News Update

FedEx, UPS, and DHL Say They Will Pass IEEPA Tariff Refunds to Customers

Major parcel carriers and freight companies announced plans to pass IEEPA tariff refund payments through to the shippers who originally paid the surcharges.

Editorial Team Published

In the weeks following the Supreme Court’s February 20 ruling in Learning Resources, Inc. v. Trump, major shipping and logistics companies faced pressure to clarify what would happen to IEEPA-related surcharges that customers had paid on their behalf.

FedEx, UPS, and DHL — which collect customs duties and tariff surcharges on behalf of importers in certain service configurations — each issued statements indicating they intend to return IEEPA tariff amounts to the customers who originally bore those costs.

What the Carriers Said

FedEx released a statement saying it would work to identify shipments where IEEPA tariff surcharges were collected from customers and would develop a process to refund or credit those amounts. The company did not provide a specific timeline.

UPS issued similar language, noting that it takes seriously its obligations to customers who relied on UPS for customs clearance and that it intends to pass IEEPA refunds through to the appropriate party.

DHL committed to reviewing its international customs brokerage accounts for IEEPA exposure and contacting affected customers.

What This Means for Small Importers

For small businesses that used carrier customs brokerage services — rather than independent freight forwarders — for their China imports, the carrier statement is significant. These businesses may have never filed their own CBP entries; instead, the carrier filed as importer of record.

If this is your situation, watch for direct communication from your carrier. Do not attempt to file a CAPE claim independently if the carrier was your IOR — doing so would create a duplicate claim situation.

Caveat: Timelines Are Uncertain

None of the carriers provided firm timelines for when passthrough payments would be made. Their statements were broadly worded, and the actual mechanics of how carriers will identify affected shipments, calculate refund amounts, and distribute payments to customers remain unclear.

Importers who used carrier brokerage services and are concerned about the status of their potential refunds should contact their carrier account manager directly.

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