UPS Tariff Refund: Importers who paid tariffs under the 2025 International Emergency Economic Powers Act (IEEPA) program are now in line to get some of that money back, and UPS is one of the first major carriers to start moving on it. Following a February 20, 2026 Supreme Court ruling that found the 2025 IEEPA tariffs were imposed without proper legal authority, U.S. Customs and Border Protection opened a formal channel for refund claims, and UPS confirmed it would pursue refunds on behalf of shipments where it served as the importer of record, then pass that money on to affected customers.
This is not a blanket payout that lands in every shipper’s account automatically. Eligibility depends on who legally paid the tariff, whether the entry has already been finalized with customs, and which phase of the refund rollout an entry falls under. For businesses that imported goods themselves rather than through a broker, the process involves registering with CBP’s online systems and filing a formal refund declaration. This guide breaks down exactly who qualifies for a UPS tariff refund, what documents are needed, how long the process takes, and when payments are expected to arrive. We’ll be updating this article monthly as CBP expands eligibility phases and UPS shares new processing timelines.
Why Tariff Refunds Are Happening Now
The IEEPA tariffs at the center of this refund program were tariffs imposed in 2025 on imports from Canada, China, and Mexico, along with a broader set of reciprocal tariffs applied to other trading partners. These tariffs were charged at the border and collected as part of standard customs entries, meaning importers, not the retailers or end consumers who eventually bought the goods, were the ones who technically paid the money to the government.
When the Supreme Court ruled that the executive branch had exceeded its authority in imposing these specific tariffs, it opened the door for the businesses that paid them to seek their money back. CBP responded by building a dedicated refund mechanism called CAPE, short for Consolidated Administration and Processing of Entries, inside its existing Automated Commercial Environment (ACE) portal. CAPE is the system importers now use to file formal refund claims tied to their original customs entries.
For everyday shoppers, this is worth understanding even if you never filed a customs entry yourself. A Joint Economic Committee report released earlier this year found that the average American family had already paid more than $1,700 in higher costs tied to these tariffs since they took effect, largely passed down through retail pricing. The refund process itself, however, only reaches the businesses that were the legal importer of record, not consumers directly.
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Who Is Eligible for a UPS Tariff Refund?
Eligibility comes down to one core question: who was listed as the importer of record (IOR) on the customs entry when the tariff was originally paid?
If UPS was the importer of record on your shipment, meaning UPS itself paid the tariff to customs at the time of import, then UPS is handling the refund claim on your behalf. In this scenario, you do not need to file anything yourself. UPS has said it will retrieve the refund from CBP and then pass the money along to the business or individual that was actually charged for the shipment.
If your own business was the importer of record, meaning you or your customs broker filed the entry and your company paid the tariff directly, then you are treated as the claimant, and you are the one who must file the refund request through CBP’s CAPE system, either on your own or through a licensed customs broker. UPS’s brokerage division offers a paid assistance service for businesses in this category, helping with eligibility checks, data preparation, and filing, but this is optional and separate from the free process UPS runs for shipments where it was the IOR.
Consumers who bought a product at a store or online, and who never appeared on a customs entry as the importer, are generally not eligible to file a claim themselves. Any savings from these refunds would reach them indirectly, if at all, through pricing decisions made by the businesses that did receive a refund.
There is also a timing filter. CBP’s refund program, known as Phase 1, is currently limited to a specific category of entries:
- Unliquidated entries, meaning the customs entry is still open or pending final calculation
- Entries that were liquidated (finalized) within the last 80 days
Entries flagged for reconciliation, where the reconciliation record has not yet been closed, fall under a separate category called Phase 2, which CBP has indicated it will expand into over time. Additional phases beyond that have been mentioned by CBP but have not been given a firm rollout date.
UPS Tariff Refund Key Dates and Highlights
| Item | Detail |
|---|---|
| Ruling that triggered refunds | Supreme Court decision, February 20, 2026 |
| Tariffs affected | 2025 IEEPA tariffs on Canada, China, Mexico, and reciprocal tariff entries |
| Refund system | CAPE (Consolidated Administration and Processing of Entries) inside CBP’s ACE portal |
| Who can be the importer of record | UPS (for UPS-brokered shipments) or the business itself |
| Phase 1 coverage | Unliquidated entries, and entries liquidated within the past 80 days |
| Phase 2 coverage | Entries flagged for reconciliation, not yet finalized |
| Filing method | Self-filed CAPE declaration, a licensed broker, or UPS’s paid CAPE assistance service |
| Refund payment method | Direct deposit via ACH, tied to your ACE portal bank details |
| Estimated processing time | Roughly 60 to 90 days after a claim is approved |
| Entry code to look for | Harmonized Tariff Schedule (HTS) Chapter 99 codes on your customs documents |
How Does the UPS Tariff Refund Process Actually Work?
There are effectively two tracks, depending on who was the importer of record.
Track one covers shipments where UPS itself was the importer of record. This typically applies to certain international shipping arrangements where UPS handled the customs entry on the customer’s behalf. In this track, UPS says it will identify eligible entries, file the necessary paperwork with CBP, and once the refund is received, forward that money to the customer who was originally charged. No customer-side application is required for this track.
Track two covers businesses that were the importer of record on their own shipments. These businesses are treated the same way any commercial importer is treated under CAPE Phase 1. They need an active ACE portal account, they need their importer record, formally called CBP Form 5106, to be current and accurate, and they need to gather the entry numbers for every shipment on which they paid an IEEPA tariff they now want refunded.
How to Apply for a UPS or CBP Tariff Refund
If you fall into the second track and need to file for yourself, the process generally looks like this:
- Confirm your CBP importer record, Form 5106, is up to date, and that it lists an email address you personally control rather than only your broker’s email. You will need that email to verify your identity when setting up account access.
- Create or log into your ACE Secure Data Portal account. If you do not already have one, you can request access directly through CBP’s ACE portal registration page.
- Once you have account access, navigate to the Importer sub-account view inside ACE and locate the ACH refund authorization tab. Add or confirm your bank account details here, since refunds are only paid electronically through ACH, not by check.
- Gather your entry numbers, meaning the customs entry identifiers tied to each shipment where you paid an IEEPA tariff. Your customs documents should show a Harmonized Tariff Schedule Chapter 99 code marking these as tariff-related entries.
- File your CAPE declaration through the ACE portal, either yourself if your business is comfortable handling customs filings, or through a licensed customs broker who can file on your behalf.
- If you worked with UPS as your broker and want help with this step, UPS’s optional CAPE assistance service can support eligibility checks, data preparation, filing, and status monitoring, for a fee.
- Monitor your claim status through the ACE portal after submission, since CBP reviews and approves each claim individually before payment is issued.
Businesses that do not have an existing ACE account and are unsure whether they qualify as an importer of record can start by checking their past customs paperwork for Chapter 99 codes and confirming who is named as the importer on those entries.
Processing Time: How Long Does a UPS Tariff Refund Take?
Once a claim is filed and approved, CBP and UPS have both indicated that payment generally follows within 60 to 90 days. This window covers the time CBP needs to review the claim against the original entry, confirm the tariff was in fact collected under the invalidated IEEPA authority, and process the ACH transfer to the bank account on file.
Claims are not processed in a single mass batch. Since CAPE is being rolled out in phases and CBP reviews entries individually, processing times can vary depending on how complex the entry is, whether documentation is complete on the first submission, and which phase your entry falls under. Entries with missing or outdated importer records, in particular an out-of-date Form 5106, are more likely to face delays while CBP requests corrected information.
Payment Schedule and How Refunds Are Delivered
All refunds under this program are paid electronically through ACH, directly into the bank account linked to your ACE portal’s Importer sub-account. There is currently no option to receive a paper check or a wire transfer outside of ACH for this specific refund program.
For shipments where UPS was the importer of record, UPS collects the refund from CBP first and then issues payment to the original customer separately, following its own internal payout process once CBP funds are received.
For self-filed business claims, the payment timeline follows CBP’s approval and disbursement schedule directly, meaning the 60 to 90 day window begins once your CAPE declaration is approved, not simply once it is submitted.
Official Resources
| Resource | Purpose |
|---|---|
| UPS Tariff Refunds page | Overview of IEEPA tariff refund eligibility and UPS’s role in the process |
| UPS Customs Brokerage Tariff Refunds page | Details on CAPE, phase-based eligibility, and UPS’s optional filing assistance |
| CBP ACE Secure Data Portal | Login and account registration for importers to check status and manage ACH details |
| CBP Form 5106 | Importer record form that must be current before filing a CAPE declaration |
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FAQs
Do I need to apply for a tariff refund if UPS was my shipping carrier?
Not necessarily. If UPS was the importer of record on your shipment, meaning UPS itself paid the tariff to customs, UPS has said it will handle the refund claim and pass the money to you once it is received. You only need to file your own claim if your business, not UPS, was listed as the importer of record.
How do I know if my shipment qualifies under Phase 1?
Check whether the customs entry is still unliquidated, meaning it has not been finalized, or whether it was liquidated within the past 80 days. Entries outside that window, or entries tied to unresolved reconciliation, currently fall outside Phase 1 and may need to wait for a later phase.
What documents do I need before I file a claim?
You will need an active ACE portal account, an up-to-date CBP Form 5106 with a personal email address on file, your bank account information for ACH refunds, and the customs entry numbers for each shipment carrying a Harmonized Tariff Schedule Chapter 99 code.
How long does it take to receive a tariff refund payment?
Most approved claims are paid within 60 to 90 days of approval, based on timelines shared by both CBP and UPS. This can vary depending on documentation accuracy and which refund phase your entry falls under.
Can consumers who bought a taxed product apply for a refund directly?
No. Only the importer of record, the business or entity that legally paid the tariff to customs, can file a claim. Consumers who paid higher retail prices because of these tariffs are not eligible to file directly, since they were never the party charged by CBP.
Is UPS charging a fee to process tariff refunds?
UPS does not charge a fee for shipments where it was already the importer of record, since it is recovering money it originally paid. UPS’s optional CAPE filing assistance service, aimed at businesses that need help preparing and submitting their own claims, is a separate paid service.
What happens if my Form 5106 information is outdated?
An outdated importer record can delay both your ACE account verification and your refund claim itself. It is worth confirming your Form 5106 lists accurate, current information, including an email address you personally control, before starting the application process.
Conclusion
The UPS tariff refund program is a direct result of the Supreme Court’s February 2026 ruling against the 2025 IEEPA tariffs, and it currently benefits importers of record rather than end consumers. If UPS handled your customs entry, the refund process should happen without any action on your part. If your own business was the importer, the path runs through CBP’s ACE portal and its CAPE filing system, with an active account, an updated Form 5106, and your original entry numbers as the core requirements. Processing generally takes 60 to 90 days after approval, paid out through ACH rather than by check. Since CBP is still expanding eligibility phases, it is worth checking back periodically, or watching for updates directly from UPS and CBP, to see whether entries currently excluded from Phase 1 later become eligible.
