US starts $166 billion duty refunds after Trump tariffs quashed—Who can claim & how it works

The United States has formally initiated the process of providing refunds for import duties imposed under emergency powers, following a landmark ruling by the Supreme Court of the United States. The refund process, which kicked off on April 20, 2026, is expected to repay nearly $166 billion to eligible importers.

This follows the decision made by the court in a 6:3 decision, that struck down sweeping tariffs introduced during the Trump administration, in February. The majority held that the authority to impose taxes and tariffs rests exclusively with Congress under the Constitution. The court added that the International Emergency Economic Powers Act (IEEPA) did not confer upon the President the discretionary power to levy tariffs on trading nations. The three justices who dissented argued for wider executive authority in foreign affairs.

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CAPE tool launched for claims

CBP has launched the first phase of the Consolidated Administration and Processing of Entries (CAPE) tool within the Automated Commercial Environment (ACE) Secure Data Portal at 8 AM EST on April 20, 2026. CAPE provides an electronic pathway to submit and process valid IEEPA duty refund claims in accordance with court orders and applicable laws.

The CAPE system is accessible through a dedicated 'CAPE' tab available in Importer, Organisational Broker, and Filer sub-accounts within the ACE Portal.

Refund process and timeline

The United States Customs and Border Protection (CBP) states that the process of valid duty refund claims made under the International Emergency Economic Powers Act (IEEPA) will be carried out systematically, with the refunds expected to be issued in a duration of 60 to 90 days following submission of the claim. This period includes around 45 days for CBP review, along with additional processing time by the US Treasury.

More than 56,000 registered exporters can now begin filing claims. Refunds will be paid electronically through Automated Clearing House (ACH). Recipients must have specific refund bank account details registered with CBP through the ACE Portal, separate from any account used for making payments.

Who can file and receive refunds?

Importers of Record (IORs) and authorised customs brokers can submit claims using a CSV file known as a 'CAPE Declaration' through the ACE Portal. The file contains only a list of entry numbers for which refunds are being requested, and no additional information is required.

Each CAPE Declaration can include up to 9,999 entries, while multiple declarations can be submitted. A template for the CAPE Declaration is available via the 'Upload' button in the CAPE tab. Filers are required to use the ACE Portal and cannot submit declarations through the Automated Broker Interface (ABI).

Only the IOR for the listed entries or the authorised customs broker who filed the entries on behalf of the IOR is permitted to submit the CAPE Declaration.

Scope of Phase 1

Phase 1 of CAPE covers:

• Unliquidated entries
• Entries within 80 days of their liquidation date
• Entries within the 90-day voluntary reliquidation period

It also includes entries that are suspended, extended, or under review, as well as warehouse and warehouse withdrawal entries. Such entries will retain their liquidation status until resolution, with refunds issued after liquidation if validated.

Processing and refund issuance

Once a CAPE Declaration is accepted, the system updates entry summary lines by removing the IEEPA-related Harmonised Tariff Schedule Chapter 99 provisions and associated duties. Following CBP review, entries are liquidated or reliquidated.

A consolidation of refunds will be made to either the Importer of Record or the 'notify' party, if such a notify party has been designated using CBP Form 4811 or the ACE Portal. This is done according to the importer/notify party and the date of liquidation.

Legal and financial conditions

All CAPE-processed refunds are subject to applicable laws and regulations governing liquidation and reliquidation of entries. This includes the netting of overpayments and underpayments for the entire entry, as well as the potential offset of refunds against any legally established and unpaid debts owed to the United States.

No court filing required in Phase 1

For entries covered under Phase 1, importers and authorised brokers are not required to file a case with the Court of International Trade to receive eligible refunds.

What's in it for India?

Out of the total amount, claims linked to India-origin goods are estimated to account for around $10–12 billion, making it a significant component of the broader refund process.

However, only US importers are eligible to file refund claims. Indian exporters do not have direct access to the process, which means any benefit to them will depend on negotiations with their American buyers on a case-by-case basis.

Industry observers note that India’s gains from the development will largely depend on how effectively exporters can engage with US importers to share refunds or adjust pricing structures. The process is expected to vary across contracts and sectors.

Sectors such as textiles, engineering goods, and chemicals—previously impacted by the tariffs—are likely to see the most significant exposure to potential refunds.

Exporters may also benefit indirectly through rebate-sharing arrangements, revised pricing agreements, and improved chances of securing future orders as trade relations adjust to the removal of duties.

Phased rollout ahead

According to CBP, the deployment of CAPE will occur in stages, with more features being added at later stages to cope with increasingly complicated situations. This system is supposed to ensure consolidation of refunds, along with interest payable, rather than handling each entry separately.