The Purchase Price of IEEPA Tariff Refund Claims has Increased up to 85% of the Claim Amount

Convert IEEPA Tariff Claims to Cash on an Expedited Basis

U.S. Customs and Border Protection is rolling out a system to process refunds (CAPE), and some trade experts believe that certain importers could begin receiving refunds within the next six months. However, there remains significant uncertainty around timing, and many industry participants believe that a large portion of claims could still take years to fully resolve.

This divergence is driven by several factors, including:

The complexity and scale of processing millions of entries
The possibility that certain categories of claims may be prioritized over others, delaying recovery for more complex or lower-volume importers
The need for new administrative procedures, as IEEPA does not clearly define a refund mechanism
The potential for case-by-case eligibility determinations
Ongoing legal and procedural developments, including possible appeals by the Trump Administration and implementation challenges
Liquidation Status - Whether entries have already been liquidated, which in many cases may require formal protests or litigation to reopen and recover duties
The likelihood of inconsistent treatment across ports (port-by-port) or entry types as CBP implements new processes in phases
Documentation gaps and data reconciliation issues, particularly for older entries or those filed across multiple brokers
The absence of clear guidance on how interest on refunds will be calculated and paid, which could lead to further disputes
Capacity constraints within CBP and the potential for processing backlogs as refund volumes scale
Continued legal challenges around the scope of eligibility, including disputes over classifications, valuation, or origin that could delay specific claims

As a result, while some importers may receive refunds within six months, others, particularly those with more complex or previously liquidated entries, could face a multi-year recovery timeline.

To address this uncertainty, financial institutions and hedge funds are actively purchasing IEEPA tariff refund claims at a discount. Current buy rates are as high as 85% of the expected refund value, depending on claim size, credit quality of the importer and documentation quality as these claims are not directly assignable.

AES works with importers with claims starting at $250,000, with no maximum limit. Since entering this market five months ago, AES has facilitated the monetization of approximately $20 million in claims across industries including food, seasonal goods, apparel, and home products.

The Funds AES works with are able to complete transactions in approximately 2–3 weeks, depending on the completeness and quality of documentation.

For more information on how this process works see below.

How the Process of Selling an IEEPA Tariff Claim Works

Model is:

As an example, Company X has paid ($10 Million) in tariffs since April 7, 2025.
Company X wants to de-risk prior to determination and finalization of the IEEPA tariff Refund Process.
Company X sells (50%, 100%, or some other percentage) of its tariff ‘claim’ to Buyer A in the form of a participation.
The Trade is nonrecourse to Company X as to the outcome of the Refund Process; but recourse to Company X only if the amount / validity of the claim is proven to be false, or too high.

Process for Selling IEEPA Tariff Claims:

As an example, Company X has paid ($10 Million) in tariffs since April 7, 2025.
Company X agrees to “sell” its tariff claim to Buyer for 85% of the claim amount, i.e. $8.5 million.
Buyer sends Seller a Confirm, and then ultimately a Claim Sale and Purchase Agreement which will govern the transaction.
IMPORTANT – Company X retains its status as the “Plaintiff” / “Claimant” since these tariff claims are not transferable.
Buyer might ask Company X to commence litigation for the return of the IEEPA tariffs paid. The rationale for this is that it is possible that only those parties who have commenced actual litigation are entitled to refunds. Thus, Company X will need to commence litigation in order to receive their refund.
Buyer will continue to monitor the situation and inform Company X of developments.
If and when the refund is received on the claim, Company X will receive the refund and forward to the Buyer.

Using an IEEPA Tariff Claim as Collateral for a Loan

In lieu of selling an IEEPA Tariff Claim at a discount, it is possible to use this claim as collateral for a term loan. This term loan would be on a “recourse: basis to the borrower. As the minimum loan amount for a Fund to consider is $10 million, the claim must be at least $20 million or higher to collateralize a loan of this amount.
The potential loan amount could be up to approximately 50% plus of the total IEEPA claim amount.
The interest rate would be in the low to mid-teens and be “PIK” (Payment in Kind) whereby the interest is added to the loan balance on a monthly basis in lieu of cash payments.

Important Points Regarding the Sale of a Tariff Claim

Company X (as seller of the Claim) must be a financially healthy enough counterparty for Buyer A to enter into what could be a 2-to-5-year process of obtaining the refund.
Legal fees are split going forward based on risk percentage. If Company X sells 100% today, Buyer A will pay 100% of legal costs today. If Company sells 50% today, Company and Buyer will share the legal costs equally.
Buyers are currently paying up to 85% to companies seeking to sell their IEEPA tariff claims. However, this is an evolving market and these percentages can either increase or decrease depending on the markets’ reaction to the Trump Administration’s expected obstructionism and the unresolved Court of International Trade’s procedural issues.
Prior to the Supreme Court decision, buyers were purchasing tariff claims at an average of 22% due to the high risks involved.
We will be monitoring on a daily basis the rates at which Buyers are purchasing IEEPA claims and we will update our website accordingly. Feel free to email us to ascertain what the rate is on any particular day.
There would likely be an administrative process instituted such that companies that have paid these IEEPA tariffs will need to file special claims and wait to get refunded by the government. The process of receiving the refund payment from the government could take up to 2 to 5 years.
Asset Enhancement Solutions, LLC also assisted many businesses expedite funding of their ERC (Employee Retention Tax Credit) within 6 to 8 weeks instead of waiting 12 to 36 months to receive funds from the IRS. AES facilitated the sale of $50 million of ERC claims over the past few years with individual claims ranging from $1 million to $7 million.

About Asset Enhancement Solutions, LLC

Asset Enhancement Solutions, LLC ("AES"), is a financial advisory firm that provides both Capital Raising and Consulting Services to companies considering important transactions such as debt or equity financing, selling a company or acquiring a company. We specialize in arranging debt and equity financing for companies with challenges. These include unfavorable challenges such as operational, legal, tax, financial or liquidity issues or positive challenges such as opportunities for growth, acquisition, and long-term success. AES works with middle market companies, small businesses, and public companies.

We never shy away from adversity and difficult challenges; we embrace and thrive on it. We have the experience and expertise needed to find options and creative financial solutions for any size business. The firm was founded on the principle of experienced operating executives providing valued-added services to clients at a reasonable fee structure.

AES added the processing of PPP Loans to its services in April 2020. As an Agent for multiple PPP lenders, AES processed over 1,500 Paycheck Protection Program (PPP) loans totaling $150,000,000.

Seeing that some businesses were waiting 12 months or longer to receive their ERC Refunds from the IRS, in March of 2022 AES teamed up with a few lenders and hedge funds that would either advance funds against ERC Refund Claims or purchase ERC Claims at a discount. This financing solution proved to be a lifeline for many companies. AES monetized ERC Claims totaling $50 million.

Please reach out to us to discuss how we can help you overcome your challenges and grow your business.

We are here to help. Do not hesitate to contact us at any time:

Phone: 516-767-0100
After Business Hours please leave a voice message and your message will be forwarded to us 24/7.
Email: info@assetenhancement.com

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