Summary: Canadian importers that paid tariffs under the U.S. International Emergency Economic Powers Act between February 4, 2025, and February 24, 2026, may be eligible to seek refunds following recent court rulings and the launch of the CAPE online claims portal. The process covers an estimated $166 billion in duties paid by roughly 330,000 importers, subject to eligibility and filing requirements.
Are You Eligible for a Tariff Refund?
Canadian importers who paid tariffs under the United States’ International Emergency Economic Powers Act (IEEPA) between February 4, 2025, and February 24, 2026, may now be able to recover those amounts via an online refund mechanism established by the U.S. Customs and Border Protection (CBP).
The refund window is now open. Interest is accruing on the outstanding balance at roughly $22 million per day, which means filing sooner rather than later directly affects how quickly your business sees the refund.
What Does the Recent Supreme Court Ruling Mean for Canadian Importers?
On February 20, 2026, the U.S. Supreme Court struck down the IEEPA tariffs in a 6-3 decision in Learning Resources, Inc. v. Trump. The Court ruled that Congress, not the President, holds the constitutional authority to impose tariffs, and that this power is not delegated under the IEEPA.
The ruling invalidated two categories of tariffs: the “Trafficking” tariffs imposed on Canada, Mexico, and China in connection with illicit fentanyl trafficking enforcement, and the broadened “Reciprocal” tariffs imposed globally on April 2, 2025. The CBP stopped collecting IEEPA duties on February 24, 2026, and the U.S. Court of International Trade subsequently ordered the government to return the funds.
Not every U.S. tariff was struck down. Section 232 tariffs on steel, aluminum, automobiles, copper, lumber, and semiconductors remain in force and are not refundable. The Section 122 global surcharge of 10% applies for up to 150 days from February 24, 2026, unless modified or extended by further action and is not refundable. Only IEEPA duties paid within the applicable eligibility window qualify for refunds.
This ruling led CBP to launch the Consolidated Administration and Processing of Entries (CAPE) portal to process refund claims for eligible entries.
How the Refund System Works
CAPE introduces a structured process for recovering duties on affected imports. However, for companies with cross-border operations, outcomes depend on eligibility, timing, and coordination with U.S.-based partners.
The CAPE portal operates within the Automated Commercial Environment (ACE), which manages import data and filings. It is the designated system for processing IEEPA refund claims.
According to CBP, the system is designed to consolidate refunds of IEEPA duties, including interest, rather than processing them on an entry-by-entry basis.
CBP also does not permit the use of Post Summary Corrections (PSCs) to initiate IEEPA refund claims. Instead, claims must be submitted through CAPE using a CBP-provided CSV template available within the system.
The process applies to eligible goods imported into the United States between February 4, 2025, and February 24, 2026. These goods were generally subject to tariffs of approximately 35%.
Refunds are not automatic. Eligible parties must submit claims through CAPE. According to CBP, accepted claims are typically processed within 60 to 90 days, though additional review may extend the timeline.
Who Can File a Claim?
Only the U.S. Importer of Record (IOR), or an authorized customs broker acting on their behalf, may submit a refund request.
In many cases, Canadian exporters ship goods to U.S. customers who act as the IOR. In such cases, the Canadian business cannot file the claim directly and must work with a U.S. partner to determine whether a claim can be submitted and how any refund may be handled.
To initiate a claim, the IOR or broker must submit a CAPE Declaration. This Declaration includes a list of entries for which refunds of IEEPA duties are requested. Each entry must match the documentation originally filed with CBP.
Each CAPE Declaration can include up to 9,999 customs entries, and multiple Declarations may be submitted. Brokers may include entries across multiple importers of record within a single Declaration.
CAPE Phase 1 and Current Limitations
CBP is implementing CAPE in stages. Phase 1, launched on April 20, covers standard entries that are unliquidated or within 80 days of liquidation.
To participate, importers must have an active ACE Secure Data Portal account and provide banking information to receive refunds.
CBP has listed several categories outside of Phase 1 processing, although refund rights may still apply. These include:
- Entries flagged for reconciliation or filed as Entry Type 09 reconciliation summaries.
- Entries under an active protest.
- Entries not filed in ACE or lacking liquidation status.
- Entries awaiting instructions from the U.S. Department of Commerce.
- Entries more than 90 days past liquidation (outside CBP’s voluntary re-liquidation window).
- Entries involving duty deferral, temporary importation under bond, or drawback.
For these entries, importers should consider interim strategies to preserve their rights until CBP addresses these categories in later phases.
Sector-specific tariffs — such as those on steel, aluminum, automotive products, softwood lumber, or semiconductors — were not imposed under IEEPA and remain in effect. They are not included in the IEEPA refund program.
Refund access also depends on who is listed as the U.S. IOR. A Canadian business may not be able to claim directly if:
- A U.S. customer or distributor was listed as the IOR.
- A U.S. partner filed the customs entry and controls the refund process.
Goods Covered by the Refund Program
The refund process primarily applies to all goods, including those that qualified for the Canada–U.S.–Mexico Agreement (CUSMA) and were imported into the U.S. during the specified period.
These goods were typically subject to a 35% tariff rate under IEEPA. Businesses preparing claims should confirm that all entries fall within the eligibility window and meet program requirements.
Incomplete or inaccurate entries may lead to rejection of individual items or the entire submission.
Steps Canadian importers can take
Canadian businesses that may be affected can take several steps to prepare for the process:
- Confirm the IOR: Identify whether the Canadian entity or a U.S. partner is listed as the IOR.
- Coordinate with U.S. partners: Confirm whether a claim can be filed and how any refund will be handled between parties.
- Review shipment records: Identify eligible entries within the relevant timeframe.
- Prepare complete documentation: Maintain consistency between submitted data and CBP records.
- Consider consolidating entries: Grouping shipments may support more efficient processing.
The Canadian Federation of Independent Business (CFIB) encourages businesses, particularly those with frequent shipments, to use ACE and CAPE tools to organize and submit claims.
Processing Timelines and Requirements
Businesses should review their exposure to IEEPA tariffs and confirm whether affected entries fall within the eligibility window.
As of April 9, 2026, more than 56,000 importers of record had registered to receive electronic refunds, according to CBP, covering approximately 82% of IEEPA entries and about $127 billion in duties.
Once a CAPE Declaration is accepted, CBP reviews the submission and proceeds with liquidation or reliquidation. Refunds are issued to the IOR or to a designated party, as specified in CBP Form 4811.
Accepted declarations cannot be amended. Any additional eligible entries identified later must be submitted through a new declaration.
During this process, CBP applies standard rules to reconcile overpayments and underpayments for each entry.
Entries subject to unresolved protests cannot be processed immediately. Importers should also note that failing to file a protest within 180 days of liquidation may affect their ability to recover duties.
Implications for Canadian Businesses
The introduction of the CAPE system provides a structured path to recover duties paid under IEEPA tariffs. For Canadian importers, this may help improve cash flow and recover costs tied to cross-border trade.
However, the refund process does not guarantee recovery in all cases, and outcomes depend on eligibility and compliance with administrative requirements.
Access to refunds depends on accurate filings and coordination with U.S. partners. The requirement that only the IOR or an authorized customs broker may submit a claim limits Canadian exporters’ ability to act directly.
Given these requirements, businesses should coordinate with brokers and internal teams early and make sure that their documentation aligns with CBP records. In more complex cases, navigating eligibility, preparing submissions, and preserving rights may require specialized support to help manage risk and pursue available refund opportunities.
Final Thoughts: Act Now to Recover IEEPA Tariffs
Importers should be aware that refunds are issued to the IOR through CAPE, which experienced technical challenges at launch.
An Automated Clearing House (ACH) refund enrolment must be in place to receive payment. Phase 1 does not cover entries with drawback or reconciliation flags, or those where a surety paid the duty. With interest accruing at roughly $22 million per day on the outstanding balance, filing sooner may support faster recovery.
Not all tariffs are covered by the refund process. Importers should understand the distinction between Section 122 tariffs and IEEPA tariffs. Section 122 tariffs are temporary measures imposed to address balance-of-payments issues, while IEEPA tariffs are country-specific and enacted under emergency powers.
On February 24, 2026, the U.S. imposed a global Section 122 temporary tariff of 10% in place of the IEEPA tariffs. Importers should also note that Section 232 tariffs, which apply to goods such as steel and aluminum on national security grounds, are nonrefundable and therefore not covered by IEEPA claims.