Tariff refunds

UPS, FedEx and DHL seek tariff refunds. Customers may have to wait

The companies say they will pass along approved IEEPA refunds to customers who paid the duties, but only importers of record can file and CBP processing may take months

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UPS, FedEx and DHL seek tariff refunds. Customers may have to wait
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United States
United States
UPS, FedEx and DHL are seeking refunds for certain invalidated tariffs and say customers who paid those charges may receive money back after CBP approves claims.
Consumer refunds DHL FedEx Tariffs UPS

UPS, FedEx and DHL are seeking refunds for certain invalidated tariffs and say customers who paid those charges may receive money back after CBP approves claims.

UPS, FedEx and DHL have begun seeking refunds from U.S. Customs and Border Protection for certain tariffs invalidated by the Supreme Court, starting a process that could eventually return money to customers who paid the charges.

The refunds are not automatic for consumers, and they may not arrive quickly. CBP opened its refund portal Monday for importers of record to submit claims tied to duties collected under the International Emergency Economic Powers Act, or IEEPA. The Supreme Court ruled in February that those tariffs had been improperly imposed.

For consumers and small businesses, the key detail is who was listed as the importer of record. Only that party can file through CBP’s Consolidated Administration and Processing of Entries portal, known as CAPE. If a shipper such as UPS, FedEx or DHL handled that role, the customer cannot file directly with the government and must wait for the company to obtain the refund first.

UPS confirmed Tuesday that it is filing claims for qualifying tariffs through the CAPE portal. The company said it will seek refunds for shipments where UPS was the importer of record and reimburse customers who paid the levies once the federal government approves and pays the claims.

“For shipments where UPS was the IOR, we will work to request and retrieve IEEPA tariff refunds from CBP on our customers’ behalf,” UPS said in guidance posted on its website. “There is no need for those customers to contact UPS. After we receive the funds from CBP, we have established a process to issue refunds to the payors.”

CBP has said successful applicants will receive refunds within 60 to 90 days of claim approval. UPS also cautioned that it cannot issue refunds to customers until it receives money from CBP.

FedEx said it has also begun filing claims with CBP and intends to pass refunds on to shippers and consumers who originally bore the charges if the government issues refunds to FedEx. The company said it will generate the reports needed to support refund claims for customers. DHL said it started submitting claims when the portal opened and will pass refunds to the party that originally paid the duties as it receives money back.

The companies have not disclosed how much they are seeking in refunds.

The refund process covers IEEPA tariffs that were invalidated by the Supreme Court. It does not apply to all tariffs paid by importers or consumers. CNBC reported that other duties, including those under Section 232 of the Trade Expansion Act of 1962 and Section 301, remain in place.

CBP is also handling the process in phases. The first phase covers refund requests for entries finalized by CBP within the past 80 days, according to CNBC. UPS said it has received guidance only for the first phase so far.

The refund push comes as President Donald Trump publicly urged companies not to seek money back. He told CNBC on Tuesday that he would “remember” U.S. companies that do not submit CAPE declarations and said it would be “brilliant” if firms did not ask the federal government for refunds.

For now, customers who paid IEEPA-related tariff charges through major shippers are waiting on two steps: approval from CBP and payment to the companies that filed the claims. Only after that can shippers begin sending refunds to the people and businesses that paid the duties.

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