If your Canadian business shipped goods into the United States between February 2025 and February 2026 and paid duties on those shipments, you may be entitled to a refund — and the window to claim it is open now. Here’s what netParcel customers need to know.
What Happened?
In early 2025, the U.S. government imposed emergency tariffs under the International Emergency Economic Powers Act (IEEPA) on goods imported from Canada and many other countries. For Canadian exporters, non-CUSMA-compliant goods were typically hit with tariffs of around 35%. These costs were absorbed by thousands of small Canadian businesses shipping goods across the border.
On February 20, 2026, the U.S. Supreme Court struck down those IEEPA tariffs as unlawful, ruling that IEEPA does not authorize the President to impose broad import duties. The Court of International Trade then ordered U.S. Customs and Border Protection (CBP) to refund all IEEPA duties collected — an estimated $166 billion owed to approximately 330,000 importers.
Please note that as of February 24th, 2026, Section 122 of the Trade Act of 1974 is in effect, and will remain in effect through July 24th, 2026, unless extended or replaced. The 10% tariff in effect under Section 122 is independent of IEEPA and not eligible for reimbursement at this time.
Am I Eligible?
According to the Canadian Federation of Independent Business (CFIB), approximately one-third of small Canadian exporters faced tariffs on goods that did not qualify for the CUSMA exemption. Of those, roughly one in four were the Importer of Record and should qualify for a refund.
| Criteria | Details |
|---|---|
| Shipment period | February 4, 2025 – February 23, 2026 |
| Goods affected | Non-CUSMA compliant goods that were subject to IEEPA duties |
| Goods NOT covered | Steel, aluminum, cars, softwood lumber, furniture — sectoral tariffs remain in place |
| Who files | The Importer of Record (IOR) or their licensed U.S. customs broker |
| Entry status (Phase 1) | Unliquidated entries, or those liquidated within the last 80 days |
What’s the Refund Process?
We are actively working with all of our carrier partners to determine an efficient process to execute refunds. Details will be presented as soon as possible.
Generally, How Are Carriers Handling This?
Major carriers are stepping up to support customers through the refund process. UPS, FedEx, and DHL have each announced they will proactively file refund claims on behalf of customers for any shipments where the carrier was the Importer of Record — meaning those customers won’t need to take any action themselves. This mirrors the kind of direct, proactive communication carriers have been using throughout 2025 and 2026 to keep shippers informed,
What Should netParcel Customers Do Right Now?
- Review your cross-border shipments from February 2025 to February 2026 and identify whether your goods were CUSMA-compliant, and keep the information handy.
- Engage our team! Once the refund process has been confirmed by the carriers, we will proceed, execute refunds and provide updates along the way.
This is a complex and fast-moving situation. If you’re unsure how these changes affect your shipping costs or cross-border strategy, the netParcel team is here to help. Reach out to our support team for guidance.
Thank you,
netParcel Management
This post is for informational purposes only and does not constitute legal or customs advice. Please consult a licensed customs broker or trade attorney regarding your specific situation. Information is based on CBP guidance and publicly available sources, current as of April 2026.
