Tariff Refund Guide

Where Are You in the Process?

Broker Coordination and Responsibilities

Your customs broker is a critical partner in the refund process, but their role has limits. Understanding the division of responsibility helps avoid gaps.

What Your Broker Can Do

• Pull ACE entry data and generate reports across all ports
• Identify IEEPA tariff lines (Chapter 99 subheadings) and distinguish them from Section 232/301
• File protests electronically through ACE as your authorized agent
• Monitor liquidation notices and flag approaching 180-day deadlines
• Coordinate with FCA on documentation and entry schedules

What Your Broker Typically Cannot Do

• Draft the protest memo — the legal justification requires legal expertise, not brokerage services
• File CIT litigation — requires counsel admitted to the Court of International Trade
• Pursue Tucker Act claims — requires counsel admitted to the Court of Federal Claims
• Provide legal advice on recovery strategy, settlement, or court proceedings

Accounting Treatment of Tariff Refunds

IEEPA tariff refunds raise accounting questions that importers should address with their finance teams and auditors early in the process. While specific treatment depends on your accounting framework and circumstances, these are the common considerations:

When to Recognize a Receivable

Under both GAAP and IFRS, a refund receivable is generally recognized when recovery becomes probable and the amount is reasonably estimable. The Supreme Court’s definitive ruling and the CIT’s nationwide order may support recognition for importers who have filed protests or whose entries are covered by the Eaton order — but consult your auditor on the specific timing and probability assessment.

Interest Income

Refund interest under 19 U.S.C. § 1505(c) accrues from the date of deposit to reliquidation. This interest is taxable income in the year received. Track it separately from the principal refund for tax reporting purposes.

Prior-Period Adjustments

For importers that expensed IEEPA duties as part of cost of goods sold (COGS) or inventory costs, refunds may require prior-period adjustments or restatements depending on materiality and the accounting period in which the duties were originally recognized. Coordinate with your auditor.

The Consumer Refund Question

Media coverage has raised significant public interest in whether tariff refunds will reach consumers. This is an important question with a nuanced answer.

Who Receives the Refund?

Under CBP regulations (19 CFR § 24.36), refunds are certified for payment to the importer of record — the party that deposited the duties with CBP. This is typically the company that imported the goods, not the end consumer.

Will Companies Pass Refunds to Consumers?

Some companies (including FedEx and Cards Against Humanity) have publicly pledged to pass IEEPA refunds through to their customers. However, there is no legal requirement to do so unless a specific contract or statutory provision applies. Whether and how companies share refunds with downstream buyers depends on their individual contractual arrangements and business decisions.

What This Means for Importers

If you are the importer of record, the refund comes to you. If you passed tariff costs through to your customers via price increases, you may face commercial (though generally not legal) pressure to share the recovery. Consider your customer relationships, contractual obligations, and public positioning when determining your approach.

Multi-Entity and Related-Party Coordination

Larger organizations often have multiple legal entities that serve as importers of record — subsidiaries, affiliates, or business units with separate importer numbers. Coordinating refund claims across these entities requires attention to several issues:

• Separate entry universes: Each importer of record number generates its own entry data and protest filings. Build a separate entry universe for each entity.
• Consolidated deadline tracking: Track 180-day protest deadlines across all entities in a single dashboard to prevent any entity’s entries from expiring unnoticed.
• Power of attorney: If one entity or counsel is managing protests for multiple related entities, ensure proper powers of attorney are in place for each.
• Refund allocation: Refunds flow to the importer of record on each entry. Intercompany allocation of refund proceeds is an internal accounting matter.
• CIT and Tucker Act consolidation: Related entities may be able to consolidate CIT or Tucker Act claims for efficiency, but each entity must establish its own standing.

Don’t Forget: Section 122 Is Running in Parallel

While you pursue IEEPA refunds, the replacement Section 122 surcharge (10–15%) is in effect for imports on and after February 24, 2026. This is a separate compliance obligation that runs simultaneously with your refund effort. Key actions:

• Map your HTS codes against the Section 122 exclusion list (1,600+ product exclusions)
• Verify the Section 232 non-stacking rule for steel, aluminum, and auto products
• Update landed cost models for the 10–15% surcharge impact
• Track the July 24, 2026 sunset date and prepare for transition to Section 301/232

Section 122 Compliance Guide →

Frequently Asked Questions