The filing itself is simpler than most people expect. Your customs broker or team uploads a CSV of entry numbers to CBP's ACE Secure Data Portal under the new CAPE tab. CBP does not require HTS codes, dollar amounts, or invoices in the file, just entry numbers, with each CAPE Declaration limited to 9,999 entries.

If your volume exceeds that limit, multiple declarations can be submitted. Your customs broker almost certainly already has these numbers compiled.

Before uploading, two prerequisites trip most first-time filers. An Importer sub-account view in ACE is required to authorize ACH refunds, and bank details must be entered and authorized through that sub-account before CBP will release any funds.

After CBP validates entries and removes the IEEPA charges, it consolidates everything into a single ACH payment within the 60–90 day window.

How to record the tariff refund

Under U.S. GAAP, the refund is a gain contingency that cannot be recognized until CBP approves the claim or cash arrives. For businesses with a December 31, 2025, fiscal year, the Supreme Court ruling is a Type II subsequent event under ASC 855, meaning it belongs in the 2025 footnote disclosures, while the actual refund is recorded in 2026.

How to book the refund when it arrives

When the refund arrives, the entry depends on how the original tariff costs were booked. If they went into cost of goods sold (COGS) or operating expenses, the most common treatment for smaller importers, the refund shows as a COGS reduction or Other Income entry.

The cash arrives as a lump ACH payment from CBP and flows into your free cash flow for the period it is received. A few steps help avoid accounting headaches later:

• Create a dedicated tracking account: "Tariff Refund Receivable, CBP" keeps the claim separate from regular accounts receivable and makes status easy to track at month-end.
• Set aside a tax reserve immediately: The refund is likely taxable income in the year received under the tax benefit rule, since those tariff costs were previously deducted. Calculate your marginal rate and set that percentage aside before spending the rest.
• Label it as non-recurring: A large one-time refund will spike net income and gross margin for the quarter. If your financials go to lenders, investors, or a potential acquirer, call it out explicitly so nobody models that margin improvement as repeatable.
• Notify your lender proactively: A sudden cash inflow may affect borrowing base calculations or covenant discussions depending on your credit agreement, so give the lender a heads-up before it appears in your financials.

The immediate priority is to compile entry numbers and check liquidation status, either through your customs broker or directly in ACE. When you reach out to your broker, have your ACE login credentials ready and a list of the HTS codes your company imported since February 2025.

If IEEPA-related tariff costs are already recorded in your accounting system, flag those entries now so your CPA can coordinate the accounting and tax treatment when the refund arrives.

Frequently asked questions about IEEPA tariff refunds

Do I need a customs broker to file a CAPE declaration?

A CAPE Declaration can be submitted by the Importer of Record directly through ACE or by a broker on the importer's behalf. Most businesses still need broker support to compile entry numbers, verify liquidation status, and identify stacked-tariff categories that could create compliance exposure before filing.

Are IEEPA tariff refunds taxable?

The refund is likely taxable income in the year received. Since tariff costs were previously deducted as business expenses, the IRS tax benefit rule generally treats their recovery as taxable income. The IRS has not yet issued specific IEEPA guidance, so discuss timing and treatment with a CPA before the refund arrives.

What if my entries are already liquidated?

Entries still within the Phase 1 window may qualify for the initial refund program. For entries finalized outside that window, a formal customs protest filed within the applicable deadline may be required, and that deadline is a hard cutoff. Contact a customs broker or trade attorney immediately if the liquidation status is unclear.

Will the refund go to my customers if I raised prices during 2025?

Refunds go to the Importer of Record, not downstream customers. However, businesses that added explicit tariff surcharges to customer invoices in 2025 may face contract-based arguments from those customers. Review pricing history and customer agreements with legal counsel before assuming the full refund stays with your company.

What happens if CBP finds errors in my import records after I file?

Filing may trigger additional CBP review if a compliance concern is identified. Civil penalties under 19 U.S.C. § 1592 can be significant depending on the severity of the violation. Review your import records for HTS classification accuracy and valuation accuracy before submitting.