Which Tariffs Are Not Refundable? Section 122, 232, and 301

Updated April 2026. The phrase “tariff refund” can make it sound like every import cost is coming back. That is not how the current process works. The CAPE refund process is focused on duties imposed under the International Emergency Economic Powers Act, or IEEPA, that were invalidated by the Supreme Court. Other tariffs and import costs may still apply.

For small importers, this distinction matters. If you estimate a refund by adding every duty, fee, freight charge, broker charge, and surcharge together, your number may be far too high. That can lead to bad cash-flow planning, poor tax estimates, and awkward conversations with lenders, vendors, or customers.

DeMar Consulting Group helps businesses organize the financial records around refund readiness. We do not decide legal eligibility or file customs claims. A customs broker or trade attorney should confirm which entries and tariff lines qualify. Finance should make sure the estimate is not inflated by non-refundable costs.

The Core Rule: IEEPA Is the Refund Focus

CBP’s IEEPA duty refund page describes CAPE as a process for valid refund requests for duties imposed under IEEPA, as authorized by court order or applicable law. CAPE updates accepted entry summary lines by removing the IEEPA Harmonized Tariff Schedule Chapter 99 provision and corresponding IEEPA duties. That language is narrow on purpose.

In plain English: start by identifying IEEPA duty lines. Then separate everything else. This is one reason a clean entry-level export is more useful than a broad general ledger total called “tariffs.” Your books may tell you how much import cost hit the business. They may not tell you which part is eligible for a CAPE refund unless the duty detail is preserved.

Section 122 Tariffs Need Separate Treatment

After the Supreme Court ruling, the administration moved to new import taxes under a different legal authority. RSM notes that a 10 percent ad valorem tariff was imposed under Section 122 of the Trade Act of 1974 rather than IEEPA. That means Section 122 charges should not be treated as automatically refundable under the IEEPA CAPE process.

For a small importer, the practical step is simple: do not blend IEEPA and Section 122 duties in the same refund estimate. Ask your broker to identify the legal authority and HTS Chapter 99 line for each charge. Your finance team can then keep refund scenarios separate from ongoing tariff exposure.

Section 232 Tariffs May Still Apply

Section 232 tariffs are tied to national security authority and have been used for sectors such as steel, aluminum, autos, and other products. AP’s April 28 coverage noted that many other tariffs remain in effect, including Section 232 levies on foreign steel, aluminum, cars, and other products. Those are not the same as the invalidated IEEPA tariffs.

If your products include steel, aluminum, auto parts, machinery, fixtures, or mixed-material goods, be careful. Some entries may include both refundable and non-refundable lines. Your broker should identify which duty lines belong to which authority. Your accounting team should avoid presenting the entire customs payment as a refund candidate.

Section 301 Tariffs Are Also Different

Section 301 tariffs are connected to unfair trade practice investigations. Many importers know them from China-related duty exposure, but Section 301 can apply more broadly depending on policy actions. A Section 301 charge is not automatically part of the IEEPA refund process simply because it appeared on the same entry or affected the same shipment.

That distinction matters for ecommerce sellers and product companies that import from China. A single entry may include ordinary duties, Section 301 duties, IEEPA duties, merchandise processing fees, harbor maintenance fees, broker fees, and freight. Only a subset may be in the current CAPE refund universe.

Fees and Service Charges Are Not the Same as Duties

Import paperwork can include charges that feel like tariffs because they were paid during the same process. Broker fees, administrative fees, disbursement fees, freight, storage, insurance, and other service charges are different from government-imposed IEEPA duties. Do not include them in a refund estimate unless your customs advisor specifically confirms they are part of a recoverable amount.

This is also important for customer communication. If customers saw a “tariff surcharge” on invoices, make sure the surcharge actually maps to refundable IEEPA duties before making promises. Finance, operations, and legal counsel should review the language together.

How to Build a Cleaner Refund Estimate

• Start with entry-level customs data, not only general ledger totals.
• Separate IEEPA Chapter 99 lines from Section 122, Section 232, Section 301, normal duties, and fees.
• Mark entries by liquidation status and Phase 1 eligibility.
• Keep rejected, uncertain, and later-phase entries out of the base-case cash forecast.
• Reconcile the eligible duty list to the accounts where duties were recorded.
• Document assumptions so management can see what is included and excluded.

If your business imports through multiple brokers or entities, this process may take time. It is still better than using an inflated estimate that later has to be walked back. For product businesses, DeMar Consulting Group can help connect the customs data to accounting records, ecommerce tax reporting, and business tax planning.

Frequently Asked Questions

Does a tariff refund mean every duty I paid is coming back?

No. The current CAPE process is focused on qualifying IEEPA duties. Other tariffs, normal duties, and fees require separate analysis.

Can one entry include both refundable and non-refundable charges?

Yes. That is why entry-level detail matters. A total customs payment may include several duty authorities and fees.

Who should confirm tariff eligibility?

Your customs broker or trade counsel should confirm eligibility and filing options. DeMar Consulting Group can help prepare the financial records and cash-flow analysis around that work.

Separate the Customs Payment Stack

When an import payment leaves the bank account, it may include several layers. The business may pay ordinary duties, IEEPA duties, Section 301 duties, Section 232 duties, merchandise processing fees, harbor maintenance fees, broker fees, freight, bond charges, storage, or disbursement fees. A refund estimate should identify each layer instead of treating the payment as one tariff bucket.

This matters for accounting too. One part of the payment may affect inventory. Another part may be an operating expense. Another part may not be recoverable at all. If the original payment was recorded as one line in the books, build a supporting schedule that breaks the payment into its parts.

Use the Analysis to Budget Future Tariff Exposure

The end of one IEEPA tariff program does not mean import cost volatility is over. Other tariff authorities remain in effect, and new duties may still be pursued under different laws. Small importers should use the refund exercise to build a cleaner tariff budget for the next buying cycle.

That budget should separate normal duties, current special tariffs, expected freight, broker costs, and uncertain policy exposure. It should also show product margin after landed cost, not just supplier invoice cost. This is where finance can turn a one-time refund project into a better operating model.

Questions to Ask Your Broker

• Which entries include IEEPA duty lines?
• Which entries include Section 122, Section 232, or Section 301 duties?
• Which entries appear eligible for CAPE Phase 1?
• Which entries need later-phase tracking?
• Which entries include charges that are fees rather than duties?
• What reports should finance retain for accounting support?

Why This Matters for Pricing

Many small importers raised prices or added surcharges when tariff costs increased. If management now assumes all tariffs are refundable, it may cut prices too early or tell customers the wrong story. Separate refundable IEEPA duties from continuing tariff exposure before changing price lists, customer quotes, or marketplace listings.

Pricing should reflect the current landed cost, not last month’s headline. If Section 232 or Section 301 duties still apply to a product line, those costs may remain part of the margin calculation. If Section 122 or a later replacement tariff applies, build that into forward-looking cost models. A refund from the old program does not erase the need to price for the current one.

Build Two Views: Recovery and Exposure

The recovery view tracks what may come back from past IEEPA duties. The exposure view tracks what the business still pays or may pay on future imports. Keeping those views separate helps owners avoid a common mistake: using a past refund to hide an ongoing margin problem.

Review these two views monthly while tariff policy remains active. The recovery view should shrink as claims move from identified to filed to paid. The exposure view should update whenever suppliers, product classifications, countries of origin, freight lanes, or tariff rules change. Together, they give management a clearer picture than either view can provide alone.

This separation also makes year-end tax planning easier because the team can see which costs were recovered, which costs remain part of product margin, and which costs may continue into the next purchasing cycle.

Need a refund estimate that finance can actually use? Request a Tariff Refund Readiness Review before you build plans around the wrong number.