by Ariful | Oct 6, 2026 | Australia Updates
TITLE: ATO and Tax Changes: Foreign Resident CGT, Software Royalties, Card Payments, and Return Timing
Act early on large foreign resident transactions
The new foreign resident capital gains tax notification rules started on 1 October 2026.
They apply where a foreign vendor provides a non-indirect Australian real property interest (non-IARPI) declaration and the transaction, together with any related transactions, has a value of $50 million or more.
The vendor must notify the ATO using the approved form:
- At least 28 days before settlement where the settlement period is more than 31 days.
- As soon as practicable after the transaction begins where the settlement period is 31 days or less.
- The vendor must also notify the purchaser in writing before settlement that the ATO notification has been completed.
This requirement is important because the purchaser cannot rely on the non-IARPI declaration if the notification steps are not completed correctly. The purchaser may then need to withhold 15% of the purchase price.
On a $50 million transaction, that could mean withholding exposure of up to $7.5 million.
The rules may also apply to contracts signed before 1 October 2026 where settlement occurs on or after that date. Review the settlement timetable rather than relying only on the contract signing date.
The approved ATO form is detailed. It may require formal valuations of taxable Australian real property and non-taxable Australian real property assets. Build this work into the transaction timetable early.
Read the ATO guidance on strengthening the foreign resident CGT regime and its information on foreign resident capital gains withholding vendor declarations.
Map every cross-border software payment
The ATO issued final Taxation Ruling TR 2026/2 on 4 September 2026. The ruling explains when payments under software intermediation arrangements can be treated as royalties for Australian income tax and royalty withholding tax purposes.
Do not assume that the contract label determines the outcome.
The ATO’s position can apply even where:
- The agreement is called a distribution agreement.
- The contract describes payments as royalty-free.
- The intermediary only issues licence keys.
- The intermediary only provides download instructions.
- The Australian entity operates as a buy-sell distributor.
- The arrangement is described commercially as a subscription, service, or platform fee.
The substance of the rights matters. Payments may be treated as royalties where the arrangement involves rights connected with software copyright or intellectual property, including reproduction, communication, adaptation, sublicensing, or similar rights.
For buy-sell distributors, royalty withholding tax may apply to gross payments, not simply to the distributor’s profit margin.
The ruling applies retrospectively to payments made before and after its issue date, subject to limited transitional circumstances. Consultation on the accompanying draft Practical Compliance Guideline PCG 2026/D4 closed on 2 October 2026. The ATO has indicated that the 75% residual threshold will be confirmed after the consultation process.
Complete the following review now:
- List every payment from your Australian entity to offshore software, technology, platform, and IP suppliers.
- Identify the legal entity receiving each payment.
- Compare the commercial description with the actual rights granted.
- Check whether the arrangement involves distribution, hosting, copying, adaptation, sublicensing, or licence-key access.
- Review whether withholding tax has been considered and documented.
- Quantify possible historical exposure.
- Keep a written record of your position and supporting documents.
You can review TR 2026/2 on the ATO Legal Database and the ATO’s software royalties guidance.
Replace credit card payment processes before 30 November
The ATO will stop accepting direct credit card payments for tax bills after 30 November 2026.
This affects payments such as:
- Business activity statements.
- GST liabilities.
- PAYG instalments.
- Income tax.
- Other ATO account debts.
- Payment plans linked to a credit card.
Update your payment method before the next instalment falls due. Available alternatives include BPAY, direct debit from a bank account or debit card, electronic funds transfer, and other payment channels listed by the ATO.
Do not leave this until the payment date. A failed instalment may push a payment plan into arrears or default.
Review your accounting software, finance team instructions, payment approvals, and recurring payment arrangements. Make sure the payment reference number is used correctly so the ATO allocates the payment to the right account.
See the ATO’s announcement about ending credit card payments and its online payment options.
Do not rush tax returns before the data is complete
The ATO has reported that more than 595,000 tax returns have been adjusted through its data-matching processes.
Taxpayers who lodge very early are around twice as likely to have their returns adjusted. Pre-fill information may not yet include all income, interest, dividends, employment information, government payments, or other third-party data.
Before lodging, check:
- ATO pre-fill information.
- Bank interest and dividend records.
- PAYG payment information.
- Digital platform and marketplace income.
- Foreign income and withholding.
- Business income and deductions.
- Private-use adjustments.
- Motor vehicle and home-office records.
- Crypto and investment transactions.
For ordinary self-lodgers, 31 October 2026 falls on a Saturday. The next business day, Monday 2 November, may apply under the usual weekend rule for ordinary self-lodgment.
However, tax agents should not rely on that date for every situation. The ATO has stated that new clients must be added and overdue prior-year returns must be lodged by 31 October 2026 for the agent to access the later lodgment program dates.
by Ariful | Oct 6, 2026 | US Updates
TITLE: Illinois Remote Retailer Tax Amnesty Program: Key Dates, Rates, and Eligibility
Illinois Remote Retailer Tax Amnesty Program: What Out-of-State Sellers Need to Know
If you sell tangible personal property to Illinois customers from outside the state, you may have a limited opportunity to settle eligible Retailers’ Occupation Tax liabilities without related penalties and interest.
The Illinois Remote Retailer Tax Amnesty Program closes on 31 October 2026. It applies to qualifying out-of-state remote retailers, including international sellers based in the UK, European Union, Canada and Australia, as well as US LLC owners without an Illinois physical presence.
You must act quickly. Registration, MyTax Illinois activation, record preparation, application filing and payment all need to be completed before the deadline.
Check whether you qualify before the deadline
The programme runs from 1 August 2026 through 31 October 2026 under 35 ILCS 120/2-13, as added by P.A. 104-0006.
A qualifying remote retailer is a business that sells tangible personal property to customers in Illinois but has no physical presence in Illinois.
The amnesty covers:
- Sales made from 1 January 2021 through 30 June 2026.
- Illinois Retailers’ Occupation Tax, or ROT.
- ROT on items that must be titled or registered with a state agency.
- All locally imposed retailers’ occupation taxes administered by the Illinois Department of Revenue, or IDOR.
- The Chicago Home Rule Municipal Soft Drink ROT.
You must also meet the relevant Illinois sales threshold.
For calendar quarters ending after 1 January 2021 and on or before 31 December 2025, you qualify if either condition applied during the preceding four calendar quarters:
- At least $100,000 in annual gross receipts from sales of tangible personal property to Illinois purchasers; or
- At least 200 separate transactions with Illinois purchasers.
For calendar quarters beginning on or after 1 January 2026, only the $100,000 annual gross receipts test applies. Illinois removed the 200-transaction threshold from 1 January 2026.
Use the simplified rates to resolve historic gaps
The amnesty application uses simplified tax rates:
- 9% for general merchandise.
- 1.75% for items normally subject to the 1% State rate.
The 1.75% rate includes food for off-premises consumption, prescription and nonprescription medicines, drugs and medical appliances.
Keep records that identify sales qualifying for the 1.75% rate. Without those records, the sales are presumed to be subject to the 9% rate.
There is another important rule. If you collected tax at a rate higher than the simplified rate, you must report and pay the greater amount collected.
The benefit is significant. Qualifying participants can pay eligible tax liabilities with related penalties and interest waived. However, the programme does not remove every possible charge. The following are excluded from the waiver:
- Lien filing and lien release fees.
- Books and records penalties.
- Bad check penalties.
- Collection agency service fees.
- Penalties and interest on liabilities fully paid before the amnesty period.
- Penalties and interest on liabilities that do not qualify for amnesty.
Register with IDOR and activate MyTax Illinois now
You must be registered with IDOR and have an active MyTax Illinois logon before applying.
Registration processing usually takes one to two business days. Do not leave this step until 31 October.
The official Illinois Tax Amnesty page provides the registration and activation process. After registration, create or activate your MyTax Illinois account and confirm that you can access your Sales and Use Tax account.
To file the amnesty application:
- Log in to MyTax Illinois.
- Select your Sales/Use Tax account.
- Choose View more account options.
- Select Remote Retailer Amnesty Application.
- Enter the eligible periods and sales information.
- Submit the application electronically.
- Pay in full or request an approved repayment plan by 31 October 2026.
Paper returns do not qualify for amnesty relief. Once IDOR processes the application, the liability cannot be edited.
Compare the 9% rate with your actual Illinois exposure
The simplified rate may be easier than reconstructing every destination-based local rate. But you should still compare the options using your records.
Illinois has many local taxing jurisdictions. Your decision should consider:
- Where your Illinois customers were located.
- Whether your products were general merchandise or 1.75% qualifying items.
- Whether you collected tax at a higher rate.
- Whether your records can support the correct destination and product classification.
- Whether the simplified rate produces a lower or higher liability than your actual applicable local rates.
Do not automatically assume that 9% is the lowest result. Calculate the position before filing. The application is final once processed.
Example: UK Shopify seller with no Illinois presence
Imagine a UK-owned Shopify store selling directly to Illinois customers. It has no US inventory, staff or offices.
The store may have crossed the $100,000 Illinois threshold. It may also have collected only the state-level rate and never tracked the 1,200-plus local rates connected with Illinois customer destinations.
That is the type of historic compliance gap the amnesty is designed to address. The seller can assess the covered periods, apply the 9% simplified rate for general merchandise where appropriate, and seek waiver of related penalties and interest.
The seller must still provide accurate information and pay the resulting liability.
Example: Australian or Canadian seller with limited exposure
An Australian or Canadian brand may have sold off-marketplace into Illinois during only two of the covered years.
The business does not necessarily need to reopen every year from 2021. It can claim amnesty for the eligible periods it chooses to include, provided the relevant sales and liability qualify.
This makes period-by-period sales analysis essential.
Example: Seller holding Illinois inventory
A seller with Illinois inventory is different.
For example, a business holding FBA stock in an Illinois fulfilment centre is not a remote retailer for amnesty purposes. It should not treat this programme as the solution to its Illinois sales tax position.
Review your physical presence and inventory records separately before applying.
Choose payment or an approved repayment plan
You must pay the liability in full by 31 October 2026, or request and receive approval for a repayment plan by that date.
Available repayment terms are:
- 6 months.
- 12 months.
- 18 months.
- 24 months.
A repayment plan requires a down payment. Automatic monthly withdrawals begin on 1 December 2026. Interest accrues on the outstanding balance from 1 November 2026.
Complete the plan as agreed. If you do not complete it, the penalties and interest are not waived and the liability is recalculated without the simplified rate.
Keep filing after the amnesty
Amnesty does not replace ongoing Illinois registration and filing duties.
Beginning with returns for the July 2026 period, you must file and pay Illinois tax as required. Going forward, Illinois will continue to require out-of-state sellers to collect and remit tax on taxable sales into the state once the economic nexus threshold is met.
Do not fall back into non-compliance after the amnesty period ends.
Decide before 31 October 2026
The Illinois Remote Retailer Tax Amnesty Program is a defined, dated opportunity. It can reduce historic exposure for remote retailers that qualify, but it is not automatic and it does not fit every seller.
Businesses that moved quickly through the August opening window will have the most flexibility. Those leaving it late risk missing registration, account activation or payment deadlines that cannot be extended.
If you sell into Illinois without a physical presence, assess your position now. Confirm your nexus status, identify the covered periods, review product classification and destination data, then decide whether the simplified rates work in your favour.
The deadline is 31 October 2026. After that, the penalty and interest waiver closes.
by Ariful | Oct 5, 2026 | E-Commerce
TITLE: Ecommerce Tax and VAT Deadlines: Week Commencing 5 October 2026
For the week commencing 5 October 2026, your priority is deadline control. UK sellers must address Self Assessment registration and VAT filing immediately, while Amazon sellers need to model Q4 fulfilment costs before festive fees begin. Cross-border businesses should also review US, EU, Canadian and Australian filing obligations.
1. Register today to avoid a personal tax compliance failure
Complete Self Assessment registration by 5 October 2026 if you need to file a 2025/26 return and have not registered before.
This may apply to:
- Company directors with untaxed income outside the company.
- Individuals receiving dividends, side-business income or other taxable income.
- Online sellers whose gross trading income exceeded £1,000 during 2025/26.
The £1,000 test uses gross income before stock, advertising, postage, platform fees and other costs. The obligation belongs to you personally, not automatically to your Limited Company.
Do not confuse company accounting with personal tax reporting. Keep company transactions separate from any sole-trader activity. This will reduce the risk of omitted income and help you prepare an accurate return later.
Read the latest guidance through HMRC’s Self Assessment service.
2. File your UK VAT return before the 7 October deadline
A UK VAT return for the quarter ending 31 August 2026 is due by 7 October 2026. You must submit the return and ensure cleared payment reaches HMRC by the same date.
The return must be filed through Making Tax Digital-compatible software. Before submission, complete this ecommerce reconciliation checklist:
- Match Amazon settlement reports to your bookkeeping records.
- Reconcile Shopify payouts against individual orders.
- Separate gross sales, refunds, chargebacks, discounts and payment fees.
- Review marketplace-collected VAT and prevent double counting.
- Confirm the customer’s location and VAT treatment.
- Check stock location and fulfilment country, particularly for FBA inventory.
- Investigate differences between order date, dispatch date and payout date.
- Post credit notes and refunds in the correct VAT period.
- Reconcile foreign currency settlements using consistent exchange-rate records.
The UK VAT registration threshold remains £90,000 of rolling 12-month taxable turnover, with the 30-day forward-look test also applying. The deregistration threshold remains £88,000.
Good ecommerce bookkeeping UK processes are essential here. A payout is not the same as a sale, and a settlement report is not a VAT return.
3. Prepare now for the next MTD expansion
HMRC announced today that Making Tax Digital for Income Tax will extend to sole traders and landlords with qualifying income over £30,000 from 6 April 2027. This will bring approximately 1,077,000 more people into the system.
Sign-up is open now. Affected individuals will need to:
- Keep digital records.
- Use HMRC-recognised software.
- Send quarterly updates.
- Include gross self-employment and property income before allowances.
The threshold will reduce again to £20,000 from April 2028. Individuals with qualifying income above £50,000 have already entered the system, and their second quarterly update is due 7 November 2026.
Limited companies are not within MTD for Income Tax. However, if a company director also sells personally as a sole trader, those records must remain separate. Early preparation will make future quarterly reporting less disruptive.
4. Protect Q4 Amazon margins before peak fees start
Amazon’s festive peak fulfilment fee begins 15 October 2026 and runs until 14 January 2027. For eligible UK FBA orders, the average surcharge is approximately:
- £0.12 per small or standard parcel item.
- £0.07 per large or extra-large envelope item.
The charge applies to local UK FBA and Remote Fulfilment from the EU to the UK. Oversize, Low-Price FBA and apparel products are excluded. The 1.5% fuel and logistics surcharge continues to apply year-round, while storage fees for many categories roughly double from October to December.
Key Q4 dates include:
- 15 October: festive peak fee begins.
- 28 October: recommended UK inventory arrival for Black Friday Week.
- 18 November: Black Friday Week deal submissions close.
- 14 January 2027: peak fee ends.
Use Amazon’s Revenue Calculator and FBA Fee Preview report to model:
- Referral fees.
- Standard and peak FBA fees.
- Fuel surcharge.
- Storage and removal costs.
- Promotion fees.
- VAT.
- Settlement timing.
Promotion fees include £12 upfront per promotion plus 0.75% of promotional sales, with the variable element capped at £600.
A profitable sales forecast is not enough. Your Amazon FBA accounting UK model must include settlement deductions, fulfilment charges, storage and promotional costs. Otherwise, your forecast may show sales growth while cash margins deteriorate.
5. Fix Amazon FBM delivery performance before 30 October
From 30 September 2026, Amazon.co.uk FBM sellers must maintain a 90% business-hour delivery rate for Amazon Business customers. From 30 October, Amazon may deactivate listings for business customers where the rate is not met.
Review:
- Promised handling time versus actual dispatch time.
- Carrier performance by SKU.
- Inventory accuracy.
- Business-hour data in Seller Central.
- At-risk SKUs.
- Commercial-address delivery handling.
Check whether Automated Handling Time is active. It may apply where configured handling time differs from actual performance or has been exceeded for more than 30 days.
Correcting the data now can protect listings during the highest-value selling period.
6. Record UK EPR charges accurately
Amazon’s UK EPR Pay on Behalf service fee is now charged directly to the selling account within 30 days of enrolment for each reporting period. It is no longer taken from an account-level reserve.
Amazon invoices the following separately:
- The annual service fee, currently £20 per applicable category.
- The eco-contribution fee.
Sellers with a valid packaging registration number are not charged the service fee. Post the eco-contribution and service fee to separate accounts in your bookkeeping. This gives you a clearer view of regulatory costs and supports accurate expense reporting.
7. Keep VAT records while HMRC reviews marketplace rules
HMRC’s marketplace VAT consultation closed on 18 August 2026. There is no law change yet, so do not treat the consultation as legislation.
Continue retaining records of:
- Sales and refunds.
- Customer type.
- VAT treatment.
- Stock location.
- Marketplace and direct sales.
- Dispatch and delivery dates.
- VAT collected by the marketplace.
by Ariful | Oct 5, 2026 | Australia Updates
TITLE: ATO Deadlines: Credit Card Ban, GIC Remissions and $1,000 Deduction
Key dates for Australian businesses
- 9 October 2026: Consultation closes on LCR 2026/D5, covering the proposed standard deduction of up to $1,000 for eligible work-related expenses from 2026–27.
- 16 October 2026: Consultation closes on TR 2026/D1 covering crypto asset airdrops, and GSTR 2012/3DC covering the GST treatment of retirement village care services and accommodation.
- 31 October 2026: ATO deadline for tax agents to add new clients to their lodgment program lists and lodge overdue prior-year returns where relevant.
- 31 October 2026: Formal self-lodger tax return deadline. Because the date falls on a Saturday, Monday, 2 November 2026 may apply under the general weekend rule for ordinary self-lodgment.
- 30 November 2026: The ATO’s credit card payment ban is scheduled to begin. Businesses should transition to BPAY, direct debit or another available payment method.
Australian businesses face several important tax administration deadlines this week. The ATO is changing how it handles phone-based general interest charge remissions, public consultation on the proposed $1,000 standard deduction closes on 9 October, and technology businesses face increased scrutiny of software royalties, transfer pricing and offshore profit allocation.
The ATO has also confirmed that credit card payments will no longer be accepted after 30 November 2026. This matters for Australian e-commerce sellers, digital businesses and SMEs managing GST, BAS payments and tax debts.
Here is what you need to know as at Monday, 5 October 2026.
1. ATO credit card payment ban requires a payment process change
The ATO Commissioner has defended the decision to stop accepting credit card payments from 30 November 2026. The change follows the removal of card surcharges for Commonwealth agencies and the ATO’s concern about continuing merchant processing costs.
The ATO is encouraging taxpayers to use alternatives such as:
- BPAY
- Direct debit
- Electronic funds transfer
- Other available debit or account-based payment options
This is relevant if you regularly pay BAS liabilities, GST, PAYG instalments, income tax or other ATO debts by credit card. It may also affect businesses that use credit cards to manage short-term cash flow or collect rewards points.
Take action before 30 November
Update your internal payment checklist now. Record the following:
- Which ATO obligations are paid by credit card.
- The usual payment dates for BAS, GST, PAYG and income tax.
- Which bank account will be used after the change.
- Who is authorised to approve payments.
- Whether direct debit or BPAY details need to be set up in advance.
Do not wait until the next BAS deadline. Updating your process early will reduce the risk of a missed payment, late payment interest or an avoidable cash-flow disruption.
2. Phone-based GIC remissions are now limited
The ATO has capped the level of general interest charge remission that can be granted over the phone. Larger or more complex requests will be escalated to specialist officers rather than resolved during a standard call.
A general interest charge can arise when an ATO liability remains unpaid after its due date. It may continue to accrue daily while the debt remains outstanding. A remission is not automatic. You must explain the circumstances and provide relevant evidence.
Prepare a complete remission record
If your business needs to request a remission, prepare the file before contacting the ATO. Include:
- The original liability and due date.
- The reason the payment or lodgment was delayed.
- Details of any system failure, illness, disaster or ATO-related delay.
- Evidence supporting the circumstances.
- The date the error was corrected.
- Proof of payment or details of an agreed payment arrangement.
- A clear explanation of why the requested remission is reasonable.
Larger requests should be prepared in writing because they may be referred to a specialist team. Keep paying undisputed amounts where possible. Interest can continue to accrue on unpaid balances, including debts under a payment arrangement.
For Australian businesses, accurate bookkeeping and timely BAS preparation remain the best way to prevent avoidable GIC exposure.
3. $1,000 standard deduction consultation closes on 9 October
The ATO’s public consultation on LCR 2026/D5 closes this Friday, 9 October 2026. The draft ruling explains how the proposed standard deduction for work-related expenses would operate from the 2026–27 income year.
Under the proposal, eligible individuals with assessable labour income may receive a standard deduction of up to $1,000. The deduction would apply automatically and would not require the taxpayer to have incurred or substantiated specific work-related expenses.
However, this is primarily an individual tax return measure. It is not a general $1,000 deduction for companies, e-commerce stores or business operating costs.
Businesses should continue to retain records for ordinary expenses, including:
- Software subscriptions.
- Advertising and marketplace fees.
- Freight and fulfilment costs.
- Professional services.
- Payment processing charges.
- Inventory and cost of goods sold.
- Foreign exchange costs.
- Business travel and contractor payments.
The proposed standard deduction first applies to the 2026–27 tax return. It does not change the record-keeping requirements for the 2025–26 return.
If you are an Australian employer, director or business owner with employment income as well as business income, separate the individual deduction rules from the company’s bookkeeping records. This will help prevent personal and business expenses from being incorrectly combined.
4. Further ATO consultations close on 16 October
Two other consultations remain open until 16 October 2026:
- TR 2026/D1: Tax treatment of crypto asset airdrops.
- GSTR 2012/3DC: GST treatment of retirement village care services and accommodation.
These issues will be most relevant to businesses operating in digital assets, aged care or retirement village services. However, digital businesses holding or receiving crypto assets should monitor the airdrop ruling and maintain complete records of:
- The date assets were received.
- The quantity and market value at receipt.
- The wallet or exchange used.
- Any services connected with the airdrop.
- Disposal dates and proceeds.
- Transaction fees and blockchain records.
Draft rulings are not final law. Nevertheless, keeping records now will make it easier to apply the final position when published.
5. ATO scrutiny increases for AI, cloud and data-centre groups
The ATO is increasing its focus on
by Ariful | Oct 5, 2026 | US Updates
TITLE: CAPE Phase 3 IEEPA Refunds: What US Importers Must Do Before 6 October 2026
U.S. Customs and Border Protection (CBP) will deploy CAPE Phase 3 inside the ACE Portal on 6 October 2026. The new phase targets IEEPA duty refunds for finally liquidated entries covered by a court-ordered reliquidation.
This update matters if you are an international seller, a non-US founder, or one of the many US importers of record supporting sales through Amazon FBA, Shopify, eBay, Etsy, or another channel.
Check your eligibility before 6 October
CAPE Phase 3 is narrower than the earlier deployments. It applies to:
- Plaintiffs in pending Court of International Trade cases seeking IEEPA tariff refunds.
- Finally liquidated entries covered by a court order requiring CBP to reliquidate those entries.
- Importers of record who submitted a valid IOR number to CBP by 30 July 2026.
Eligible plaintiffs who met the 30 July deadline may begin filing CAPE Declarations from 6 October.
If you submitted your IOR number after 30 July, CBP will issue separate filing instructions on a rolling biweekly basis. Do not assume that you can file immediately on 6 October.
The CBP IEEPA duty refunds page remains the main official source for CAPE access, refund processing, ACE requirements, and reporting.
Understand why these refunds are available
On 20 February 2026, the Supreme Court decided Learning Resources, Inc. v. Trump, No. 24-1287. The Court held that IEEPA does not authorise the President to impose tariffs.
The ruling covered the 2025 “fentanyl” tariffs affecting Canada, Mexico, and China, as well as the worldwide “reciprocal” tariffs. The resulting IEEPA duties are refundable with interest to the importer of record, subject to the applicable process.
Read the Supreme Court opinion for the full legal decision.
CBP has introduced CAPE in stages:
- Phase 1, 20 April 2026: Covered most eligible entries where IEEPA duties were paid, including unliquidated entries and entries within 80 days of liquidation.
- Phase 2, 29 June 2026: Covered entries flagged for reconciliation, including entry types 01, 02, and 06, where the type 09 reconciliation entry was not yet on file.
- Phase 3, 6 October 2026: Covers qualifying finally liquidated entries subject to court-ordered reliquidation.
This phased approach means you must identify the correct route for each entry. Do not place the same entry into multiple processes.
Separate refundable duties from duties that remain payable
Not every tariff on an entry is refundable through CAPE.
The process does not refund:
- Section 232 national-security tariffs on steel, aluminium, and derivatives.
- Section 301 trade-remedy tariffs, including the 2026 forced-labour Section 301 duties.
- Antidumping and countervailing duties.
One shipment can contain both refundable IEEPA duties and non-refundable Section 301 or Section 232 duties. Your records must separate these amounts clearly.
This distinction is important for ecommerce businesses. A refund calculation based only on the total duty paid may be wrong. Review entry lines, HTS classifications, duty types, and the original importer records before preparing a declaration.
File the CAPE Declaration correctly
CAPE filings follow strict operational rules.
Use the right filer
Only one of the following can file a CAPE Declaration:
- The importer of record.
- The licensed customs broker that filed the relevant entries.
An attorney cannot file a CAPE Declaration merely because they represent the importer. Legal counsel may support the process, but the actual submission must come from the IOR or the eligible customs broker.
The filer must also be directly associated with the entries through the three-digit prefix of the ACE filer code.
Upload a CSV through ACE
A CAPE Declaration is a CSV file containing entry numbers. No other information is required in the CSV.
Follow these requirements:
- Upload the file through the CAPE tab in the ACE Portal.
- Do not file the declaration through ABI.
- Include no more than 9,999 entries per declaration.
- Submit a new declaration for additional entries.
- Do not include an entry on more than one accepted declaration.
- Check the entry list carefully before submission.
A declaration cannot be amended or cancelled once filed. A simple duplicate or incorrect entry can therefore create avoidable reconciliation work.
Confirm your ACE and ACH details now
Refunds are paid by ACH only. CBP will not issue these CAPE refunds by paper cheque.
Before filing, confirm that:
- Your importer or broker has an active ACE Portal account.
- The correct importer sub-account is available.
- Current refund bank details are recorded in ACE.
- The bank account belongs to the verified party entitled to receive the refund.
- Your Form 5106 and importer information are accurate.
You cannot receive a CAPE refund without the required ACE Portal and ACH information. If the bank details are missing or outdated, CBP may hold the refund until the information is corrected.
Valid refunds are generally issued within 60–90 days after CAPE Declaration acceptance. Once an entry is liquidated or reliquidated, the payment will usually reach the designated account within 3–5 weeks.
Interest is included under 19 U.S.C. § 1505. The final amount may differ from your estimate because CBP recalculates the entry and applies the applicable netting rules.
Track every declaration through ACE Reports
Do not rely on informal email updates. Use ACE Reports or work with the customs broker that filed the declaration.
The key reports include:
- ES-003: Identifies entry lines with IEEPA tariffs.
- ES-022 CAPE Entry Summary: Links CAPE declarations, entries, and refund numbers.
- REV-603 Trade Refund: Shows pending and successful refunds.
- REV-613 ACH Rejected Refunds: Identifies refunds rejected because ACH enrolment is missing or unsuccessful.
- REV-615 CAPE Detail Refund: Provides detailed CAPE refund information at entry level.
A CAPE Declaration can also result in a bill. This may happen if the recalculated duty on the entry is higher than the amount originally paid. CBP can also divert a refund to offset legally fixed, unpaid CBP debts.
Record the declaration number, accepted entries, rejected entries, refund amount, interest, liquidation date, and payment status. This will help you reconcile the refund into your accounting system accurately.
Watch two more October deadlines
15 October 2026: Form 5472 and extended US returns
Calendar-year foreign-owned US LLCs and corporations that timely filed Form 7004 must file their extended Form 1120 and Form 5472 obligations by 15 October 2026.
For a foreign-owned US disregarded entity, Form 5472 is filed with a pro forma Form 1120. The IRS requires Form 5472 to be filed by the due date of the associated return, including extensions.
Form 5472 penalties can reach $25,000 for e
