IEEPA Tariff Refunds: A Practical Playbook

The refund portal for tariffs recently overturned by the Supreme Court is now open, and the dollars at stake for Connecticut manufacturers are real.

Customs and Border Protection estimates it owes refunds to hundreds of thousands of importers nationwide, and Connecticut manufacturers account for a meaningful share.

But a refund does not simply arrive because the law changed.

Recovering that money requires action and the exact path forward is highly company specific.  

Based on recent client work, we’ve prepared a practical guide to help more Connecticut manufacturers assess their upside (or exposure), navigate the new Claims and Allowances for Post-Entry refunds portal, and address the thornier questions that arise when you are not the official importer or when a customer demands you pass through the refund money to them. 

Step One: Determine Your Eligibility  

Eligibility turns on one threshold question: were you listed as the Importer of Record on the relevant customs entries?

If so, you are likely entitled to a full refund of duties paid under the International Emergency Economic Powers Act, plus interest, claimed through the CAPE portal. 

Duties imposed under other statutory authorities, such as Section 301, Section 232, or pre-existing antidumping and countervailing duty orders, are not part of this refund effort and must be separated from your data before filing.  

Step Two: Organize and Scrutinize Your Data 

Manufacturers should begin by pulling every customs entry summary filed during the relevant window. 

At least some CAPE submissions will likely draw CBP review, which could surface otherwise dormant import compliance issues. 

If your classification or valuation practices have been inconsistent, a refund filing may bring that to light.

Treat this as an opportunity to audit your own house before the government does it for you. 

Step Three: File Through CAPE 

CBP has published guidance for the refund process and the CAPE tool. 

Manufacturers should follow that guidance carefully and preserve documentation of every submission.  

A note on timing: although submissions are being accepted now, it could be 60 to 90 days after a submission until refund money actually hits accounts. 

Plan accordingly and do not budget the refund as available cash until it arrives. 

When You Are Not the Importer of Record 

Many Connecticut manufacturers purchase imported components or materials from distributors or from foreign suppliers that maintain a U.S. importing entity.

In those arrangements, the supplier, not the manufacturer, is typically listed as the Importer of Record and is likely the party with standing to file a CAPE claim. 

That does not mean the economic burden fell on the supplier.

In many cases, IEEPA duties were passed through to the manufacturer/buyer in the form of higher prices, surcharges, or revised contracts.

Recovery in this scenario is more complex and may require supplier negotiations, contract review, or equitable claims.  

Manufacturers in this position should start making preparations.

Recovery in this scenario is more complex and may require supplier negotiations, contract review, or equitable claims.  

First, review your purchase agreements and invoices from the tariff period. Determine whether you were charged line-item tariff surcharges or whether pricing simply increased during the relevant window.

Second, identify who the Importer of Record was for each transaction.

Third, open a line of communication with the supplier promptly.  

The strongest posture is cooperative: request that the supplier file for the refund through CAPE and pass through a fair share of refund proceeds to you, with documentation supporting the amount.

If your contract included a tariff pass-through provision or price adjustment clause, that language is your leverage.

If the supplier refuses, you may need to evaluate contract remedies, unjust enrichment theories, or other equitable claims. 

Statutory deadlines apply and a delay may be costly for both you and your supplier.  

When a Customer Demands You Pass Through the Refund 

The reverse scenario is also likely. Manufacturers who are the Importer of Record may find that their downstream customers insist on being refunded, particularly if the manufacturer passed IEEPA-related cost increases through to the customer. 

Before responding to any such demand, manufacturers should evaluate several factors.

Did your contracts with the customer contain a tariff surcharge or price escalation clause that expressly linked pricing to IEEPA duties?

If so, the customer may have a reasonable contractual basis for arguing that a refund of the underlying duty should flow back to them.

If, on the other hand, your pricing simply reflected general cost-of-goods increases without tying any line item to IEEPA duties specifically, the customer’s claim is weaker. 

If you held your pricing flat through the relevant time period, you likely have a strong position to deny your customer a pass-through.   

If you held your pricing flat through the relevant time period, you likely have a strong position to deny your customer a pass-through (even though you may still be eligible for refunds).   

The Importer of Record is generally the only party entitled to refunds upon submission of a timely CAPE claim. 

There is no automatic pass-through obligation to benefit a downstream customer absent a contractual or equitable basis for one. 

Manufacturers should not simply agree to pass through refund dollars without understanding the legal and commercial landscape.

At the same time, preserving customer relationships matters, and a reasonable negotiated outcome may be preferable to a dispute. 

The Bigger Picture 

Connecticut manufacturers felt firsthand what a year of IEEPA tariffs did to margins, supply chains, and pricing stability.

Refunds will not undo those disruptions, but they return capital to a sector that needs it.

The manufacturers who move urgently but methodically, assembling their data, filing accurately, and addressing supplier and customer dynamics head-on, will be the ones in the best position to see much of that money come back.  

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For more information about Shipman’s manufacturing practice, please contact Alfredo Fernández at 860.251.5353 or [email protected].