How Canadian businesses can get refunds for U.S. IEEPA tariffs

Eligible importers of record now have a path to reclaim IEEPA tariffs 

From February 4, 2025, to February 24, 2026, many Canadian businesses paid U.S. tariffs under the International Emergency Economic Powers Act (IEEPA) when exporting goods that were not compliant with the Canada–United States–Mexico Agreement (CUSMA) to the United States. These non-CUSMA compliant goods were typically subject to tariffs at a rate of 35%. Sectoral tariffs (including those on steel and aluminum) were not imposed under the IEEPA and remain in effect.

On February 20, 2026, the U.S. Supreme Court struck down the IEEPA tariffs, opening the door for potential refunds. These refunds will go to those listed on the U.S. Customs paperwork as importers of record (IORs) because they are legally responsible for the shipment entering the U.S. 

U.S. Customs and Border Protection (CBP) released guidance on its new Consolidated Administration and Processing of Entries (CAPE) tool, a streamlined portal for obtaining refunds of duties paid under the IEEPA. On April 20, phase 1 of CAPE will be rolled out in the Automated Commercial Environment (ACE) for some standard entries that are unliquidated or are within 80 days of liquidation.

To submit a refund request, IORs and authorized customs brokers must:

• Have an active ACE Secure Data Portal (ACE Portal) account
• Provide banking information to CBP through the ACE Portal to enable refunds
• Submit CAPE Declarations through the ACE Portal

FAQ

What is excluded from phase 1? 

In phase 1, CBP will not accept more complex entries. This includes:

• Entries flagged for reconciliation
• Entries covered by an open protest
• Entries not filed in ACE or without a liquidation status in the system
• Entries subject to antidumping or countervailing duties where liquidation instructions from the U.S. Department of Commerce are still pending
• Entries that have already reached final liquidation (i.e., more than 90 days after liquidation)
• Entries involving Duty Deferral, Temporary Importation under Bond, or Drawback 

Although a court has ordered CBP to issue refunds for these types of entries, technical limitations with the new CAPE system mean they will not be processed during phase 1.

Who can submit a CAPE Declaration?

Only the importer of record listed on the entries, or the authorized customs broker who filed the entries on their behalf, can submit a CAPE Declaration.

How do I submit a CAPE Declaration?

CAPE Declarations must be submitted through the web-based ACE Portal using a comma-separated value (CSV) file. The template will be available in the ACE Portal under the “Upload” button within the CAPE tab. Filers cannot use the Automated Broker Interface (ABI) to submit a CAPE Declaration. 

The CAPE Declaration requires a list of entries for which refunds of IEEPA duties are being requested. CBP has indicated that no information other than the entry number will be required in the CSV file. Each CAPE Declaration can include up to 9,999 entries. However, multiple CAPE Declarations can be submitted if needed.

Once a CAPE Declaration is validated and accepted, ACE will update the relevant entry summary lines by removing the IEEPA tariff provision and associated duties. CBP will then review the entries and proceed with liquidation or reliquidation.

Can I get a refund if I don’t have an ACE Portal account? 

No. To get a refund, bank account information must be provided using an ACE Portal account. In addition, the importer or broker who files the CAPE Declaration must have an ACE Portal account.

How are refunds issued?

In most cases, valid IEEPA duty refunds will be issued within 60 to 90 days after the CAPE Declaration is accepted. However, timelines may be longer if an additional compliance review is required.

All refunds must be paid electronically via Automated Clearing House (ACH) (ACH Bank Information for Electronic Refunds). To receive a refund, CBP must have your bank account information on file. If banking information designated for refunds is not on file with CBP, the refund will not be paid until that information has been provided through the ACE Portal.  

Banking Information: The IOR must provide U.S. bank account information for ACH refunds.

Where can I find CBP information to assist in applying for an ACE Portal and ACH refund account? 

• One-page overview: ACH refund enrollment
• Frequently asked questions: ACE Portal and ACH refunds FAQs
• Training video: Applying for an ACE Portal importer account and enrolling in ACH refunds
• Training guide: ACE Portal importer account application
• Training guide: ACH refund enrollment in the ACE Portal
• Rejected ACH refund information: Replacement refund instructions

What if my U.S. customer was the importer of record?

If a U.S. customer or distributor was listed as the importer of record, the Canadian exporter cannot file directly. The U.S. IOR must file the protest or refund claim. Canadian businesses should contact their U.S. partner as soon as possible to confirm whether a claim will be filed and how any refund would be handled. Many exporters assume they can file themselves and only discover later that they cannot, which can result in missed deadlines.

How much do protests usually cost?

Customs protests are generally low-cost compared to litigation.

There is no government filing fee. Businesses that file directly through ACE incur little to no out-of-pocket cost but must be familiar with the system and protest requirements, as errors can delay or jeopardize a claim.

Most SMEs use a customs broker, who typically charges a modest administrative fee. Costs vary by broker and complexity but are usually small compared to the potential refund.

What if I have many small shipments?

Even small shipments can add up over time, especially for frequent exporters.

Entries can be grouped and bulk data preparation is encouraged for refunds through ACE and the CAPE system. Businesses should not assume smaller entries are not worth pursuing.

How can CFIB help? 

CFIB is actively working to raise awareness of how these U.S. tariff developments are affecting Canadian small and medium-sized businesses. We are sharing real-world impacts with governments in Canada and engaging with key stakeholders, so decision makers understand what Canadian businesses are experiencing.

If this issue is affecting your business, we encourage you to connect with us using our U.S. tariffs contact form. While CFIB has limited ability to intervene directly on the U.S. side, we can sometimes seek clarification and information for our members through our established contacts. These may include Canadian trade officials, embassies, industry groups, and contacts abroad.

Hearing directly from businesses helps strengthen our advocacy and ensures your concerns are reflected in our discussions with government and international partners.