FedEx, UPS, and DHL Are Filing for Tariff Refunds. Here Is What Customers Can Expect.

FedEx, UPS, and DHL have all begun filing claims through CBP's CAPE refund portal and have pledged to pass the money back to the customers who originally paid the tariffs. The portal opened April 20, and over 55,000 parties submitted claims covering more than 4 million imports on its first day.

What Each Carrier Has Committed To

All three carriers have made public commitments to refund customers, though the precise language and process differ slightly.

FedEx is submitting CAPE declarations for all Phase 1 eligible entries for which it served as customs broker. The company says it will generate the reports needed to identify eligible shipments and issue refunds to shippers and consumers once CBP releases the funds. Customers do not need to contact FedEx or take any action. Full details are on the FedEx tariff guidance page.

UPS confirmed it is filing claims for qualifying tariffs through the CAPE portal for all shipments where it acted as importer of record. The company says it has established a process to issue refunds to payors after receiving the funds from CBP. No customer action is required.

DHL began submitting claims automatically on the day the portal opened for any shipments where it was the importer of record, and says it will pass refunds to the party that originally paid the duties.

None of the carriers disclosed the total dollar amounts of the refunds they are seeking.

How Long Customers Will Wait

The timeline has multiple steps. Once a CAPE Declaration is submitted and accepted, CBP estimates it will take 60 to 90 days to issue the refund to the carrier, barring any compliance issues. The carrier then distributes the money to the customer. UPS has cautioned that the total timeline from CBP to the end customer could stretch to three months or longer.

For small businesses that bore significant tariff costs while waiting for clarity, that timeline is a real cash flow concern. Kacie Wright, manager of a Texas-based musical instrument retailer, said her company used UPS and DHL as importers of record and must wait for the carriers to receive and distribute their refunds before seeing any money. “I hope they process the refunds. I hope they get it done,” she said, adding that nothing is guaranteed until the money is in the bank.

What Is Not Being Refunded

Two important limits apply. First, only IEEPA tariffs are eligible for refunds. Other tariff regimes, including Section 232 on aluminum and steel and Section 301 on Chinese goods, remain in effect and are not part of the refund process. Customers who paid tariffs under those frameworks will not see that money returned.

Second, administrative and brokerage fees charged by carriers at the time of delivery are a separate issue. UPS has stated those fees were “legal and valid at the time of the charge” and will not be refunded. FedEx and DHL have not addressed administrative fees directly in their public statements. At least 17 lawsuits have been filed by consumers and businesses seeking reimbursement for those additional charges, with 11 of them against FedEx alone.

The Political Wrinkle

The refund process is unfolding under political pressure from the White House. President Trump told CNBC he would “remember” US companies that do not submit CAPE declarations, suggesting he views the refund claims unfavorably. He also called it “brilliant” if firms chose not to seek refunds from the government.

The carriers have proceeded regardless. Phase 1 of CAPE covers approximately 63% of the 53 million IEEPA-affected import entries. The remaining 37% requires later phases of CAPE to process, and CBP has not announced firm dates for those rollouts.

Alexa Alix

Meet Alexa, a seasoned content writer with a flair for transforming intricate concepts into engaging narratives across an array of industries. With her passions extending to nature and literature, Alex is adept at weaving unique stories that resonate. She's always poised to collaborate and conjure compelling content that truly speaks to audiences.

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