FedEx and UPS delivery vans are seen in Krakow, Poland, February 22, 2022.
Beata Saurzernul Photo | Getty Images
The customs duty refund process has begun, but it could be several months before consumers start receiving the benefits.
U.S. Customs and Border Protection on Monday began a refund process for companies seeking refunds after the Supreme Court ruled that some tariffs are unconstitutional.
The refund procedure only affects levies collected under the International Emergency Economic Powers Act (IEEPA), a specific tariff that the Supreme Court has invalidated. Some tariffs continue to apply, such as those under Sections 232 and 301 of the Trade Expansion Act of 1962.
A customs refund portal called “Consolidated Administration and Processing of Entry” will allow importers of record to submit refund requests. CBP will then process those requests in phases, with the first phase only considering refund requests for entries that CBP has finally processed within the past 80 days.
For shippers UPS and fedexthat could mean a payday for the company and ultimately the customer.
UPS announced this week that it will work on behalf of its customers to request and recover duty refunds from CBP for shipments for which it is the importer of record. In other words, customers do not need to contact UPS.
Still, the company said refunds could take up to three months to reach UPS, and only then could it issue refunds to customers.
“We remain committed to continuing to move shipments and helping our customers fully exercise their rights through this complex process,” UPS said in a statement. “We are closely monitoring legal developments and will share updates as they become available.”
The shipping company said it had only received guidance from CBP on the first phase of duty refunds.
FedEx also told CNBC that it has initiated a claim with CBP for duty refunds.
“Supporting our customers as they navigate regulatory changes remains our top priority,” FedEx said in a statement.
The company said the process was “simple.” If CBP reimburses FedEx, it will in turn reimburse shippers and consumers who paid those fees.
FedEx said it will also generate the necessary reports to secure refunds on behalf of customers.
DHL The company told CNBC it will also begin filing for duty refunds, automatically processing shipments for which it is the importer of record.
“We will continue to closely monitor developments, work with authorities, and communicate transparently as further guidance becomes available,” the company said in a statement.
On Tuesday, President Donald Trump told CNBC’s “Squawk Box” that he would “remember” the companies that did not request tariff refunds.
