The Tariff Refund Process has been Announced, and Why Small Businesses Likely aren't Eligible

A key part of the tariff refund eligiblity is whether or not businesses paid the customs and dities themselves or were connected to a broker, limiting those who can make claims for refunds.

Update: The United Parcel Service (UPS), Federal Express (FedEx), and DHL Express have stated that they will be working to request refunds for all shipments that fall within CAPE phase 1 which they were the importer of record. Once refunds start coming in, these shippers plan on passing along these refunds to clients. It is expected to take up to 90 days for the importers to receive these refunds.

There has been a lot of buzz lately about a new federal portal for tariff refunds announced this week. If you are a small business owner, you may be wondering: Can my business get money back?

The answer for most small businesses is: most likely not.

That does not mean the portal is fake or that refunds are not happening. They are, but this is not a broad program for every business that paid more because tariffs pushed prices up. It is a much narrower process for businesses that were directly involved in importing goods and paying certain tariffs to the U.S. government.

That distinction is important, because a lot of small business owners may hear “tariff refund” and assume, “We paid more for inventory, so we should be able to claim something.” In most cases, that is not how this works.

The Short Version

Here is the easiest way to think about it:

If your business bought goods from a U.S. supplier, wholesaler, distributor, retailer, or another business that had already imported them, you probably cannot file a claim through this portal.

If your business directly imported goods into the United States under your company’s name, then you might be able to claim a refund.

So the real question is not, “Did tariffs affect my costs?”

The real question is: Was your business the one that officially imported the goods and paid the qualifying tariff?

For most small businesses, the answer will be no.

Why Most Businesses will Not Qualify

I think at this point we can say most, if not all businesses were hurt by tariffs indirectly.

For example, maybe you run a retail store, a machine shop, a manufacturing company, or an e-commerce business. You bought products or materials from a supplier, and your supplier raised prices because tariffs made their costs go up.

That means your business felt the impact of tariffs. But it does not necessarily mean your business has a refund claim.

The government is not offering refunds to everyone who ended up paying more somewhere along the chain. The refund process is mainly for the business that was legally responsible for the customs entry when the goods came into the country.

That is why many small businesses will not qualify, even if tariffs clearly increased their costs.

The Key Term: "Importer of Record"

This is one of the most important terms in the whole conversation, so let’s make it simple.

The importer of record is usually the business officially listed on the customs paperwork when goods enter the United States. That is the party responsible for dealing with Customs and Border Protection, often called CBP, and for paying the duties tied to that import.

If that was your business, you may have a possible claim.

If that was your supplier, freight company, foreign seller, or another party, then your business probably does not.

You do not have to be the person who personally clicked “pay” on a government website.

Many importers use customs brokers to handle filings and payments for them. That alone does not disqualify you. What matters is whether the import was filed under your company’s name. So a better rule of thumb is this:

If the customs entry belonged to your company, you may have a path. If it belonged to someone else, you probably do not.

This is not a refund for every kind of tariff

Another point that can be confusing: this new refund process does not apply to every tariff that has ever affected a business.

It is tied to a specific group of tariffs that were later found to be invalid, the IEEPA tariffs (International Emergency Economic Powers Act fo 2025). In other words, this is not a general “tariff rebate” for all businesses for all tariffs.

That means even some businesses that imported goods directly may still find that their situation does not qualify under this particular process.

So even if your business imported goods itself, the next question is whether the duties you paid are the type that the portal is actually set up to refund.

Simple Examples

Example 1: Probably not eligible

You buy your inventory from a U.S. distributor in California. That distributor imported the goods from overseas and built the tariff cost into the price they charged you.

In that case, your business paid more, but your business probably did not pay the tariff directly as the importer. You likely do not have a direct refund claim through the portal.

Example 2: Maybe eligible

Your company buys goods from a factory overseas and imports those goods into the United States under your own business name. Your customs broker handled the paperwork, and the import records show your company as the importer.

In that case, your business may have a valid reason to look into the refund process.

Those two examples sound similar on the surface, because both businesses were affected by tariffs. But only one of them may actually be in a position to file a claim.

If you might qualify, move carefully

If your business did import goods directly under its own name, then the next step is to gather the right records and confirm whether your entries fit the current refund process.

That usually means looking at things like:

·         customs entry paperwork

·         broker statements

·         dates of import

·         liquidation status

·         the type of duty paid

·         refund setup details in the customs system

This is where things can get more technical, and where many businesses will want help from a customs broker or trade attorney rather than trying to figure it out from headlines alone.

The good news is that if your company really was the importer and paid the qualifying duties, there may be a path forward.

The bad news is that it is not as simple as filling out a basic rebate form.

Conclusion

Yes, the new tariff refund portal is real, but it does not mean every small business that paid more because of tariffs can now get a refund.

For most businesses, the deciding factor is simple:

Were you the business that officially imported the goods and paid the qualifying tariff? If not, you probably do not have a direct claim. If yes, you may have a possible path, but it will likely require records, review, and help from someone who works with customs filings.

So if you are a small business owner asking, “Can I claim this refund?” the honest answer is:

Most likely no, unless your business was the actual importer.

That is the place to start before you spend time, energy, or money chasing the wrong opportunity.

Disclaimer: This article is for general information only and is not legal advice. Businesses with possible claims should speak with a licensed customs broker or trade attorney.