IEEPA Tariff Refunds for Importers of Chinese Goods: What Is Refundable and What Is Not
- Jeff Chang
- Mar 20
- 5 min read
Updated: Mar 20
If you import goods from China, you have probably heard that the Supreme Court struck down IEEPA tariffs and that refunds are coming. That is true. But if you are assuming the process will be straightforward for your entries, there are a few things worth understanding first.
Importers of Chinese goods were among the hardest hit by the IEEPA tariffs. China was the first country targeted, starting February 4, 2025. IEEPA duties on Chinese goods stacked on top of existing tariffs under other programs, pushing combined rates to levels that fundamentally changed the economics of importing from China for many businesses.
Those IEEPA duties are now refundable. But for importers of Chinese goods specifically, the refund process involves complications that importers from most other countries do not face.
Not Everything You Paid Is Coming Back
The IEEPA tariffs were only one layer of what you were paying. Section 301 tariffs on Chinese goods, which range from 7.5% to 100% depending on the product category, remain in effect. So do Section 232 tariffs on steel, aluminum, copper, and their derivatives. The Supreme Court's ruling only addressed the IEEPA tariffs. Everything else stays.
If you have been looking at your total tariff costs and expecting to get most of it back, the refundable amount may be smaller than you think. Separating the IEEPA portion from the rest requires going entry by entry and identifying which HTS Chapter 99 classifications correspond to IEEPA duties versus other programs. For importers with high-volume, multi-product operations, this is not a quick exercise.
Your Entries May Not Qualify for the First Round of Refunds
CBP is building a new system called CAPE to process IEEPA refund claims. But the first phase of CAPE will not handle all entries. Specifically, it will exclude unliquidated entries subject to antidumping or countervailing duty orders.
Many categories of Chinese goods are subject to AD/CVD orders. If your products fall into those categories, some or all of your entries may be pushed to a later phase of CAPE processing, on a timeline that has not been disclosed. This is an issue that disproportionately affects importers of Chinese goods compared to importers from countries where AD/CVD orders are less common.
The Refund Goes to the Importer of Record
CBP issues refunds to the importer of record (IOR) on the entry. If your US distributor or subsidiary is the IOR, the refund goes to that entity, not to the Chinese manufacturer or parent company. If you are a Chinese company listed as the IOR, you need a US bank account set up for electronic refunds through ACE. CBP stopped issuing paper checks in February 2026.
For businesses where the tariff cost was borne by one party but the IOR is a different entity, the question of who is entitled to the refund money is a contractual issue, not a customs issue. If your supply agreements do not address the allocation of tariff refunds, that is something to resolve before the money starts flowing.
CBP Will Be Looking at Your Entries
CBP has stated that the refund process will include a review period to check for "outstanding enforcement issues" and confirm "no other revenue is owed." The agency is also building an audit trail into the refund system.
Chinese imports have historically been a focus of CBP enforcement activity. Submitting a refund claim through CAPE is not just a request for money. It is an invitation for CBP to look at your entries. If there are classification issues, valuation questions, or other compliance concerns on those entries, the refund review process could surface them.
This is not a reason to avoid filing a refund claim. But it is a reason to review your entries carefully before you submit them.
The Bigger Question: Wait or Act?
The government has stated that its position is that importers need to file at the Court of International Trade to receive refunds. More than 2,000 companies have done so. The administrative refund system through CAPE may eventually provide an alternative path, but it is not operational yet, and the rules have not been published.
For importers pursuing an IEEPA tariff refund on Chinese goods, the calculation involves additional variables: AD/CVD complications, multi-layered tariff structures, IOR issues, and potentially heightened scrutiny during the review process. These are not issues that resolve themselves.
If you are trying to figure out what your refund situation looks like, what is actually refundable, and whether you need to take steps now to preserve your rights, those are questions worth discussing with someone who understands both the customs side and the China trade side of the picture.
IEEPA Tariff Refund for Chinese Goods: Frequently Asked Questions
Are Section 301 tariffs on Chinese goods refundable?
No. Section 301 tariffs were imposed under a different legal authority and remain in effect. Only IEEPA tariffs are eligible for refunds.
Will antidumping or countervailing duty orders affect my IEEPA refund?
They may. CBP's refund system will exclude entries subject to AD/CVD orders from its first processing phase. The timeline for later phases has not been disclosed.
Who receives the IEEPA refund?
The importer of record listed on the entry. If your IOR structure involves a US subsidiary or distributor, the refund goes to that entity. Who is ultimately entitled to the money may depend on your contractual arrangements.
Do I need to file a lawsuit?
The government's stated position is that importers need to file at the CIT. Whether the administrative refund system will change that remains to be seen. Importers should consult with qualified legal counsel about their specific circumstances.
About Chang Law Group
Chang Law Group represents importers and businesses engaged in U.S.-Asia trade. Attorney Jeff Chang is admitted to practice before the U.S. Court of International Trade, the U.S. District Court for the District of Massachusetts, and Massachusetts state courts. The firm assists clients with IEEPA tariff refund claims, customs disputes, and cross-border commercial matters.
If you have questions about whether your business may be eligible for an IEEPA tariff refund, contact Chang Law Group for a consultation.
Contact:
Phone: (617) 307-1238
Email: info@jchanglaw.com
WeChat: ChangLawGroupLLC
Chang Law Group LLC: One Marina Park Drive, Suite 1410, Boston, MA 02210
This article is for general informational purposes only and does not constitute legal advice or create an attorney-client relationship. The IEEPA tariff refund process involves rapidly evolving legal and administrative developments, and the information above reflects the state of affairs as of the publication date. It may not reflect subsequent court rulings, regulatory changes, or government actions. Importers should consult with Chang Law Group regarding their specific circumstances before taking any action based on this information.
