Wing Inflatables says FedEx Trade Networks has been holding more than $1.4 million in government‑issued tariff refunds for months, delaying payments to the Arcata‑based manufacturer and potentially hundreds of thousands of other U.S. businesses that used FedEx as their customs broker.

Refunds stem from the Supreme Court’s reversal of IEEPA tariffs, emergency duties the administration imposed on a broad range of imported goods. After the court ruled earlier this year that the administration exceeded its authority, U.S. Customs and Border Protection began issuing repayments in May through its CAPE system. For importers that used FedEx Trade Networks as their customs broker, CBP routed those refunds to FedEx under long‑standing Form 4811 “notify party” filings — meaning the money flowed to FedEx first, not the businesses that originally paid the duties.

The U.S. Customs and Border Protection website states the CAPE system was launched to “streamline the submission and processing of valid refund requests for duties imposed under the International Emergency Economic Powers Act (IEEPA), as authorized by court order or applicable law.”

Wing Inflatables President and CEO Andrew Branagh told the Times-Standard that FedEx never notified the company it had received the money on Wing’s behalf. Wing’s internal accounting summary states that CBP confirmed the funds were sent to FedEx beginning May 18 and continuing to June 12. Branagh said the delay has forced the company to borrow money to cover operating costs.

“We paid that money to the government for these unexpected tariffs, so it’s direct cash out of our pocket that I don’t have to increase wages or reinvest in the business,” said Branagh. “If we don’t pay FedEx exactly on time, literally, if it’s one day late, we start getting charged interest at 18%. It’s crazy. But they’re holding our money for four to six months and paying no interest at all. So it’s a one-sided practice right now, and I think it’s got to be exposed.”

Wing Inflatables filed its claims at 5 a.m. on April 20, the first day the CAPE portal opened, according to internal records provided by the company. Refund approvals began May 5, and CBP transmitted multiple batches of funds in May and June. Of the company’s $1.66 million approved refund, $1.47 million was sent to FedEx. Only $173,752 — the portion tied to shipments Wing imported without using FedEx has reached the company.

Whitney Fogerty, vice president of legal for FedEx, told Branagh in a letter, “Our commitment, as publicly announced, is to remit all applicable duties and accrued interest received from the U.S. Treasury to our customers who originally bore those charges as quickly as possible. We will begin disbursing these refunds on Aug. 10, 2026, and continue to do so thereafter on a rolling basis. Because FedEx is not charging customers for the administrative processing, reconciliation, and distribution of IEEPA tariff refunds directed to it and is absorbing all costs associated with these activities, FedEx will not pay additional interest beyond what is directed by CBP and paid by the U.S. Treasury. The refund process is complex. FedEx is managing over 20 million entries with IEEPA duties attached across hundreds of thousands of accounts. We are obligated as a broker to exercise diligence in the management and financial settlement of refunds.”

Branaugh noted the issue appears to be widespread.

“Their attorney’s letter to us pretty much says that they’re doing this to everybody. They say they’re doing this to every one of their clients. So this is their global practice,” said Branagh. “Holy smokes, think of how much money they’re sitting on right now. If the government has distributed a significant portion of the IEEPA refund, think how much if they said they have 20 million claims … think of how much money those guys are sitting on right now.”

FedEx is launching a customer portal on July 10 to allow businesses to verify their refunds. The portal will allow customers to enter details for up to 100 shipments at a time, view the refunds received by FedEx for those shipments, including interest, and the date received by FedEx.

In the letter, Fogerty wrote, “To expedite the reconciliation and refund processes, FedEx has retained several well-known and reputable vendors to assist.” Customers who “opt into data sharing” will receive payment sooner, according to FedEx’s written response.

“To clarify, consent to share limited data with our trusted vendors is entirely voluntary and not a prerequisite for receiving a refund,” wrote Fogerty. “Because our processing partners have dedicated, high-capacity resources allocated to this project, customers who consent will benefit from expedited, automated processing and faster disbursement. Those who decline may face longer delays.”

Branagh disputes the need for additional verification, saying the company has already provided FedEx with the government trace numbers, claim approvals, and proof of payment. FedEx says it will return interest paid by the U.S. Treasury but will not pay interest for the months it has held customer funds.

FedEx Trade Networks acts as the customs broker for Wing’s imported shipments, handling the logistics, clearing containers through the port, and charging the company for shipping, duties, and brokerage fees. Although importers remit tariffs to the government quarterly, FedEx collects those funds from Wing Inflatables within days and holds the money until it’s due.

“Any refunds, audits, or follow‑up work are part of the original commitment,” said Branagh. “FedEx makes us pay the duties up front, then holds the money for months before sending it to the government. I pay them a fee to act as my agent, but if there’s a mistake, I’m the one obligated to give the money back.”

Two law firms declined representation because they also work for FedEx, and FedEx has not responded to Wing’s request for a conflict‑of‑interest waiver. The National Association of Manufacturers (NAM) staff told Branagh they have heard similar complaints from other members but cannot intervene because FedEx is also a NAM member.

“I’m not the first person who has a frustration right now about this with FedEx,” said Branagh.

Branagh contacted Rep. Jared Huffman’s office, which he said was “surprised” by the situation. According to a spokesperson for Huffman’s office, “He and his team are actively working on the case to assist Mr. Branagh find a resolution.”

Branagh noted that Wing has already received refunds for shipments it imported without FedEx earlier this year, a contrast that highlights the issue with how FedEx is handling and dispersing the funds.

“There are alternatives to FedEx, and part of the reason we have received some money directly is that earlier this year we established our own importing basis, and we act as our own agent presently,” said Branagh. “We’ve been paid, I think $170,000 for the stuff that we imported without using FedEx. I wish I had never used FedEx. That’s really what I’m saying. I wish I’d never used them as an import partner, because I’ve already received payments for the stuff I did myself.”

FedEx did not respond to requests for comment from the Times‑Standard before the publishing deadline.

Maranda Vargas can be reached at 707-441-0504