Industrial Equipment Importers and IEEPA
U.S. manufacturers, distributors, and industrial buyers who imported equipment, machinery, and components from China, Germany, Taiwan, Japan, and other covered countries during the IEEPA period have meaningful refund exposure. Industrial equipment spans a wide range of HTS codes and price points, but high-value capital equipment imports from high-rate countries create large per-entry refunds.
Chapter 84 (machinery) and Chapter 85 (electrical equipment) together represent the single largest import category for the United States, and both were fully subject to IEEPA rates.
Key Product Categories
Machinery (Chapter 84)
- 8479.89: Machines for specific industries (food processing, paper, plastics)
- 8483.10: Transmission shafts and cranks
- 8424.89: Agricultural and industrial sprayers
- 8408.90: Internal combustion piston engines for industrial use
- 8414.80: Air compressors and industrial fans
Electrical Equipment (Chapter 85)
- 8501.52: AC motors and generators
- 8535–8537: Switchgear, circuit breakers, and control panels
- 8504.40: Static converters, inverters
- 8543.70: Other electrical machines and apparatus
Germany (EU): Capital Equipment
Germany is a major supplier of high-value industrial equipment to the United States — machine tools, precision instruments, industrial robots, and specialized manufacturing equipment. At a 20% IEEPA rate, a $500,000 CNC machine imported from Germany generated $100,000 in IEEPA duties. For capital equipment importers with multiple large purchases during 2025, the refund total can be significant.
China: Industrial Complexity
Chinese industrial equipment imports face Section 301 tariffs (typically 25%) in addition to the 34% IEEPA rate. For industrial equipment importers from China, the IEEPA refund is the additional layer on top of Section 301 — and it can still be substantial.
Additionally, some Chinese-origin equipment may have been subject to anti-dumping or countervailing duty orders. Review each entry’s 7501 to confirm the duty assessment codes before including it in your CAPE CSV.
Capital Expenditure Accounting Considerations
Industrial equipment is often capitalized as a fixed asset rather than expensed immediately. This affects the tax treatment of IEEPA refunds — see our tax implications guide. The tariff paid at import may have been capitalized into the asset’s cost basis rather than immediately deducted. The refund would reduce the capitalized basis rather than create income. Discuss with your CPA.
Manufacturers Importing Their Own Equipment
U.S. manufacturers who import equipment for their own production facilities are importers of record on those entries and are fully eligible for CAPE refunds. The “goods for production” nature of the imports doesn’t affect eligibility — what matters is who was the IOR on the 7501.