Tariffs, Duties & Refunds: The Importer FAQ

This page answers the questions U.S. importers ask most about tariffs, duties and getting money back from customs: who pays, how duty is calculated, how IEEPA refunds and CAPE work, how duty drawback works, and which deadlines you can't miss. Every answer leads with the short version, then the detail, with a link to the source.

It's current as of October 2026, and we update it when the rules move. Where a question has its own deep-dive on Trade Talk, we link to it.

What is the difference between a tariff and a duty?

In everyday use, nothing: both mean the tax charged on imported goods. Strictly, a "tariff" is the schedule or policy that sets the rate, and a "duty" is the money you actually pay CBP on a specific entry. U.S. rates live in the Harmonized Tariff Schedule of the United States, or HTSUS (USITC).

Who pays tariffs, the importer or the exporter?

The U.S. importer of record pays, not the foreign exporter. Under CBP regulations, liability for duties is a personal debt of the importer of record (eCFR, 19 CFR 141.1). Who ends up bearing the cost is a commercial question: importers can pass it on in prices or negotiate some of it back from suppliers, but CBP collects from the importer.

Which tariffs apply to my imports right now?

Most entries carry a "stack": the normal (MFN) duty rate from the HTSUS, plus any special duties that apply to the product or country. As of October 2026 the main layers are Section 301 duties (on China, and since July 24, 2026, country-level Section 301 duties on roughly 60 countries that replaced the Section 122 surcharge) and Section 232 duties on metals and certain other goods (Z2Data). IEEPA tariffs are no longer collected after the Supreme Court held in Learning Resources (Feb. 20, 2026) that IEEPA did not authorize them. We map each authority in Tariff Authorities, Explained.

How do I find my HTS code?

Start in the official HTSUS search tool (USITC), work down from the chapter to the 10-digit statistical line that describes your product, and then check how CBP has classified similar goods in its rulings database (CBP CROSS). The importer is legally responsible for the code it declares, so if the answer is genuinely unclear, you can request a binding ruling from CBP. Our step-by-step guide: How to Find the Right HTS Code.

What is de minimis and does it still exist?

De minimis was the rule that let shipments worth $800 or less enter the U.S. duty-free, and as of October 2026 it is suspended. The suspension took effect for all countries on Aug. 29, 2025 (KPMG), and CBP's June 24, 2026 interim final rules made it indefinite for every mode, including international mail (Federal Register). Separately, the One Big Beautiful Bill Act ends de minimis by statute on July 1, 2027 (Thompson Hine).

How is import duty calculated?

Duty is usually the customs value of the goods multiplied by the duty rate for their HTS code, added up across every layer in the stack. Customs value is normally the transaction value, meaning the price actually paid or payable, with certain adjustments (Cornell LII, 19 U.S.C. § 1401a). Fees like MPF and HMF are then added on top. Worked examples are in How to Calculate Import Duty.

What is MPF?

The Merchandise Processing Fee is CBP's charge for processing an entry, separate from duty. On formal entries it is 0.3464% of value, with a minimum of $34.58 and a maximum of $670.86 per entry for fiscal 2027, effective Oct. 1, 2026 (Federal Register). Ocean shipments also pay the Harbor Maintenance Fee of 0.125% of value.

Do I need a customs broker?

No. "There is no legal requirement for you to hire a customs broker to clear your goods," as the U.S. International Trade Commission puts it (USITC). Most businesses use one anyway, because filing electronically in ACE takes software, a bond and know-how, and the importer stays responsible for accuracy either way.

What is a formal entry, and do I need a customs bond?

Commercial shipments valued over $2,500 generally require a formal entry, while most lower-value shipments can use an informal entry (eCFR, 19 CFR 143.21). Formal entries require a customs bond, either single-transaction or continuous, which guarantees CBP gets paid (eCFR, 19 CFR Part 113). Bigger duty bills mean bigger bonds, which is why many importers had to raise their bond amounts as tariffs stacked up.

Can I get a refund on IEEPA tariffs?

Yes, in most cases. After the Supreme Court held on Feb. 20, 2026 that IEEPA did not authorize the tariffs, CBP began refunding IEEPA duties through its CAPE process (CBP). Unliquidated and recently liquidated entries are handled administratively; finally liquidated entries currently need a Court of International Trade reliquidation order, which today means being a plaintiff. Our full walkthrough: IEEPA Refund FAQ.

What is CAPE?

CAPE (Consolidated Administration and Processing of Entries) is the tool CBP built inside ACE to process IEEPA refunds in bulk: you or your broker upload a CSV of entry numbers as a CAPE declaration. Phase 1 opened April 20, 2026 for unliquidated entries, Phase 2 on June 29 for reconciliation-flagged entries, and Phase 3 on Oct. 6 for finally liquidated entries covered by a court reliquidation order (CBP). Details in CAPE Phase 3: Who Qualifies, What to Expect.

How much money is being refunded?

CBP puts the total at $166 billion in IEEPA duties assessed from Feb. 3, 2025 to Feb. 24, 2026, across more than 53 million entry summaries (Federal Register). As of Sept. 11, 2026, CAPE had accepted $134.7 billion in claims and sent $122 billion to Treasury for payment, while $1.3 billion across 20,184 approved refunds was stuck on banking problems (GHY International). More in IEEPA Refunds by the Numbers.

How long do IEEPA refunds take?

CBP's stated timeline is 60 to 90 days after a CAPE declaration is accepted, paid electronically with interest under 19 CFR 24.36 (GHY International). Refunds only go out by ACH, so the importer needs current refund banking details in the ACE Portal. A rejected declaration restarts the clock.

What is duty drawback?

Duty drawback is a refund of up to 99% of the duties, taxes and fees paid on imported goods that are later exported or destroyed, or used to make exported products (U.S. Code, 19 U.S.C. § 1313). The main types are unused merchandise (direct identification or substitution at the same 8-digit HTS subheading), manufacturing, and rejected merchandise. Our primer: Duty Drawback, Explained.

How far back can I claim duty drawback?

Five years from the date of importation (U.S. Code, 19 U.S.C. § 1313(r)). That makes drawback the longest look-back of any routine customs recovery: exports you made in 2022 may still be claimable against the entries that brought the goods in. Claims are filed electronically in ACE and processed by CBP's drawback offices (CBP).

Can I claim drawback and an IEEPA refund on the same entry?

Not on the same IEEPA dollars. IEEPA duties come back through CAPE, not drawback, and entries that already carry a drawback claim need careful sequencing before you file a CAPE declaration against them (CBP). Non-IEEPA duties on the same entry, such as Section 301 or MFN duty, remain eligible for drawback. We cover the sequencing in Can You Claim Drawback on an IEEPA Refund Entry?.

What is liquidation?

Liquidation is CBP's final computation of the duties, taxes and fees owed on an entry. Most entries liquidate about 314 days after entry unless extended (The Brightup Group), and an entry CBP hasn't liquidated within one year is "deemed liquidated" as declared, with extensions capped at four years (Cornell LII, 19 U.S.C. § 1504). Liquidation starts the protest clock. Full explainer: Liquidation, Explained.

How do I fix a mistake on an entry before liquidation?

File a Post Summary Correction (PSC) in ACE. CBP accepts PSCs "within 300 days from the date of entry and up to 15 days of the scheduled liquidation date, whichever date is earlier" (CBP). It is the cheapest way to fix a wrong HTS code, value or missed trade-program claim, and it can generate a refund.

What's the deadline to protest?

180 days from the date of liquidation (Cornell LII, 19 U.S.C. § 1514). A protest challenges CBP's decision on classification, rate, value or the liquidation itself; if it's denied, the next step is the Court of International Trade. Miss the 180 days with no protest filed and the entry becomes final.

I forgot to claim USMCA (or another FTA) at entry. Is it too late?

Not if you act within one year of the date of importation. A post-importation claim under 19 U.S.C. § 1520(d) lets you claim free trade agreement preference after the fact and recover the excess duty (Cornell LII, 19 U.S.C. § 1520). You'll need a valid certification of origin and supporting records.

What if I find an error after the deadlines have passed?

If the error underpaid duty, a prior disclosure to CBP before it opens an investigation can substantially reduce penalties (eCFR, 19 CFR 162.74). If it overpaid duty on a final entry, recovery options narrow sharply; that is exactly why the deadlines below are worth tracking.

Most of the money importers leave on the table isn't lost to bad law; it's lost to missed dates. The tariff layers will keep changing, but the clocks underneath them (PSC, liquidation, protest, § 1520(d), drawback) haven't, and knowing which of your entries are open, protestable or final is the habit that pays off no matter what Washington does next.

Related on Trade Talk: CAPE Phase 3: Who Qualifies, What to Expect, and Key Dates · Duty Drawback, Explained · Liquidation, Explained

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