Source: U.S. Supreme Court
The federal government has opened the door for businesses to reclaim tariffs paid under emergency powers that the Supreme Court ruled unconstitutional in February. For tax practitioners, this is a meaningful client service opportunity, but the window requires prompt action.
What Happened
In February, the Supreme Court struck down tariffs imposed under the International Emergency Economic Powers Act of 1977, finding they violated Congress's taxing power. U.S. Customs and Border Protection has since launched the CAPE system (Consolidated Administration and Processing of Entries) to process refunds on those duties, including interest. The portal opened on April 20 and is accepting claims now.
Your priority outreach should be any client who imported goods into the United States between 2024 and the court's ruling in early 2025. That includes manufacturers sourcing materials or components abroad, retailers importing finished goods, and distributors who brought in inventory from overseas markets, particularly China, but also other countries subject to IEEPA tariffs. If a client has ever mentioned tariffs as a cost pressure, they belong on your call list this week.
What the Filing Process Looks Like
Claims are filed by the importer of record or an authorized customs broker through an ACE Secure Data Portal account using a CSV file. The CAPE system is designed to process refunds in bulk rather than entry by entry, which is a meaningful improvement over earlier refund mechanisms. CBP anticipates valid refunds will be issued within 60 to 90 days of a Declaration being accepted, though entries under review or in warehouse status may take longer.
Four components make up the CAPE system: a claim portal for data entry, a validation layer, a mass processing system, and a liquidation step where refund amounts are recalculated. The data requirements are detailed; every container and shipment must be logged individually, meaning clients with high import volume are looking at a significant data gathering effort.
Where You Come In
Many of your business clients will not have an active ACE Portal account, and some will not know they are eligible. Your role is threefold: identify which clients imported goods during the relevant period, communicate the opportunity and timeline, and help them understand what they need before filing.
At a minimum, each client filing through CAPE will need an established ACE Secure Data Portal account, banking information entered into the portal for electronic refund receipt, and a completed CAPE Declaration. Eligibility does not equal readiness. Gaps in portal access or disorganized import records will delay refunds regardless of how strong the underlying claim is.
This is also a natural moment to loop in a licensed customs broker if your practice does not handle customs work directly. A referral to a qualified broker, paired with your coordination on the business side, positions you as the hub of the client's professional team and ensures nothing falls through the cracks.
Refunds in some cases could be substantial. For clients who spent years absorbing tariff costs, now is the time to act.
Dr. Christine Gervais is a licensed CPA, using her skills to help businesses grow and achieve their fullest potential. Christine has a Master’s degree in accounting from Southern New Hampshire University in addition to holding her CPA license for over a decade. Notably, Christine is a nationally recognized speaker providing education to other CPAs on how to best serve clients as well as instruction on a wide variety of topics for business owners on how to maximize success. Christine prides herself on the value she can bring to clients with her extensive tax knowledge and provides strategic, forward-thinking financial strategies to help clients grow. When not behind her desk, you can find Christine spending quality time with her daughter and stepson or tending to the family’s excessively loved farm animals.
Subscribe to the TPN Newsletter!
Like what you're reading?
Subscribe to our FREE newsletter and we'll deliver content like this directly to your inbox.