Consumers and Small Sellers May Get Tariff Refunds from Shipping Carriers

Customs and Border Protection launched a portal for processing IEEPA tariff refund requests on Monday for importers of record or their brokers. The move came after the Supreme Court ruling in February that struck down the IEEPA-related tariffs imposed by the President.

But consumers and small sellers may be able to get tariff refunds from their shipping carriers. Etsy told sellers on Monday, “In most cases, tariff refunds are handled by carriers, so you’ll need to contact the shipping carrier that managed your orders to understand requirements and next steps.”

Shipping carrier DHL posted an update on its site on Monday that included the following information: For shipments where DHL Express acted as Importer of Record (IOR) DHL Express will automatically file refund claims for eligible Phase 1 entries in accordance with CBP guidance and, once refunds are issued by CBP, will return those funds to the party that originally paid the duties.

For shipments where customers served as IOR, there are two options available If DHL provided customs brokerage services only, refund claims can be initiated by the customer (IOR) directly through CBP’s processes or through an authorized representative.

Or If DHL provided customs brokerage services, the customer can request DHL’s services to file the refund claim. To file, DHL will need either the list of eligible AWBs or the associated entry numbers. Please email your DHL Account Representative for further steps on CAPE claim submission by DHL. DHL’s standard Import Paperwork Fee will apply.

FedEx offered information about tariff refunds on its website that included the following: “Our intent is straightforward: if refunds are issued to FedEx, we will issue refunds for IEEPA tariffs paid to the shippers and consumers who originally bore those charges.

“CBP has advised that it will launch Phase 1 of its refund tool known as CAPE in the ACE Portal on April 20. FedEx is prepared to begin submitting CAPE Declarations on April 20 for Phase 1- eligible entries for which FedEx served as a customs broker.

“FedEx is committed to working expeditiously to issue refunds for IEEPA tariffs paid to its customers for whom it served as customs broker as soon as it begins receiving refunds from CBP.”

Etsy stated on its Seller Handbook, “For sellers who shipped to the US via shipping labels purchased on Etsy, we’re continuing to monitor how refunds may be handled and will share updates as more information becomes available. For shipments not purchased using shipping labels on Etsy, sellers will need to work directly with their carrier.”

eBay also has a page dedicated to the topic of tariffs; it’s unclear if it made any updates to the page on Monday. Under a section called “Important practical points for buyers and sellers,” the page states: “eBay does not hold tariff payments and cannot issue tariff refunds – import fees are collected and passed through to U. S. Customs.

“Refunds are not handled by eBay. Duties or tariff refunds are not automatic; typically sellers are not eligible and, in limited cases, the Importer of Record can pursue refunds with U. S. Customs via the duty-drawback process. “Watch for CBP and government guidance.

Further details on implementation, formal entry, and any administrative changes will come from Customs and Border Protection (CBP); eBay will update the community based on that guidance.” Numerous media outlets reported on Monday’s portal launch and the impact on merchants who were importers of record.

GovExec said Main Street Alliance Executive Director Richard Trent called the refund process complex. “Small business owners should not have to jump through hoops to get back money they never should have had to pay. We need a refund process that is simple, accessible, and fast,” Trent said.

CNBC said many companies passed through costs by raising prices, making refunds a legal vulnerability for the companies that claim them. NPR said some companies ate some of the cost “to avoid spooking shoppers with higher prices” and said tariff refunds go to whoever paid the customs bill.

“It’s unclear how, or if, the refunds might trickle down to store owners who paid tariff surcharges to their suppliers.” Tariffs are complicated – be sure to get expert advice, and check the Customs and Border Protection website for information on IEEPA refunds.