CUSTOMS COMPLIANCE | 2026-10-04

Selling, Financing, or Redirecting an IEEPA Tariff Refund: The Anti-Assignment Act, CBP Form 4811, and What Importers Should Know Before Signing

Investors are offering California importers cash today for IEEPA refunds that may take months or years to arrive. Before selling, borrowing against, or redirecting a refund, importers need to understand who CBP actually pays, what federal law says about assigning claims against the United States, and what they may be giving up.

When the Supreme Court struck down the tariffs imposed under the International Emergency Economic Powers Act on February 20, 2026, importers that paid those duties became entitled to recover them, with interest. But entitlement is not cash. Refunds depend on each entry’s liquidation status, CBP’s CA

An offer of immediate cash for a refund that may take years to arrive deserves a careful answer. The right answer depends on what the refund is actually worth, who is legally entitled to receive it, and what a federal statute written long before modern claims trading says about transferring it.

Why a Market for IEEPA Refund Claims Exists

The Supreme Court’s February 20, 2026 decision invalidating the IEEPA tariffs created one of the largest pools of potential customs refunds in history. Under the customs laws, CBP refunds excess duties deposited when an entry is liquidated or reliquidated, together with interest. In practice, however, the path from entitlement to payment is uneven. Unliquidated entries can be addressed through CBP’s administrative processes, including CAPE declarations filed in ACE. Entries that have finally liquidated are harder: CBP has taken the position that it needs a court order to reopen them, which pushes some importers toward the Court of International Trade. A nationwide refund order from that court has been appealed by the government. Every one of these steps takes time, and some carry litigation risk.

That combination — a large, legally established entitlement paired with uncertain timing — is exactly what attracts claims investors. Even before the Supreme Court ruled, distressed-debt and special-situations investors were reportedly offering to buy potential tariff refund claims at a fraction of face value, with pricing reflecting the perceived risk of each category of claim. After the decision, those offers multiplied, and lenders began offering credit facilities secured by expected refunds.

Who CBP Actually Pays

The starting point for any transaction is a simple fact: CBP deals with the importer of record. The refund belongs, as a matter of customs law, to the party that made the entry and deposited the duties. CBP does not pay the importer’s customers, its suppliers, or a purchaser of its claim simply because a private contract says so.

CBP does, however, allow an importer to direct where a refund is sent. CBP Form 4811, Special Address Notification, lets an importer designate a third party — commonly a licensed customs broker — to receive refunds on its behalf. Since CBP moved to mandatory electronic refunds on February 6, 2026, refunds are issued by ACH to bank accounts registered in ACE, and an importer can designate a Form 4811 party to receive ACH refunds. CBP treats the information an importer enters in the Notify Parties tab of the ACE Secure Data Portal as the electronic equivalent of Form 4811, and the Form 4811 itself was updated as of February 6, 2026, with earlier versions no longer accepted.

A Form 4811 designation changes where the money goes. It does not change whose claim it is. The importer remains the claimant, remains responsible for filing CAPE declarations, protests, or litigation, and remains the party CBP will deal with on every question about the entries. That distinction matters a great deal when an outside investor is involved.

The Anti-Assignment Act: What the Statute Says

The Assignment of Claims Act — often called the Anti-Assignment Act — governs transfers of claims against the federal government. It defines “assignment” broadly. Under 31 U.S.C. § 3727(a), the term covers a transfer or assignment of any part of a claim against the United States Government or of an interest in the claim, as well as the authorization to receive payment for any part of the claim.

Under § 3727(b), such an assignment may be made only after the claim is allowed, the amount of the claim is decided, and a warrant for payment has been issued. The assignment must specify the warrant, must be made freely, and must be attested by two witnesses. The person making it must bring it before an official who may acknowledge a deed, and that official must certify the assignment, stating that the official completely explained it.

The statute’s purposes are well established. It ensures that the United States deals with a single claimant, discourages trafficking in claims against the government, and preserves defenses and counterclaims the government may have against the original claimant that might not be available against an assignee.

What the Statute Does — and Does Not — Do

Read literally, § 3727 would make most pre-payment sales of an IEEPA refund ineffective as against the United States, because the claim has not yet been allowed, liquidated in amount, and reduced to a warrant. That is the core legal risk for buyers: the government is not obligated to recognize the buyer as the owner of the claim or to pay it directly.

At the same time, the Act exists to protect the government. Courts have long held that an assignment of a claim against the United States may be enforced between the private parties according to the equities, even though it does not bind the government. Courts have also recognized that certain transfers, such as those occurring by operation of law, fall outside the statute’s concerns. And commentators analyzing IEEPA refund trading have noted that the history and precedent applying the Act have limited its reach in various settings. The practical result is that refund transactions are generally structured so that the government continues to deal with the importer, while the economic benefit of the refund flows to the investor under a private contract.

Because the analysis depends heavily on how a particular agreement is drafted, the structure of the deal — not its label — determines the risk.

How Refund Transactions Are Commonly Structured

Agreements in this market generally fall into a few categories, each with different consequences for the importer:

Outright sale of the economic interest. The investor pays a discounted price now in exchange for all or a share of whatever refund is ultimately received. The importer remains the claimant before CBP and agrees to pursue the refund and turn over the proceeds.
Participation or partial sale. The investor buys a percentage of the expected refund, leaving the importer with the balance and with the upside if the refund is larger than expected.
Secured financing. A lender advances funds against the expected refund, taking a security interest in the proceeds and often requiring that refunds be routed to a controlled account. The importer keeps ownership of the claim but repays the loan, with interest and fees, from the refund.
Payment direction. The importer designates a third party to receive refunds through Form 4811 or ACE Notify Parties as part of one of the arrangements above, so that refund dollars arrive in an account the investor or lender can monitor.

Each structure carries different tax, accounting, and credit-agreement implications, and each depends on the importer continuing to do the work that produces the refund.

What Determines the Price

Purchase prices reflect the investor’s view of how much will be paid, when, and with what risk. The factors that drive that view are the same ones an importer should analyze for itself before negotiating:

Entry status. Unliquidated entries and entries still within the protest period are generally considered lower-risk than finally liquidated entries that may require litigation.
Procedural posture. Whether CAPE declarations, protests, or a Court of International Trade action have been timely filed, and whether any deadlines have already passed.
Which IEEPA program. Different IEEPA tariff measures were imposed at different times and under different orders, and investors have reportedly priced claims under different measures differently.
Interest. Refunds carry statutory interest, which increases the value of older and larger claims.
Appeal and timing risk. The pending appeal of the nationwide refund order, and the possibility of delays, weigh on the time value of the claim.
Offset and competing claims. Refunds may be subject to offset against amounts the importer owes the government, and customers or lenders may assert rights to the proceeds.

Diligence an Importer Should Do Before Selling

An importer cannot evaluate an offer without knowing what it owns. Before signing anything, the importer should:

Inventory the entries. Pull the ACE ES-003 (liquidation) and ES-022 (entry summary) reports to identify every entry carrying IEEPA duties, the amount paid, and each entry’s liquidation date.
Calculate the full claim. Include statutory interest, which can materially increase the value of the refund.
Confirm the procedural steps. Make sure CAPE declarations and protests have been filed where available, and evaluate whether litigation is needed for finally liquidated entries. A buyer will price the claim on its current posture; strengthening that posture before selling can raise the price.
Review customer contracts. If tariffs were passed through to customers — through price increases, surcharges, or delivered-duty-paid terms — those customers may assert a right to share in the refund. Selling a claim does not necessarily insulate the importer from downstream customer claims.
Review credit agreements. Existing loan agreements may restrict asset sales, require lender consent, or give the lender a security interest in receivables that could include refund proceeds.
Consult tax and accounting advisers. The treatment of a sale, a participation, or a loan can differ significantly.

Contract Terms That Deserve Careful Attention

Refund purchase and financing agreements tend to be investor-drafted. Several provisions deserve close review:

Scope. Exactly which entries, which IEEPA measures, and whether interest is included.
Cooperation covenants. What the importer must do to pursue the refund, who controls litigation and settlement decisions, and who pays legal costs.
Representations and warranties. Statements about the entries, the amounts paid, and the absence of competing claims — and the remedies if they prove inaccurate.
Clawback and true-up. What happens if the refund is smaller than expected, is offset, or must be repaid.
Payment mechanics. How refund dollars are routed, including any Form 4811 or ACE Notify Parties designation and controlled-account arrangements.
Change-of-law and appeal risk. How the parties share the risk that the appeal or further proceedings change the outcome.
Assignment compliance. How the agreement addresses § 3727, including whether the importer must remain the claimant of record and how proceeds will be transferred.

Risks for Buyers and Lenders

Investors take on their own risks. Because the government is not bound to recognize an assignment that does not satisfy § 3727, the investor’s recovery depends on the importer: its continued existence, its cooperation in pursuing the refund, and its willingness and ability to turn over proceeds. Offsets for other debts the importer owes the government can reduce the amount paid. Competing claims from customers, other creditors, or a bankruptcy estate can complicate collection. Well-drafted agreements address these risks, but they cannot eliminate them.

A Hypothetical Comparison

Consider a hypothetical importer that paid $2 million in IEEPA duties across a few hundred entries. Assume, purely for illustration, that half of the entries are unliquidated and covered by CAPE declarations, and half finally liquidated more than 180 days ago and will require a court order. The importer receives three proposals.

Outright sale. An investor offers a fixed percentage of face value now for the entire claim, including interest. The importer gets certainty and immediate cash but gives up all upside, including statutory interest that continues to accrue, and still must cooperate in pursuing the refund.
Partial participation. An investor offers to buy an interest only in the finally liquidated entries, the riskier half. The importer keeps the lower-risk unliquidated entries and their interest, and transfers the litigation-dependent portion.
Secured loan. A lender advances a percentage of the expected refund at a stated interest rate, repayable from refund proceeds. The importer keeps ownership and upside but bears repayment risk if the refund is delayed or reduced.

Which proposal is best depends on numbers that only the importer can verify: the actual duty and interest by entry, the true procedural posture of each entry, the company’s cost of capital, and its tolerance for the appeal risk. An importer that has done that work can compare the offers on equal terms — and often negotiate a better price — instead of accepting the first discount presented. The figures and structures in this example are illustrative only and do not reflect actual market pricing.

Alternatives to Selling

Selling is not the only way to manage the wait. Some importers will prefer to pursue the refund themselves and capture the full amount plus interest, particularly where entries are unliquidated or within the protest period and the main risk is timing rather than merits. Others may find that a secured loan preserves more upside than an outright sale. Still others may decide that certainty today is worth the discount. The right choice depends on the size and posture of the claim, the company’s cash needs, and its tolerance for litigation and timing risk — which is why the analysis should come before the negotiation.

What This Means for California Importers

California’s ports handle a substantial share of the nation’s containerized imports, and many California businesses paid significant IEEPA duties. Many are now receiving unsolicited offers. The most important protective step is the same regardless of whether the importer ultimately sells: preserve the claim. Missing a CAPE window, a protest deadline, or the time to sue at the Court of International Trade can reduce or eliminate what any investor will pay — and what the importer can recover on its own.

Frequently Asked Questions

Can I sell my IEEPA tariff refund claim?

Importers are entering agreements that transfer the economic benefit of expected refunds to investors, but the Anti-Assignment Act, 31 U.S.C. § 3727, restricts assignments of claims against the United States before the claim is allowed, its amount decided, and a payment warrant issued. Transactions are generally structured so the importer remains the claimant before CBP while the investor receives the proceeds under a private contract.

Who does CBP pay the refund to?

CBP deals with the importer of record. An importer can direct refunds to a third party by filing CBP Form 4811 or by entering the party in the ACE Notify Parties tab, but that designation does not change who owns the claim.

Does the Anti-Assignment Act make these deals void?

The Act protects the government; it does not require the United States to recognize a noncompliant assignment. Courts have held that such assignments can be enforced between the private parties according to the equities. The specific structure of the agreement determines the risk.

How are refunds paid now?

CBP moved to mandatory electronic refunds on February 6, 2026. Refunds are issued by ACH to bank accounts registered in ACE, including accounts of a designated Form 4811 party.

What should I do before accepting an offer?

Inventory your entries using the ES-003 and ES-022 reports, calculate the refund including interest, confirm that CAPE declarations, protests, or litigation are timely, review customer and lender contracts, and obtain tax and legal advice on the proposed structure.

If I sell, can my customers still claim part of the refund?

Possibly. If tariffs were passed through to customers, they may assert rights to the refund under their contracts, and selling the claim does not necessarily eliminate that exposure.

Related Customs & Trade Guides

Talk to a Customs Attorney Before You Sell a Refund

An IEEPA refund is a valuable asset, and offers to buy or finance it should be evaluated carefully. Trembach Law Firm helps California importers value their refunds, preserve their claims, and review proposed transactions. Call (213) 645-2246.

Contact Trembach Law Firm at (818) 514-7680 for a confidential consultation.

Trembach Law Firm | 27001 Agoura Road, Suite 350, Calabasas, CA 91301