UPS · 10-Q · 2026Q3 · Full report

Tariff Refund and Gross Margin

UNITED PARCEL SERVICE INC · 2026-11-04 · Importance 34 · Surprise 42

After a February 2026 Supreme Court ruling invalidated certain IEEPA tariffs, UPS received approximately $500 million in tariff refunds under the first phase of the CBP administrative process. As of September 30, 2026, approximately $270 million had not yet been passed through to customers and was recorded in other current liabilities. The remaining customer pass-through balance is a liability rather than recognized retained revenue in the disclosed amount.

Key facts

• UPS received approximately $500 million of IEEPA tariff refunds under the first phase of the CBP administrative refund process. source
• UPS received approximately $270 million in cash from CBP in 2026 related to pass-through IEEPA tariff refunds refundable to customers. source
• As of September 30, 2026, approximately $270 million of UPS's tariff refunds had not been passed through to customers and was included in other current liabilities. source