UPS, FedEx, DHL Seek Tariff Refunds: Impact on Consumers Explained
U.S. Customs and Border Protection opened a portal on Monday for businesses to seek refunds of certain import duties. Major shippers quickly filed claims after a February Supreme Court decision struck down tariffs imposed under IEEPA.
Shippers submit claims
UPS, FedEx and DHL began submitting refund requests through CBP’s new CAPE portal. Each company said it will return funds to customers who originally bore the IEEPA levies.
UPS confirmed its filings on Tuesday and said customers need not take action. The firm plans to request refunds for shipments where it acted as the importer of record.
How the refund process works
Only the importer of record can file claims through the CAPE portal. That restriction prevents individual consumers from applying directly.
CBP expects to deliver refunds within 60 to 90 days after a claim is approved. Shippers say they will rebate customers after they receive federal payments.
Company specifics
FedEx is submitting declarations for entries where it served as customs broker. The company pledged to issue refunds promptly once CBP reimburses it.
DHL said it began filings as soon as the portal opened. DHL added that it will pass refunds to the parties that originally paid the duties.
Consumer effects
Smaller importers must wait for shippers to recover funds. Retailers that used carriers as importer of record cannot file on their own.
Kacie Wright, manager of Houghton Horns in Keller, Texas, said her company relied on UPS and DHL as the IOR. She told Filmogaz.com she hopes the carriers process payments and return money to customers.
Political reaction
After the court ruling, former President Trump said he would remember companies that opted not to seek refunds. He told CNBC such firms might earn favor for declining CAPE declarations.
Outstanding questions
Shippers did not disclose the total sums they are claiming. The timing of payments depends on CBP approvals and the receipt of federal funds.
The situation will determine final costs for many businesses and consumers. UPS, FedEx and DHL’s actions will shape the practical impact on end buyers and sellers.
