HIGH POINT — A long-awaited opportunity for tariff relief is beginning to take shape for furniture retailers and other importers, as U.S. Customs and Border Protection (CBP) launches the first phase of its refund process for certain duties collected under the International Emergency Economic Powers Act (IEEPA).
Set for Monday, April 20, the rollout marks a shift from legal rulings to implementation and could unlock billions in potential refunds across industries that have absorbed elevated import costs.
More than 330,000 importers were affected by the now-invalid tariffs, which covered roughly 53 million shipments. The rollout marks an important first step but does not offer a broad-based payout as of yet. Eligibility is limited in this initial phase, refunds require active filing through a new system, and while the potential financial impact could be meaningful, most companies have yet to quantify what they may recover.
See also:
According to guidance from the Home Furnishings Alliance, CBP’s CAPE Phase 1 is limited in scope but represents a critical first step.
At launch, eligibility is restricted to certain unliquidated entries and those within 80 days of liquidation. That means not all importers — or all tariff-impacted shipments — will qualify immediately.
The agency is taking a phased approach as it builds out a new system within its Automated Commercial Environment (ACE), which will allow importers and customs brokers to submit refund claims electronically and receive payments directly.
Claims won’t be automatic; here’s how to file
As outlined by CBP, importers must actively apply for refunds rather than expecting them to be issued automatically.
That process includes registering for the ACE portal, submitting a declaration identifying eligible entries and providing banking information for reimbursement. The system will then validate claims, recalculate duties without the IEEPA tariffs and issue refunds, potentially with interest.
The agency has indicated that processing may take weeks rather than days, with early estimates suggesting payments could take up to 45 days after claims are accepted.
For an industry already navigating margin pressure, supply chain volatility and uneven demand, the opening of the refund process is a notable development, even in its limited initial form.
That potential upside has not gone unnoticed by industry executives.
Speaking on a recent earnings call, Hooker Furnishings CEO Jeremy Hoff highlighted both the opportunity and the uncertainty surrounding it. “In March, the U.S. Court of International Trade directed U.S. Customs and Border Protection to implement a refund process for previously collected duties. We are evaluating the potential recovery of these amounts,” he said.
The company has not disclosed how much it paid in tariffs — a common stance across the industry — but Hoff acknowledged the potential scale. “The amount is material, but we are not disclosing a figure at this time,” he said.
Refunds could be significant, but complexities remain
CBP has described the effort as unprecedented in scale, requiring new technology and phased implementation to handle the volume of claims. That means Phase 1 is just the beginning.
Additional phases are expected to expand eligibility, including for entries that have already been liquidated or require more complex review. Industry groups, including the HFA, are urging retailers to review their eligibility now and ensure systems and documentation are in place.
At the same time, the broader tariff environment remains fluid. Hoff noted that even as companies evaluate potential refunds, new tariffs could emerge under different legal authority, continuing the cycle of disruption.
“The administration appears poised to pivot to new tariffs under different legal authority within the next few months. We continue to monitor developments in this area,” he said.
