McCormick just got a $28 million tariff refund from CBP. They're not the only ones — U.S. Customs and Border Protection recently expanded their refund portal, and importers across industries are discovering they overpaid duties.
If you import products into the United States, you may be owed money. Here's how to find out and claim it.
What's Happening with Tariff Refunds
CBP has been processing refunds for duties that were overpaid due to:
| Refund Category | What It Covers |
|---|---|
| Section 301 exclusions | Products that qualified for China tariff exemptions |
| Reconciliation entries | Final duty calculations that came in lower than estimated |
| Classification corrections | Products that were mis-classified at higher duty rates |
| Valuation adjustments | Duties paid on inflated declared values |
| FTA utilization | Free trade agreement benefits not properly applied |
The recent portal expansion now covers entries awaiting reconciliation — a category that affects many importers who estimated duties at entry and never reconciled.
Who's Likely Owed Money
| If You... | Refund Likelihood |
|---|---|
| Import from China | High — Section 301 exclusions were complex |
| Use estimated entry values | High — reconciliation often reveals overpayment |
| Have high-volume imports | High — more entries = more potential errors |
| Changed HTS classifications | Medium — may have overpaid before correction |
| Qualify for USMCA/other FTAs | Medium — benefits often under-utilized |
| Import commodity products | Lower — simpler classification, less variation |
The more complex your import program, the more likely you've overpaid somewhere.
How to Check If You're Owed a Refund
Step 1: Gather Your Import Data
You'll need:
- Entry summaries (CBP Form 7501) for the refund period
- Commercial invoices
- HTS classification history
- Broker records of duties paid
- Any exclusion requests you filed
If you work with a customs broker, they should have this data. Request a summary of duties paid by entry number for the past 3 years.
Step 2: Identify Refund Opportunities
| Opportunity | How to Check |
|---|---|
| Section 301 exclusions | Compare your HTS codes to exclusion lists |
| Reconciliation gaps | Look for entries flagged "pending reconciliation" |
| Classification errors | Review HTS codes vs. actual product specs |
| Valuation issues | Compare declared values to actual transaction values |
| FTA underutilization | Check if products qualified for preferential rates |
This analysis is technical. If you don't have in-house expertise, a licensed customs broker or trade compliance consultant can audit your entries.
Step 3: Use the CBP Portal
CBP's refund portal allows you to:
- Check status of pending refunds
- Submit claims for eligible entries
- Track refund processing
Access requires an ACE (Automated Commercial Environment) account. If you don't have one, your customs broker can submit on your behalf.
The Refund Process
| Step | Timeline | What Happens |
|---|---|---|
| 1. Identify eligible entries | 1-4 weeks | Audit your import records |
| 2. Prepare documentation | 1-2 weeks | Gather supporting evidence |
| 3. Submit refund claim | Same day | File via ACE portal |
| 4. CBP review | 2-6 months | Agency processes claim |
| 5. Refund issued | After approval | Direct deposit or check |
The timeline varies significantly based on claim complexity and CBP workload. Simple claims can process in weeks; complex ones take months.
Common Refund Scenarios
Scenario 1: Section 301 Exclusions
You imported products from China that later qualified for tariff exclusions. You paid 25% duties at entry, but an exclusion was granted retroactively.
Refund potential: Full 25% duty on qualifying entries during exclusion period.
Scenario 2: HTS Misclassification
Your product was classified under an HTS code with 8% duty, but it actually qualified for a code with 3% duty. You've been overpaying for years.
Refund potential: 5% difference on all affected entries within the statute of limitations (typically 3 years).
Scenario 3: USMCA Underutilization
You import components from Mexico that qualify for duty-free treatment under USMCA, but your entries didn't claim the preferential rate.
Refund potential: Full duty amount on qualifying entries.
Scenario 4: Reconciliation Discrepancies
You imported products using estimated values at entry. Final reconciliation shows you overpaid based on actual transaction prices.
Refund potential: Difference between estimated and actual duty amounts.
What You Need to Document
| Document | Why It's Needed |
|---|---|
| Entry summaries | Proves what you paid |
| Commercial invoices | Supports valuation claims |
| Product specifications | Supports classification claims |
| Country of origin certificates | Supports FTA claims |
| Exclusion grant letters | Proves exclusion eligibility |
| Broker payment records | Confirms actual duty payments |
Keep meticulous records. CBP will require documentation to process refunds.
Working with Your Customs Broker
Your customs broker should be:
| Action | When |
|---|---|
| Proactively identifying refund opportunities | Ongoing |
| Alerting you to exclusion grants | As they're issued |
| Running reconciliation | Quarterly or as entries close |
| Flagging classification issues | At entry |
| Filing refund claims on your behalf | When opportunities arise |
If your broker isn't doing this, you're missing money. Ask them directly: "Have you audited my entries for refund opportunities in the past 12 months?"
Red Flags: When You're Likely Leaving Money on the Table
| Red Flag | What It Means |
|---|---|
| Never received a duty refund | Either perfect compliance (rare) or missed opportunities |
| Broker doesn't discuss tariff changes | Not proactively managing your program |
| Same HTS codes for years | Classifications may be outdated |
| High China import volume 2018-2024 | Prime Section 301 refund candidate |
| FTA-eligible products not claiming benefits | Paying duties you don't owe |
The Bottom Line
Tariff refunds aren't automatic — you have to claim them. CBP won't proactively send you a check for overpaid duties. The money sits there until you file a claim or the statute of limitations expires.
If you import products and haven't audited your entries recently, you're likely owed money. McCormick got $28 million. Your number may be smaller, but on thin margins, every dollar matters.
Start with your customs broker. Ask for a refund audit. If they can't or won't do it, find one who will.
If you're looking for a fulfillment partner that coordinates with customs brokers on import programs, contact us. We work with importers who need warehouse receiving integrated with customs clearance.
