FedEx, UPS to Refund Customers for Invalid Tariffs

Major shipping companies FedEx and UPS have pledged to refund customers for tariffs collected on their behalf after a U.S. Supreme Court ruling invalidated duties imposed under the International Emergency Economic Powers Act. U.S. Customs and Border Protection began processing refund claims this month through a phased online portal, with the first payments to companies expected around May 11.

The Supreme Court ruled in February that the 1977 law did not authorize the tariffs, opening the door to refunds on approximately $166 billion in collections. Customs and Border Protection launched the Claims and Payment Engine portal earlier this month, receiving more than 75,000 requests by late April. About 3 percent of those have been processed and approved for Phase One, which covers payments made starting January 30 as well as pending tariffs. The agency expects to issue most valid refunds within 60 to 90 days of approval, though complex cases may take longer.

UPS, which handled 16 million related entries and remitted about $5 billion in tariffs to the Treasury, confirmed it has submitted refund requests and established a process to distribute funds to customers. "We are just a...