FedEx and UPS delivery vans seen in Krakow, Poland, February 22, 2022.
Beata Zawrzel | Nuphoto | Getty Images
The rate refund process has begun, but it could be months before consumers begin to reap those rewards.
Following the Supreme Court’s ruling that certain tariffs were unconstitutional, U.S. Customs and Border Protection on Monday opened a refund process allowing businesses to begin seeking refunds.
The refund process only affects levies collected under the International Emergency Economic Powers Act, or IEEPA, which were the specific rates struck down by the Supreme Court. Some tariffs, such as those in Section 232 of the Trade Expansion Act of 1962 or those in Section 301, remain in effect.
The customs duty refund portal, called Consolidated Administration and Processing of Entries, will allow official importers to submit refund requests. CBP will then process these requests in stages, and the first phase will only cover refund requests for registrations finalized by CBP within the last 80 days.
For shippers UPS And FedExthis could mean a win for businesses and, ultimately, for customers.
UPS said this week that it will work to request and recover customs duty refunds from CBP on behalf of customers for all shipments for which the company was the importer of record, meaning customers do not need to contact UPS.
Still, the company noted that refunds could take up to three months to be delivered to UPS, which can then only issue refunds to customers.
“We remain focused on keeping shipments moving and ensuring our customers can fully exercise their rights throughout 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 has only received guidance from CBP regarding the first phase of duty refunds.
FedEx also told CNBC that it has begun filing requests with CBP for fare refunds.
“Helping our customers navigate regulatory changes remains our top priority,” FedEx said in a statement.
The company said its process is “simple”: If CBP issues refunds to FedEx, it will in turn reimburse the shippers and consumers who paid those fees.
FedEx said it will also generate the necessary reports to ensure refunds on behalf of its customers.
DHL told CNBC that it also began requesting customs duty refunds, automatically initiating the process for all shipments for which it was the importer of record.
“We will continue to monitor developments closely, engage with authorities and communicate transparently as new guidance becomes available,” the company said in a statement.
On Tuesday, President Donald Trump told CNBC’s “Squawk Box” that he would “remember” companies that failed to request tariff refunds.