UPS and FedEx Start Filing for Tariff Refunds

• The refund portal only covers tariffs collected under IEEPA that were ruled unconstitutional; other tariffs under Section 232 and Section 301 remain in place
• U.S. Customs and Border Protection will process refund requests in phases, with the first phase covering only entries finalized within the last 80 days
• UPS estimates it could take up to three months to receive refunds from CBP before issuing them to customers, who do not need to contact the company directly

Summary: UPS and FedEx Start Filing for Tariff Refunds

Key Developments:

UPS and FedEx have begun filing requests for tariff refunds through the U.S. Customs and Border Protection (CBP) portal following a Supreme Court ruling in February that declared certain tariffs unconstitutional.

Scope of Refunds:

The refunds only apply to tariffs collected under the International Emergency Economic Powers Act (IEEPA), which were specifically invalidated by the Supreme Court. Tariffs under Section 232 of the Trade Expansion Act of 1962 and Section 301 remain in place.

Process Details:

CBP opened the Consolidated Administration and Processing of Entries portal on Monday, allowing importers of record to submit refund requests. The process will be phased, with the first phase covering only entries finalized within the last 80 days.

Company Actions:

• UPS: Will request refunds on behalf of customers for shipments where it was the importer of record. Customers do not need to contact UPS directly. Refunds could take up to three months to reach UPS before being passed to customers.
• FedEx: Has begun filing claims with CBP and will issue refunds to shippers and consumers once received. The company will generate necessary reports on behalf of customers.

Market Implications:

The refund timeline of several months means businesses and consumers who paid initial tariff charges will face delays before receiving compensation. President Trump stated he would "remember" companies that fail to request tariff refunds, adding political pressure to the process.

Both shipping giants are monitoring legal developments and prioritizing customer support through this complex regulatory situation.