BURST
A new web portal operated by the U.S. government allows businesses to reclaim recent tariffs that have been struck down by the U.S. Supreme Court. Canadian companies could see some relief. Here’s how it works.
What is the website and what does it offer?
The site , International Emergency Economic Powers Act (IEEPA) Duty Refunds, is operated by U.S. Customs and Border Protection (CBP).
According to the site, its purpose is “to streamline the submission and processing of valid refund requests for duties imposed under the … IEEPA, as authorized by court order or applicable law. (It) is designed to consolidate refunds of IEEPA duties including interest rather than processing refunds on an entry-by-entry basis.”
Can Canadian businesses apply for refunds?
They can, if they import goods into the U.S. and paid the tariffs. Those requesting refunds must be importers of record or authorized customs brokers with a U.S. customs account and a U.S. bank account.
The Canadian Federation of Independent Businesses has shared guidance for small businesses on applying for refunds.
It noted that, of the firms that faced tariffs, about a quarter served as the “importer of record” and could apply for a rebate because they were legally responsible for shipments entering the U.S. There is no government fee to apply or to protest a decision.
It also clarified that, if a U.S. customer was listed as the importer of record, the Canadian exporter cannot file directly.
“Canadian businesses should contact their U.S. partner as soon as possible to confirm whether a claim will be filed and how any refund would be handled,” it said. “Many exporters assume they can file themselves and only discover later that they cannot, which can result in missed deadlines.”
In addition, some businesses reported glitches, error messages and other problems with the website on its first day of operation this week, though CBP said it was working through those issues.
Other than refunds, what are the positives for Canada?
David Gens, founder and CEO of Canadian financial technology company Merchant Growth , noted that the refunds, where they apply to U.S. firms, offer limited benefit for Canadian businesses.
“Decisions were already made to buy those Canadian goods or not in the past,” he said. “It’s nice that they get a refund. That’s helpful and maybe they have more financial power now to do some more inventory accumulation as a result of getting those refunds. But, at the end of the day, the amount of impact this is going to make for Canadian businesses is not much. It’s really a one-time financial gain for folks that previously imported and that are in the U.S.”
A survey put out by Merchant Growth in February found that, due to the year-long trade war between the two countries, 57 per cent of Canadian small businesses with U.S.-related activity 12 months ago have since scaled it back, while 14 per cent have cut ties with the U.S. altogether.
In the same period, 41 per cent of small businesses said tariffs and trade disruptions had decreased their profit margins. 32 per cent said they spent between $5,000 and $25,000 in additional costs due to tariffs and trade-related fees, and nine per cent reported they spent between $26,000 and $100,000.
Gens also said that Canadian consumers are unlikely to see any impact of refunds, since there is no requirement for companies to pass refunds on to consumers.
“Just because these refunds happened, it’s not really helpful to Canadian exporters or Canadians in general,” he said. “It sounds like a win, but it really isn’t. This refund isn’t doing anything for us.”
What happened to the U.S. tariffs?
On Feb. 20, the U.S. Supreme Court in a 6–3 decision held that the IEEPA does not authorize the U.S. President to impose tariffs, invalidating a sweeping set of “emergency” trade measures Donald Trump had implemented.
He responded at the time by announcing a new set of tariffs through other means.
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