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Tariff Refund System Trips Up Many Businesses Right Away
USAThursday, April 30, 2026
# **Government’s New Tariff Refund System Rejects 15% of Claims in First Days**
When the U.S. government launched **CAPE**, a new online portal for tariff refunds, chaos followed. Within days, **15% of claims—over 75,000 requests**—were denied, leaving thousands of businesses in limbo. Only **47,000 filings** were approved, forcing companies to question their efforts and expenses spent preparing documentation.
### **Why the High Rejection Rate?**
The system enforces **strict eligibility rules**, and most rejections stem from:
- **Misclassified claims** (wrong category selection)
- **Late submissions** (outside the allowed timeframe)
- **Non-qualifying tariffs** (payments not under the **International Emergency Economic Powers Act**, the sole legal authority covered)
Officials insist the denials are intentional—only tariffs finalized or calculable at the portal’s launch qualify. Claims tied to later rulings or unrelated legal bases are automatically disqualified.
A Speedy but Flawed Rollout
Despite early hiccups—including a brief pause on Day 1 to fix delays—the system stabilized quickly. The government raced to deploy CAPE after a Supreme Court ruling removed certain tariffs, catching many off guard with its pace.
A legal expert praised the rollout as "amazing" given the tight deadline and massive influx of filings. Yet, the frustration remains for businesses stuck navigating rigid rules—proving even well-intentioned programs can leave some in the dark.
--- Will the system adapt, or will more companies get left behind?
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