CBP refunds across all mechanisms (CAPE, drawback, protest, PSC) carry statutory interest. Rate: IRS quarterly underpayment rate (typically 7-8% annualized in 2025-2026). Accrual: from date of payment to date of refund. Calculation: simple interest, daily rate × days × principal.
This guide covers Refund Timing and Statutory Interest. Refund and recovery work spans multiple statutes and mechanisms – drawback, CAPE refunds, PSCs, protests, reliquidation under § 1520.
For SMB importers, the practical implementation depends on volume, sector, and operational structure.
Statutory interest rate source
IRS quarterly underpayment rate published quarterly. Applies to CBP refunds across most mechanisms.
Accrual period
From date duty was paid to date refund is issued. CAPE filings should claim interest explicitly.
Calculation methodology
Simple interest: principal × daily rate × days. Daily rate = annual rate / 365. Sum across quarters at applicable rates.
Typical refund timing by mechanism
PSC: 30-60 days. Protest: 60-180 days. CAPE: 60-90 days. Drawback: 6-12 months. Reliquidation under § 1520: 6+ months.
Frequently asked questions
When is this most relevant?
For SMB importers facing audit, refund opportunity, or compliance gap remediation.
What documentation matters?
CBP forms, supporting records, supplier certificates, and BOM analysis as applicable.
What is the timeline?
Simple matters 2-4 weeks; complex audits or refund filings 3-12 months.
What does this cost?
Project scope $5,000-$45,000 depending on complexity. Refund work often on contingency.
How do I begin?
Book a 15-minute scoping call. We confirm fit before any engagement.
Get started
Run a refund opportunity audit on your import history. Free preliminary estimate.