About This Tool
China IEEPA refund methodology
Background, legal posture, rate history, and calculation rules for the China IEEPA refund estimator and entry upload workspace.
What Happened
On February 20, 2026, the U.S. Supreme Court ruled 6-3 in Learning Resources, Inc. v. Trump that the International Emergency Economic Powers Act (IEEPA) does not grant the President authority to impose tariffs. The decision invalidated every tariff imposed under IEEPA since February 2025. Approximately $166 billion was collected from over 330,000 importers across 53 million entry summary lines.
On March 4, 2026, the U.S. Court of International Trade ordered U.S. Customs and Border Protection to refund all affected importers, not just those who filed lawsuits. CBP is building a new refund system (CAPE) within the ACE portal, expected to launch mid-April 2026. Interest on refunds accrues at approximately $650 million per month while they remain outstanding.
IEEPA: What It Is (History)
The International Emergency Economic Powers Act (IEEPA) is a 1977 statute that authorizes the President to regulate certain economic transactions after declaring a national emergency related to an unusual and extraordinary foreign threat. Historically, IEEPA has been used for sanctions and financial controls, not as a general tariff authority.
The 2026 Supreme Court decision clarified that IEEPA does not provide statutory authority to impose import tariffs. As a result, IEEPA-based duties collected beginning in February 2025 were invalidated and became refundable under CBP’s refund process.
What IEEPA Tariffs Were Imposed on China
Two separate IEEPA tariffs applied to goods from China, Hong Kong, and Macau. Both were struck down. Both are refundable. They operated under different executive orders, different HTS Chapter 99 headings, and different exception rules.
Fentanyl Tariff (EO 14195)
Imposed to address what the administration described as China’s role in the synthetic opioid crisis. This tariff applied to all goods from China with no exceptions, including goods already subject to Section 232 duties and goods on the Annex II exclusion list. Duty drawback was explicitly prohibited for the fentanyl tariff under EO 14195.
| Period | Rate | Legal authority |
|---|---|---|
| Feb 4 – Mar 3, 2025 | 10% | EO 14195 (Feb 1, 2025) |
| Mar 4 – Nov 9, 2025 | 20% | EO 14228 (Mar 3, 2025) |
| Nov 10, 2025 – Feb 23, 2026 | 10% | EO 14357 (Nov 4, 2025), Kuala Lumpur arrangement |
HTS heading: 9903.01.24 (9903.01.20 for earliest entries). Only exceptions: humanitarian donations (9903.01.21), informational materials (9903.01.22), and certain in-transit goods loaded before Feb 1, 2025 (9903.01.23).
Reciprocal Tariff (EO 14257)
Imposed on April 2, 2025 (“Liberation Day”) as part of a global tariff action citing the U.S. trade deficit as a national emergency. Unlike the fentanyl tariff, the reciprocal tariff had multiple exceptions. Duty drawback was permitted for the reciprocal tariff, so importers who claimed drawback on reciprocal duties already recovered that portion and should not double-count it.
| Period | Rate | Legal authority |
|---|---|---|
| Before Apr 5, 2025 | 0% | Did not exist |
| Apr 5 – Apr 8, 2025 | 10% | EO 14257 (Apr 2, 2025) |
| Apr 9, 2025 | 84%* | EO 14259 (Apr 8, 2025) |
| Apr 10 – May 13, 2025 | 125% | EO 14266 (Apr 9, 2025) |
| May 14, 2025 – Feb 23, 2026 | 10% | EO 14298 (May 12, 2025), Geneva deal |
*The 84% rate took effect at 12:01 AM EDT on April 9. Entries filed before that time may have been assessed at 10%. HTS heading: 9903.01.25 (10% baseline) or 9903.01.63 (China-specific elevated rate).
Products exempt from the reciprocal tariff
Full Section 232 products (9903.01.33)
Steel (Ch. 72/73), aluminum (Ch. 76), copper (Ch. 74), automobiles and auto parts, semiconductors, timber, and heavy trucks classified directly under Section 232 HTS codes. Exempt from the reciprocal tariff on their entire value because they were already subject to separate Section 232 tariffs under a different legal authority. Section 232 tariffs are not affected by the SCOTUS ruling and are not refundable.
Annex II products (9903.01.32)
Electronics (laptops, smartphones, monitors), semiconductor devices and equipment, solid-state storage, certain pharmaceuticals, energy products, and critical minerals. The list changed over time, and products added after April 11, September 8, and November 14 were only exempt from their effective dates. Entries filed before a product was added paid the reciprocal tariff, and that amount is refundable.
U.S. content (9903.01.34)
Products with at least 20% U.S.-origin content paid the reciprocal tariff only on the non-U.S. portion.
Important exception: Products with an active Commerce-granted Section 232 product-specific exclusion (zeroing out 232 duty) did not qualify for the 9903.01.33 reciprocal exemption. These products paid the reciprocal tariff, and that amount is refundable.
Combined IEEPA Rate on China
For products that paid both tariffs (general goods, not 232 or Annex II), the combined rate was:
| Period | Fentanyl | Reciprocal | Combined |
|---|---|---|---|
| Feb 4 – Mar 3, 2025 | 10% | - | 10% |
| Mar 4 – Apr 4, 2025 | 20% | - | 20% |
| Apr 5 – Apr 8, 2025 | 20% | 10% | 30% |
| Apr 9, 2025* | 20% | 84% | 104% |
| Apr 10 – May 13, 2025 | 20% | 125% | 145% |
| May 14 – Nov 9, 2025 | 20% | 10% | 30% |
| Nov 10, 2025 – Feb 23, 2026 | 10% | 10% | 20% |
*April 9 rate took effect at 12:01 AM EDT. These IEEPA tariffs were assessed on top of MFN duties, Section 301, Section 232, and AD/CVD. They were cumulative.
The June 4, 2025 Stacking Change
On June 4, 2025, Proclamation 10947 changed how Section 232 tariffs interacted with IEEPA tariffs for derivative products: downstream manufactured goods containing steel, aluminum, or copper but classified outside primary metal chapters (72, 73, 74, 76). Examples: machinery with steel frames, tools with aluminum handles, electronics with copper wiring.
Before June 4, 2025
Derivative products under 232 HTS codes were treated like full 232 products. The entire value was “subject to Section 232 duties” (at 25%), so they claimed the 9903.01.33 exemption. Entire value exempt from the reciprocal tariff.
After June 4, 2025
232 duty (increased to 50%) applied only to the metal content value. Only the metal portion could claim the reciprocal exemption. The non-metal portion became subject to the IEEPA reciprocal tariff (10%).
Importers commonly split entries into two lines: (1) non-metal portion subject to reciprocal tariff (refundable) and (2) metal portion subject to 232 duty (not refundable). Metal content value is determined from supplier invoices per 19 U.S.C. § 1401a.
Throughout the entire period, the fentanyl tariff applied to the full customs value of derivative products (both metal and non-metal) and is fully refundable regardless of the June 4 change.
How This Tool Calculates Your Refund
Product classification
General goods: Paid both fentanyl and reciprocal tariffs on full customs value. Both components refundable.
Full Section 232 products: Fentanyl on full value (refundable). Reciprocal exempt.
Derivative Section 232 products: Fentanyl on full value (refundable). Reciprocal depends on date: before June 4 entire value exempt; after June 4 reciprocal on non-metal portion is refundable.
Annex II products: Fentanyl on full value (refundable). Reciprocal exempt from the date added to Annex II; entries before that date paid reciprocal (refundable).
Rate application
For each entry, the tool looks up fentanyl and reciprocal rates by entry date, applies the applicable exceptions based on product classification, and calculates the refundable amount.
Interest calculation
Interest on overpaid duties accrues under 19 U.S.C. § 1505(c) from the date of duty deposit to the date of liquidation or reliquidation. The rate is set quarterly by the IRS under 26 U.S.C. § 6621: the Federal short-term rate plus 3 percentage points for non-corporate overpayments (about 7% annually) or plus 2 percentage points for corporate overpayments (about 6% annually).
Tier 1: Bucket estimator
Uses simple interest from the midpoint of your import date range to today. Uses 7% (non-corporate) or 6% (corporate).
Formula: refund × annual_rate × (days_from_midpoint / 365)
Tier 2: Entry-level upload
Uses daily compounding under 26 U.S.C. § 6622, segmented across quarterly IRS rate periods. Interest begins on deposit date (entry date + 15 days) and accrues through liquidation date or today if unliquidated.
Quarterly rates are applied per period; if rates change in future quarters, the tool segments across those boundaries.
What Is NOT Refundable
The following tariffs are imposed under separate legal authorities unaffected by the SCOTUS ruling:
- Section 232 tariffs on steel, aluminum, copper, automobiles, semiconductors, timber, and heavy trucks (Trade Expansion Act of 1962)
- Section 301 tariffs on Chinese goods (Trade Act of 1974)
- Section 201 safeguard tariffs on solar cells and washing machines
- Section 122 tariff (10% global surcharge imposed Feb 24, 2026 as IEEPA replacement)
- Antidumping and countervailing duties
- MFN (Column 1) general duty rates
Duty drawback note: Reciprocal tariff amounts on which drawback was already claimed should not be double-counted. Drawback was permitted on reciprocal duties (EO 14257) but was not permitted on fentanyl duties (EO 14195). Fentanyl duties are fully refundable regardless of drawback history.
De Minimis & Informal Entries
After May 2, 2025, the de minimis exemption (duty-free treatment for shipments valued at $800 or less) was suspended for Chinese-origin goods under EO 14256. Low-value postal and courier shipments from China began paying IEEPA tariffs at flat per-item or ad valorem rates under EO 14298. These duties were also imposed under IEEPA authority and are refundable.
This tool does not currently handle de minimis or informal postal entry rate structures in detail. Importers with these entries should consult their customs broker or the CBP CAPE portal when available.
Limitations & Accuracy
Tier 1: Bucket estimator
Uses per-phase rates across your import period. Does not calculate per-entry amounts. Designed to provide an order-of-magnitude estimate for planning and prioritization.
Tier 2: Entry-level upload
Calculates per-entry refund amounts using entry date and classification. Best accuracy with ACE ES-002 data or broker filing with Chapter 99 codes.
Known limitations
- Derivative 232 products filed on split entry lines after June 4: if uploaded data lacks entry numbers or split-line structure, metal/non-metal lines may not pair correctly.
- Simple interest approximation in Tier 1; actual CBP interest uses daily compounding (typically small differences).
- Does not auto-detect post-summary corrections already filed, duty drawback already claimed on reciprocal tariffs, reconciliation entries, or amended entries.
- De minimis and informal entries may have different rate structures and may liquidate upon payment; some protest windows may have closed.
- Annex II exemption checking may be simplified; full list coverage depends on available classification detail.
- Products with active Section 232 product-specific exclusions are not auto-detected; reciprocal refund may be higher than estimated.
Disclaimer
CBP’s CAPE refund portal was not operational as of March 27, 2026. This tool exists to provide small and mid-size U.S. importers a free, immediate way to estimate what they are owed and prepare for the refund process. Estimates are for informational and planning purposes only and do not constitute legal, tax, customs, or professional advice of any kind.
Actual refund amounts will be determined by U.S. Customs and Border Protection through the liquidation and reliquidation process. Individual results depend on specific entry details, product classifications, and CBP determinations that may differ from these estimates. The refund process is ongoing and procedural details (including CAPE specifications, protest processing timelines, and interest calculations) may change.
Consult a licensed customs broker, trade attorney, or tax advisor before making decisions based on these estimates. This tool is not affiliated with U.S. Customs and Border Protection, the Court of International Trade, or any government agency.
Rates and rules derived from EO 14195, 14228, 14257, 14259, 14266, 14298, 14334, 14357, 14358; Proclamation 10947; 19 U.S.C. §§ 1401a, 1505; 26 U.S.C. §§ 6621, 6622; 19 CFR § 24.3a; CBP IEEPA FAQ; Learning Resources, Inc. v. Trump, 607 U.S. ___ (2026); V.O.S. Selections, Inc. v. United States (CIT, Mar. 4, 2026).