Key Takeaways
- U.S. importers may recover International Emergency Economic Powers Act (IEEPA) tariffs through timely refund claims filed in the Automated Commercial Environment (ACE).
- Customs brokers, legal counsel and certified public accountants (CPAs) support tariff refund claims, tax treatment and financial reporting compliance.
- Tariff refunds may affect inventory, cost of goods sold and transfer pricing, requiring careful tax planning and customer refund assessments.
The international trade landscape has long presented challenges for U.S. businesses due to evolving customs requirements, tax compliance obligations, market complexities and shifting trade policies. This uncertainty was highlighted by the recent Supreme Court and U.S. Court of International Trade decisions striking down certain tariffs imposed in 2025 under the International Emergency Economic Powers Act (IEEPA) and Section 122 of the Trade Act of 1974.
Many importers are now asking: Can previously paid tariffs be recovered, and if so, how?
How are Tariffs Usually Administered for Collection and Refunds?
Typically, tariff payments and claims are handled by importers of record or customs brokers, with the potential assistance of customs legal counsel. As certified public accountants (CPAs) and tax advisors, professionals at PKF O’Connor Davies are available to assist throughout this process, including performing reconciliations of tariffs paid, helping ensure proper accounting treatment in your financial records and consulting on transfer pricing for related-party transfers.
While importers should work directly with experienced customs brokers and attorneys, engaging tax and accounting advisors alongside those professionals can help address the broader financial reporting, tax and operational implications of tariff refunds.
Below is an overview of which professionals are typically best positioned to help you throughout the claims process:
Who Can Help Throughout the Claims Process | |
Steps for Importers | Assistance Provided By |
Enrolling in the Customs and Border Protection Automated Commercial Environment (ACE) Secure Portal and Automated Clearing House (ACH) payment system. | The company (importer of record) or customs broker. |
Check all IEEPA-affected entries from February 4, 2025, through February 24, 2026, that include IEEPA-specific provisions. | The company (importer of record) or customs broker. Accountants and tax advisors can also assist from a bookkeeping standpoint. |
Assess liquidation period. | The company (importer of record) or customs broker. |
File refund claims. | The company (importer of record) or customs broker. Customs counsel for protests. |
Engage trade counsel for liquidated entries outside the standard protest window and to assess litigation options before the U.S. Court of International Trade. | Customs counsel. |
Assess tax and accounting implications of anticipated refunds, including period of recognition, inventory and cost of goods sold restatement and potential transfer pricing considerations. | Accountants and tax advisors. |
Review ongoing tariff obligations. | The company (importer of record) or customs broker. |
ACE Accounts
Every importer should have an active Automated Commercial Environment (ACE) account, which enables them to access their entry history. Businesses should use the account to submit refund claims. This account is also used to enroll in the Automated Clearing House (ACH) payments system and maintain banking information as refunds will only be issued electronically. The above-stated process is time sensitive as customs entries may be liquidated by U.S. Customs and deemed final.
Understanding the Broader Implications of Tariff Relief
It is important for companies not to overestimate the full scope of tariff relief. Even after the IEEPA tariffs are fully removed, average effective tariff rates will fall, but not to zero since many imports were already subject to substantial duties. Additionally, many companies have already responded to higher duty costs by restructuring their supply chains and renegotiating contracts and they may have passed on increased tariff costs to customers. These businesses should carefully consider the broader implications of the rulings and whether they may also have refund obligations to their own customers.
How We Can Help
PKF O’Connor Davies can help you navigate the potential complexities in recovering overpaid IEEPA tariffs, including:
- Determining tax treatment of tariff refunds.
- Reviewing financial statements to reconcile duty payments against general ledgers.
- Advising on technical aspects of the refund registration process including ACE portal setup and Consolidated Administration and Processing of Entries (CAPE) declaration filing.
- Assessing any transfer pricing adjustments needed as a result of refunds received.
- Examining tax planning strategies to optimize tax exposure.
- Liaising with your legal counsel to support filing refund claim protests.
Contact Us
We will continue to monitor and keep you informed. If you have questions about tariff refunds, our team can help assess potential impacts and compliance considerations. Contact your PKF O’Connor Davies client service team or:
Evgenia Belyavskaya, EA
Partner
ebelyavski@pkfod.com | 646.449.6350
Leo Parmegiani, CPA, MST
Partner
lparmegiani@pkfod.com | 646.699.2848
Kelly Morrison-Lee, JD
Managing Director
kmorrisonlee@pkfod.com | 240.937.3952