Can My Startup Get Back the Tariffs I Paid Now That the Supreme Court Struck Them Down?

For the past year, your startup has been paying higher prices every time you imported products or components.

The additional tariff costs reduced your margins, increased manufacturing expenses, and forced you to make difficult budgeting decisions.

Now the legal landscape has changed.

The US Supreme Court has ruled that the International Emergency Economic Powers Act (IEEPA) does not authorize the President to impose certain tariffs. As a result, many businesses are asking the same question: Can we recover the money we already paid?

The answer may be yes, but refunds are not automatic. Businesses must follow a specific claims process, meet filing requirements, and pay close attention to important timing rules. Waiting too long could mean losing the opportunity to recover substantial amounts of money.

What Did the Supreme Court Decide?

On February 20, 2026, the US Supreme Court ruled that the IEEPA does not authorize the President to impose tariffs. The decision invalidated both the Reciprocal and Trafficking/Immigration tariffs that many importers had been paying.

The financial impact is significant.

Penn Wharton Budget Model estimated collections from these tariffs at approximately $175 billion to $179 billion, highlighting how much money businesses may now seek to recover.

The Refund Does Not Happen Automatically

Many businesses assume the government will automatically issue refunds following the Supreme Court’s decision.

That is not how the process works.

US Customs and Border Protection (CBP) created a system known as CAPE (Consolidated Administration and Processing of Entries) within the ACE portal to process refund requests. Businesses must submit the required CAPE Declaration before a refund can be considered.

If no claim is submitted, the duties generally remain with the government.

Who Can File the Refund Request?

Not every business involved in an import transaction can submit the claim. The CAPE Declaration generally must be filed by:

• The Importer of Record (IOR), or
• The licensed customs broker who originally filed the import entry.

Many startups use customs brokers or freight forwarders without paying close attention to who was officially listed as the Importer of Record.

Before beginning the refund process, confirm exactly who appears on the original import documentation.

Timing May Determine Whether You Receive a Refund

One of the most important parts of the refund process is timing. CBP introduced the CAPE system in multiple phases.

Phase 1 covers a limited set: certain unliquidated entries and entries liquidated within 80 days of submission. Once an entry liquidates (becomes final), your window can close. 

Phases 2 and 3 expand the scope, but the timing rules still bite.

Waiting too long may create problems because import entries eventually become final through the liquidation process.

Once that happens, recovering duties may become much more difficult or no longer be possible.

Understanding which phase applies to your entries and acting before important deadlines expire can make a significant difference.

Refunds Are Paid Electronically

Once a claim is approved, refunds are generally issued through ACH payments.

Businesses should ensure that their banking information in the ACE portal is accurate before filing a claim.

Approved refunds are generally expected within approximately 60 to 90 days after acceptance and may include statutory interest, although ongoing litigation could still affect the ultimate scope or timing of certain refunds.

Organizing Your Records Can Save Time

Many companies imported goods over several months without tracking exactly which shipments included the affected tariffs.

Before beginning the refund process, gather information such as import entry numbers, tariff payments, import dates, customs broker records, and importer of record information.

Having this documentation available makes it much easier to determine which entries qualify and reduces delays when preparing the CAPE Declaration.

Common Founder Mistakes

• Assuming the refund is automatic: The Supreme Court’s decision does not automatically trigger a payment. A CAPE Declaration generally must be filed before CBP can process a refund.
• Waiting too long to review liquidation dates: Refund eligibility depends heavily on liquidation timing. Delays may result in entries becoming final before a claim is submitted.
• Not confirming who the Importer of Record is: Only the Importer of Record or the original customs broker generally has authority to submit the CAPE Declaration.
• Failing to organize import records before starting the claim: Missing entry information, broker records, or tariff documentation can slow the refund process and create unnecessary complications.

10-Minute Tariff Refund Self Check

• Do I know how much my business paid under the affected IEEPA tariffs?
• Have I identified the import entries involved?
• Do I know who was listed as the Importer of Record?
• Have I spoken with my customs broker about the CAPE filing?
• Is my banking information current in the ACE portal?
• Have I checked whether my entries qualify under the current CAPE phases?

If you cannot answer yes to all of these, you are not ready to file for your tariff refund yet.

Bottom Line

The Supreme Court’s decision has created a valuable opportunity for many importers to recover tariff payments made under the invalidated IEEPA tariffs. However, obtaining a refund requires action. Businesses should determine which entries qualify, confirm who has authority to file the claim, understand the applicable timing rules, and complete the CAPE process before important deadlines pass.

Unsure Whether Your Startup Qualifies for an IEEPA Tariff Refund?

Schedule a free 30-minute call with our team to discuss your questions and next steps.

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