UPS, FedEx and DHL are seeking tariff refunds. Here's what it means for consumers.
Major shippers, including UPS, FedEx and DHL, have filed claims for tariff refunds with U.S. Customs and Border Protection (CBP), which on Monday launched a portal through which businesses can request money back for some of the import duties they had paid under the Trump administration.
The companies also pledged to return money to customers who shouldered added tariff costs tied to President Trump's International Emergency Economic Powers Act, or IEEPA, tariffs. In February, the Supreme Court ruled that the IEEPA tariffs had been illegally imposed.
A UPS spokesperson on Tuesday confirmed that it is filing claims for refunds on qualifying tariffs through CBP's so-called CAPE portal. The shipper also told CBS News that once the federal government approves the claims and issues refunds, it will reimburse customers who paid the levies.
Only the importer of record, or IOR, can request refunds through the CAPE portal, meaning that individual consumers cannot file claims.
"For shipments where UPS was the IOR, we will work to request and retrieve IEEPA tariff refunds from CBP on our customers' behalf," UPS said in a statement on its website. "There is no need for those customers to contact UPS. After we receive the funds from CBP, we have established a process to issue refunds to the payors."
CBP said it will deliver refunds to successful applicants within 60 to 90 days of claim approval.
"UPS cannot issue IEEPA tariff refunds to payors until we receive the funds from CBP," UPS said in guidance on its website.
FedEx, DHL refund plans
FedEx also said it plans to repay customers who bore the cost of the levies.
"Our intent is straightforward: if refunds are issued to FedEx, we will issue refunds for IEEPA tariffs paid to the shippers and consumers who originally bore those charges," the company said on its website.
FedEx is submitting declarations for eligible entries for which it served as a customs broker, and said it will work "expeditiously" to issue refunds to customers once CBP makes FedEx whole.
DHL, which also started submitting claims as soon as the portal opened on Monday, said that as it receives refunds, it "will pass the refund to the party that originally paid the duties."
The shippers did not disclose the total amounts of the refunds they are seeking.
Mr. Trump on Tuesday suggested he could favor firms that decline to seek refunds, after the Supreme Court's ruling striking down the tariffs. He told CNBC that he will "remember" U.S. companies that don't submit CAPE declarations.
He also said it would be "brilliant" if firms didn't ask the federal government for refunds.
Waiting for refunds
Kacie Wright, manager of Houghton Horns, a Keller, Texas-based musical instrument retailer, said she faced added costs from Mr. Trump's tariffs but isn't authorized to submit a claim for refunds. Instead, she has to wait for CBP to return money to shippers who acted as the importers of record on the company's behalf.
"We used services like UPS or DHL, which are the importers of record," she told CBS News. "So they need to get refunds, which they'll then pass on to us."
Wright said she's grateful that shippers have pledged to pass on refunds to customers like herself. Still, she said nothing is guaranteed until the money is in the bank.
"I hope they process the refunds. I hope they get it done," she said.
