CBP Clarifies IEEPA Tariff Refunds Under USMCA Claims

Trade Update • Sept.16, 2025

Key Points

• CBP updated its FAQ page to clarify that importers can file USMCA 1520(d) refund claims for qualifying goods within one year, and also recover the IEEPA duties paid on those goods.

• Requests to add a post importation USMCA claim must be filed through the ACE protest module, paper protest, or FTA reconciliation entry if flagged.

• FTA reconciliation entries require a Special Program Indicator (SPI) for IEEPA duties; classification changes are not allowed.

• IEEPA duties began March 4, 2025; USMCA exceptions for Canada and Mexico started March 7, 2025, so no refunds for entries between March 4-6 can be filed.

On September 9, 2025, U.S. Customs and Border Protection (CBP) updated a question on its International Emergency Economic Powers Act (IEEPA) FAQ page, clarifying that importers of record can seek refunds for IEEPA tariffs paid on U.S.-Mexico-Canada Agreement (USMCA) qualifying foods from Canada and Mexico by filing post-importation USMCA 1520(d) claims within one year from the date of importation.

CBP’s IEEPA FAQ page covers a wide range of topics related to these tariffs, including eligibility, filing procedures, tariff applicability, and trade remedies. The latest update specifically addresses how and when importers can file for refund claims related to IEEPA tariffs under USMCA.

Details on CBP’s Updated FAQ

Below is the updated question and answer from the U.S. CBP’s IEEPA FAQ page.

Q: Can I file a USMCA 1520(d) claim and obtain a refund of additional “IEEPA duties” paid, i.e., those duties imposed pursuant to recent Executive Orders under International Emergency Economic Powers Act (IEEPA) authorities?

A: An importer of record who can substantiate a valid claim for preferential tariff treatment under the USMCA may file a claim pursuant to 19 U.S.C. § 1520(d) within one year of the date of importation. The 1520(d) claim may include additional “IEEPA duties” paid pursuant to Executive Order (E.O.) 14193, as amended, and E.O. 14194, as amended. 1520(d) claims that include additional “IEEPA duties” need to be filed via the ACE protest module, paper or a Free Trade Agreement (FTA) reconciliation entry.

If an entry is flagged for FTA reconciliation, the filing of an FTA reconciliation entry is the only way to make a 1520(d) claim. On the FTA reconciliation entry, the applicable Special Program Indicator (SPI) can be added to line item(s) with the IEEPA duties paid on the flagged entry. Classification changes cannot be made on an FTA reconciliation entry. For example, a classification change of 9903.01.01 (IEEPA Mexico) to 9903.01.04 (IEEPA Mexico USMCA exception) cannot be made on an FTA reconciliation entry and is not required to be changed on the flagged entry for the purposes of FTA reconciliation.

The IEEPA duties on certain products of Canada and Mexico went into effect for goods entered for consumption or withdrawn from warehouse for consumption on or after March 4, 2025 pursuant to E.O. 14197 and E.O. 14198. However, the exception from additional IEEPA duties for goods of Mexico and Canada qualifying for preferential treatment under the USMCA was effective on March 7, 2025, as outlined in E.O. 14231 and E.O. 14232. Thus, for any goods eligible for preferential tariff treatment under USMCA that are entered for consumption or withdrawn from warehouse for consumption between March 4 and March 6, 2025, the filing of a USMCA 1520(d) claim for IEEPA duties paid is not permitted because the exception for USCMA goods is not retroactive to March 4.

Breakdown

• Who Can File Claims?
  Importers of record who can demonstrate preferential tariff treatment under USMCA may file a refund claim for IEEPA tariffs paid.

• Deadline for Filing
  Claims must be filed within one year from the date of importation to be valid.

• Filing Methods
  Claims can be submitted via CBP’s Automated Commercial Environment (ACE) protest module, paper submission, or through a Free Trade Agreement (FTA) reconciliation entry if the entry is flagged for reconciliation.

• Special Filing Considerations
  • For entries flagged as FTA reconciliation, claims must be filed through the reconciliation entry.
  • Classification changes are not permitted on these reconciliation entries, meaning importers cannot alter tariff codes during this claim process.

• Effective Dates and Refund Restrictions
  The USMCA exception for additional IEEPA tariffs applies starting March 7, 2025. Importers cannot claim refunds for goods entered between March 4 and March 6, 2025, because the exemption is not retroactive to those dates.

• Significance for Importers
  This update provides a clear guidance to recover tariffs previously thought non-refundable, offering relief amid continuing legal uncertainty over IEEPA tariffs.

Background Information

IEEPA tariffs were imposed in early 2025 as part of U.S. trade actions, including a 25% tariff on most Canadian and Mexican imports effective March 4, 2025. This action, covered in our update on the U.S. 25% Tariff on Canada and Mexico Imports In Effect March 4th, aimed to address trade and security concerns. The tariffs raised questions about potential tariff stacking with existing agreements like USMCA and refund eligibility.

We also covered CBP’s Guidance on Executive Order Issued to Prevent Tariff Stacking on U.S. Imports, which clarifies the prioritization and application of overlapping tariffs and outlines the procedures for reporting and requesting refunds.

The recent CBP FAQ update builds on this by providing clear procedures for importers to file post-importation refund claims for these IEEPA tariffs under USMCA, within one year of importation.

Important Actions for Importers

Importers seeking refunds for IEEPA tariffs paid on goods from Canada and Mexico should:

• Carefully examine all entries from March 7, 2025, onward to identify shipments subject to IEEPA tariffs and eligible for USMCA preferential treatment.
• Submit post-importation USMCA 1520(d) claims within one year of each importation date, which may include a refund of IEEPA duty.
• A 1520(d) claim must be filed through the ACE protest module, paper protest, or Free Trade Agreement (FTA) reconciliation entries if the original entry was flagged accordingly.
• Follow filing procedures. For FTA reconciliation flagged entries, use the FTA reconciliation process only. Do not alter product classifications during these filings as changes are not permitted.

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