Who sets tariff rates in the U.S.?

Congress has the constitutional power to set tariffs, but has delegated significant authority to the President through laws like IEEPA, Section 301, and Section 232. The HTS base rates are set by statute.

Are all tariffs refundable?

No. Only tariff overpayments resulting from rate reductions under IEEPA are eligible for CAPE refunds. Base MFN rates, Section 232, Section 301, and trade remedy duties have separate processes (for Section 301, that means USTR exclusions or a section 1514 protest).

Duty Types

What is Tariff?

A tax imposed on imported goods, used to protect domestic industries, raise revenue, or enforce trade policy. In the context of U.S. customs and tariff recovery, understanding tariff is essential for navigating the CAPE refund process and ensuring accurate duty assessment.

Definition

A tariff is a tax imposed by a government on goods imported from other countries. Tariffs serve multiple policy objectives: protecting domestic industries from foreign competition, generating government revenue, retaliating against unfair trade practices, and advancing geopolitical or economic goals. In the United States, tariffs are codified in the Harmonized Tariff Schedule (HTS) and enforced by CBP. The term 'tariff' can refer to the tax itself (duty) or to the schedule of rates (the HTS). Additional tariffs beyond the base rate may be imposed under Section 201, 232, 301, or IEEPA authorities.

How Tariff Relates to Tariff Refunds

Tariff overpayments are the foundation of the CAPE refund program. When tariff rates imposed under IEEPA are reduced or eliminated, the difference between what was paid and what should have been owed at the lower rate is refundable through CAPE. (Section 301 overpayments are recovered separately — via USTR exclusions, Post-Summary Correction, or a section 1514 protest — not through CAPE.) Tariffi's platform automates the identification and quantification of these overpayments.

Example

A 25% IEEPA reciprocal duty (HTS 9903.02) is imposed on Chinese imports. An importer pays $500,000 in those duties over 12 months. When the rate drops to 10%, the $300,000 difference is the tariff overpayment eligible for a CAPE refund.

Frequently Asked Questions

Who sets tariff rates in the U.S.?: Congress has the constitutional power to set tariffs, but has delegated significant authority to the President through laws like IEEPA, Section 301, and Section 232. The HTS base rates are set by statute.
Are all tariffs refundable?: No. Only tariff overpayments resulting from rate reductions under IEEPA are eligible for CAPE refunds. Base MFN rates, Section 232, Section 301, and trade remedy duties have separate processes (for Section 301, that means USTR exclusions or a section 1514 protest).

Legal References

19 U.S.C. § 1202 — Harmonized Tariff Schedule
U.S. Constitution Art. I § 8 cl. 1 — Tariff Power

Ready to recover your tariff overpayments?

Upload your ES-003 and see how much you could recover — no advance fees, no commitment.

Start your claim

Questions? support@tariffi.io