Recent developments regarding tariffs collected under the International Emergency Economic Powers Act (IEEPA) have raised important questions for home furnishings retailers, particularly those who purchased goods from importers that passed the tariff costs along as invoice “tariff fees.” While the legal and administrative process is still evolving, there are several key updates retailers should understand now.
Below is a summary of the latest information and what it may mean for your business.
Court Ruling Could Lead to Importer Tariff Refunds
A recent decision by the U.S. Court of International Trade (CIT) may lead to refunds for certain tariffs previously collected under IEEPA authority. The ruling focuses on how U.S. Customs and Border Protection (CBP) handles liquidation of import entries, the final accounting process where duties and tariffs are officially assessed.
If CBP proceeds with liquidation without applying IEEPA tariff rates, many entries could be finalized without those tariffs included. In those cases, refunds may not be necessary because the tariffs would never be officially assessed during liquidation.
This development could affect many entries, since CBP typically liquidates imports 10 months or more after entry, potentially covering a lengthy period of shipments.
In simple terms, if the court’s decision stands and CBP does not include the IEEPA tariffs during the final review of import entries, businesses may avoid paying those tariffs altogether—or may receive refunds if they were already paid.
Refund Timeline Still Developing
Although the court ordered CBP to begin processing refunds for IEEPA tariffs that were collected, the agency recently informed the court that it cannot immediately comply with the order.
CBP cited workforce and technology limitations but indicated it expects to update its systems and begin processing refunds as early as April.
The agency also noted that the process should require minimal submission from importers, which could simplify the administrative burden once the system is operational.
Refunds Will Be Paid Through the ACE Portal
Any official refund process will involve the Importer of Record (IOR), the party that legally filed the import entry and paid the tariffs to CBP.
Refunds will be issued through the Automated Commercial Environment (ACE) Portal, CBP’s electronic system used by importers to manage customs transactions.
Retailers should be aware of an important detail:
CBP reported that only about 20,000 of the more than 330,000 U.S. importers currently have an ACE portal account set up. If an importer of record has not created an ACE account, refunds may not be processed until that account is established.
For guidance on creating or accessing an ACE account, visit:
What About Retailers Who Paid “Tariff Fees” to Vendors?
A common question we’re hearing from retailers is:
If an importer receives a refund of the tariffs they paid—and they previously charged retailers a “tariff fee” on invoices—do retailers have any recourse to recover those funds?
At this time, the formal refund process applies only to the importer of record, not to downstream buyers.
In other words, any official or administrative refund from CBP will be issued directly to the importer that paid the tariff, not to wholesalers, retailers, or other buyers further down the supply chain.
However, retailers still have an important option.
Start the conversation with your vendors
Many retailers were charged tariff-related surcharges when the tariffs were initially imposed. If importers ultimately receive refunds, it may open the door for discussions about whether those costs should be reconciled.
While there is no court-mandated mechanism requiring importers to pass refunds downstream, transparent conversations with suppliers may help ensure fair outcomes across the supply chain.
What Retailers Should Do Now
While the refund process continues to take shape, retailers can take a few proactive steps:
What Retailers Should Do Now
While the refund process continues to take shape, retailers can take a few proactive steps.
For Members Who Directly Import (Importer of Record):
- Review past import entries.
Identify shipments that may have been subject to IEEPA tariffs, and confirm the entry dates and liquidation status. - Work with your customs broker.
Ask whether any entries are still unliquidated and whether refunds, protests, or post-entry corrections may be possible if tariffs were applied. - Monitor CBP guidance.
Implementation timelines and refund procedures may evolve as CBP updates its systems and clarifies how the ruling will be applied.
For Retailers Who Paid Tariff Surcharges to Vendors:
- Review invoices for tariff-related charges.
Identify where vendors passed through tariff fees or added tariff surcharges. - Communicate with suppliers.
Ask whether they were the importer of record and whether they expect to receive tariff refunds tied to your purchases. - Discuss how refunds may be handled.
If vendors receive refunds for tariffs that were passed through to you, ask how those funds will be credited or reconciled.
For All Retailers:
4. Stay connected with HFA advocacy updates.
We will continue to track developments and provide guidance for members as more information becomes available.
Tariffs have had a significant impact on costs throughout the home furnishings supply chain. The potential refund of previously collected tariffs could provide meaningful financial relief to importers and possibly influence pricing discussions across wholesale and retail channels.
HFA will continue to monitor developments at CBP and the Court of International Trade to ensure retailers understand how policy decisions affect their businesses.
As new details emerge, we’ll share updates with members through our advocacy channels.
