About 15% of tariff refund claims filed by U.S. businesses have been rejected since the launch of a government reimbursement portal, according to U.S. Customs and Border Protection filings submitted to the U.S. Court of International Trade.
U.S. Customs and Border Protection received more than 75,000 refund requests as of April 26 since the CAPE portal went live on April 20. CAPE - short for Consolidated Administration and Processing of Entries - is a government system used to process tariff refund claims after the Supreme Court struck down certain emergency tariffs.
More than 47,000 claims covering about 11 million tariff payments were properly filed, CBP official Brandon Lord said in the declaration filed Tuesday.
Errors Driving Rejections
Nick Richards, a partner at law firm Greenspoon Marder who has advised clients seeking tariff refunds, told CBS News that businesses are likely making errors in their submissions. The portal is currently only accepting applications for tariffs finalized by CBP or estimated duties still within the estimation window.
Businesses may only seek refunds for tariffs imposed under the International Emergency Economic Powers Act, which the Supreme Court struck down in February. "There are parameters, and I would imagine some of the submissions are outside of that scope," Richards told CBS News.
Despite the rejection rate, Richards said the rollout has been largely smooth. "I was amazed at the speed with which Customs put up this portal," he said. "They've done an amazing job rolling this out."
Consumers Left Out
CBP court filings show around 330,000 importers paid an estimated $166 billion in duties, of which approximately $127 billion is considered refund-eligible. However, under U.S. trade law, only the importer of record can file a claim. Consumers have no standing at the portal.
FedEx (NYSE: FDX) told Fortune it plans to pass refunds to customers who paid an itemized tariff charge. Costco Wholesale Corp. (NASDAQ: COST) told The New York Times it would use refunds to lower prices, a position that has already drawn class-action interest. Proposed suits have also been filed against United Parcel Service Inc. (NYSE: UPS) and others.
Wall Street Moves In
A secondary market for tariff refund claims has quietly emerged. Hedge funds across London and New York have been buying refund rights from importers at a discount in exchange for upfront cash, Hedge Week reported. Claims that traded at 20 cents on the dollar before the February Supreme Court ruling are now changing hands at up to 60 cents on the dollar as legal visibility has improved.
Political Pressure Clouds The Refund Push
Not all eligible companies are rushing to file. Major corporations, including Apple Inc. (NASDAQ: AAPL) and Amazon Inc. (NASDAQ: AMZN), have reportedly avoided seeking reimbursements to sidestep political backlash. President Trump was direct when asked about it: "If they don't do that, I'll remember them."
Senator Chris Murphy (D-CT.) called the portal "cumbersome," saying small importers were paying roughly $37,000 a month in added tariff costs. "The harm has already been done," he said.