Carrier Refund Update
Refunds are starting to move, but the accounting question is not finished.
CBP has begun issuing IEEPA tariff refunds on a rolling basis. For small importers that paid tariff charges through FedEx or UPS, the next step is not waiting for a credit. Finance needs to confirm who receives the refund first, what the credit covers, and how the company should record the money.
FedEx now says CBP has begun issuing IEEPA tariff refunds on a rolling basis. Bloomberg Law reported that refunds began reaching importer bank accounts in early May. By May 12, the administration had cleared more than $35.5 billion for successful filers. UPS continues to say payors do not need to contact UPS for shipments where UPS was Importer of Record, but UPS cannot issue refunds until CBP pays UPS.
Quick Answer
FedEx and UPS tariff refunds are moving, but not every customer should expect the same timing or amount. The refund path depends on several facts: who was Importer of Record, who paid the carrier invoice, whether the charge was an eligible IEEPA duty, whether CBP accepted the claim, and whether the carrier has finished its own reconciliation.
That means finance should treat a carrier announcement as a starting signal, not as cash in the bank. Build the file before recording income, reducing inventory, adjusting cost of goods sold, or passing money back to customers. The support should tie the refund to the entry, invoice, original accounting treatment, and final payment detail.
What Changed With FedEx and UPS Refunds?
The biggest change is that the refund process has moved from “claims are being prepared” to “refunds are beginning to be issued.” CBP has started issuing IEEPA refunds for accepted claims, and FedEx has updated its guidance to say those refunds are now moving on a rolling basis.
FedEx says it began submitting CAPE Declarations on April 20, 2026, for Phase 1-eligible entries where FedEx served as customs broker. FedEx also says that when CBP issues funds to FedEx, FedEx will complete a reconciliation before returning funds to customers, and will provide refund details, including applicable interest, within 60 days of receipt.
UPS says that for shipments where UPS was the Importer of Record, UPS will request and retrieve IEEPA tariff refunds from CBP on customers’ behalf. UPS says customers do not need to take further action for those shipments right now. The key caveat is timing: UPS cannot issue payor refunds until it receives the funds from CBP.
This update covers current movement. For the step-by-step finance workflow, use FedEx and UPS Tariff Refunds: What Small Importers Should Do Now. Before booking a credit, also review IEEPA refund readiness, cash-flow planning, and the CAPE rejection checklist.
Not Every Carrier Charge Is Part of the Refund
A FedEx or UPS invoice can include more than one kind of charge. It may show IEEPA duty, other customs duties, Section 232 duties, Section 301 duties, freight, brokerage, advancement fees, administrative fees, storage, or other service charges. The current IEEPA refund process does not make all of those costs refundable.
That is why the refund amount may be smaller than the original carrier invoice. A smaller refund is not automatically a problem. It may simply mean the invoice included nonrefundable charges or duties outside the IEEPA refund process.
| Invoice Line | Refund Treatment | Finance Action |
|---|---|---|
| IEEPA duty | Potentially refundable if eligible and accepted | Track by entry number, duty line, payor, and original account |
| Section 122, 232, or 301 duty | Separate from the IEEPA process | Keep out of the base-case IEEPA refund estimate unless an advisor confirms treatment |
| Freight, brokerage, advancement, administrative fees | Usually not part of IEEPA duty recovery | Reconcile separately so the carrier credit is not overstated |
| Carrier credit or ACH refund | May include refund, interest, offset, or adjustment detail | Do not let the memo line choose the accounting treatment |
A Five-Step Refund Tracking Workflow
Use this process before promising customers a credit, spending expected cash, or recording a carrier refund broadly to income.
- Identify who was Importer of Record. Pull the entry summary or carrier entry documentation. Confirm whether your business, FedEx, UPS, or another party controls the CBP refund path.
- Separate IEEPA duties from other charges. Do not use the total carrier invoice as the refund estimate. Split duty, freight, fees, and other tariff programs into separate lines.
- Confirm the refund path. If your business was Importer of Record, you may need to work through ACE, ACH setup, a broker, or trade counsel. If the carrier was Importer of Record, the carrier may receive funds first and then credit the payor.
- Hold the accounting entry until support is clear. A news update, status email, or invoice note is not enough by itself. The entry should tie to payment records, original book treatment, and refund detail.
- Update the cash forecast. Show gross refund, expected timing, possible carrier delay, partial refund risk, offsets, and spendable cash as separate assumptions.
What to Put in the Finance File
The finance file does not need to be fancy. It needs to be defensible. If a refund lands three months from now, the bookkeeper, CPA, owner, and operations lead should be able to see why the team recorded the entry that way.
Do Not Mix Section 122 With IEEPA
There is also new noise around Section 122 tariffs. FedEx has noted that a May 7, 2026 Court of International Trade ruling addressed certain Section 122 tariffs for specific plaintiffs. That decision is separate from the IEEPA refund process, and the government has already appealed it. FedEx says Section 122 duties are not currently eligible for IEEPA tariff refunds.
For finance teams, the practical rule is direct: do not let one tariff headline contaminate the refund schedule. Keep IEEPA, Section 122, Section 232, Section 301, ordinary duties, and service charges in separate columns.
How DeMar Consulting Group Helps
DeMar Consulting Group helps small businesses organize the finance side of tariff refunds. That includes gathering carrier invoices, mapping charges to entries, separating likely refunds from nonrefundable costs, reconciling credits to the general ledger, and preparing cash-flow scenarios before management spends or books the money.
Customs eligibility and filing authority should stay with your customs broker or trade counsel. The finance layer is different. It is the work that connects the refund mechanics to accounting, cash planning, customer pass-throughs, tax timing, and management reporting.
FedEx and UPS Tariff Refund FAQ
Are FedEx and UPS tariff refunds being paid now?
CBP has begun issuing IEEPA tariff refunds on a rolling basis. FedEx and UPS refunds to customers still depend on whether the carrier receives funds from CBP, the shipment role, and the carrier reconciliation process.
Will FedEx or UPS refund every import charge?
No. The current IEEPA refund process does not cover every duty, tariff, freight charge, brokerage fee, or administrative charge. Finance teams should separate eligible IEEPA duty from other invoice lines before estimating recovery.
What should small importers do before recording a carrier refund?
Confirm Importer of Record status, who paid the carrier invoice, who bore the cost, which entry or duty line is being refunded, and how the original cost was recorded in the books.
Still waiting on the carrier credit?
Use Where Is My FedEx or UPS Tariff Refund? to check IOR status, CAPE timing, invoice lines, and accounting support before treating a FedEx, UPS, DHL, broker, or CBP credit as bookable.
Sources
- FedEx: Navigating U.S. tariffs and customs regulations
- UPS: IEEPA Tariff Refund Process
- CBP: International Emergency Economic Powers Act (IEEPA) Duty Refunds
- AP News: Companies begin seeking refunds for overturned U.S. tariffs
- Bloomberg Law: Tariff refunds of $35.5 billion cleared for importers so far
- Greenberg Traurig: Section 122 and IEEPA refund update
Continue the Tariff Refund Cluster
Use these live guides to organize the records, accounting treatment, refund estimate, and CAPE follow-up work before the filing process gets too far ahead of the finance work.
Readiness Guide
IEEPA Tariff Refund Readiness for Small Importers
Records, broker handoffs, finance questions, and cash-flow assumptions to organize before CAPE work moves.
CAPE Phase 1 Checklist
CAPE Phase 1 Checklist for Small Importers
ACE access, ACH refund setup, entry records, broker coordination, and accounting records to organize before pursuing CAPE.
Accounting Guide
How to Account for a Tariff Refund in Your Books
How the original duty treatment, inventory status, customer pass-throughs, and tax timing shape the bookkeeping answer.
Cash-Flow Guide
Tariff Refunds and Cash Flow Planning
Timing scenarios, offsets, partial approvals, and working-capital assumptions to keep the forecast grounded.
Refundability Guide
Which Tariffs Are Not Refundable?
Separate IEEPA recovery from Section 122, Section 232, Section 301, normal duties, freight, and broker fees.
CAPE Error Guide
CAPE Rejection Errors: A Small Importer Checklist
Common CAPE rejection causes to check before resubmitting or escalating questions to the filing team.
Carrier Refund Guide
FedEx and UPS Tariff Refunds: What Small Importers Should Do Now
How to track carrier-paid duties, credits, statements, and refund ownership before booking or spending the cash.
Invoice Reconciliation
Why Your Tariff Refund May Not Match Your Shipping Invoice
Why invoices, duty payments, broker records, and final refund amounts may not line up one-for-one.
Refund Ownership Guide
Who Gets the Tariff Refund? Importer of Record, Payor, Customer, or Broker
How importer, payor, customer, broker, and carrier roles affect who should receive and record the refund.
Need the finance side cleaned up before the refund lands?
DeMar Consulting Group can help organize the records, accounting treatment, cash-flow scenarios, and management decision file before a FedEx or UPS credit turns into month-end guesswork.
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