India-linked US tariff refunds may reach $12 billion
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New Delhi: India-linked tariff refunds on exports to the United States could total between $10 billion and $12 billion, following the opening of a $166 billion claims window by US authorities for customs duties imposed during the administration of Donald Trump that were later struck down by courts, according to a report by the Global Trade Research Initiative.
The refund process began on April 20, but claims can only be filed by US-based importers, leaving Indian exporters without a direct legal route to seek repayments. As a result, Indian companies must rely on negotiations with American buyers to secure any share of the refunds, potentially through rebate-sharing arrangements, revised pricing, or improved contract terms.
The report noted that while the estimated refund size presents a significant opportunity, actual gains for Indian exporters will depend on their bargaining power and ability to renegotiate commercial agreements with US partners.
Sectors such as textiles and apparel, engineering goods, and chemicals are expected to account for a major portion of the India-linked refunds, as they were among the hardest hit by the earlier tariff hikes.
The refund platform is being managed by US Customs and Border Protection through its Consolidated Administration and Processing of Entries (CAPE) system.
In the first phase, eligibility covers businesses with unliquidated entries—import filings still under customs review—as well as those finalised within the past 80 days. Importers with older finalised entries will have to wait for subsequent phases to file claims.
US customs officials informed a federal judge that businesses currently eligible under this initial phase are owed approximately $127 billion in refunds.
The process is expected to be lengthy, requiring importers to submit claims through the CAPE portal with detailed documentation, including customs filings, tariff payment records, and entry classifications.
The agency is handling around 53 million entries filed by 330,000 importers, and even after approval, refunds may take 60 to 90 days to be disbursed.
Although the US administration has since used Section 122 of the Trade Act of 1974 to impose newer tariffs, the court ruling means earlier collections cannot be retrospectively validated. For many importers, the launch of the portal marks the beginning of a prolonged reimbursement process.
With IANS inputs