Billions in Tariff Refunds Go Unclaimed. Caspian Wants to Fix That

“Over 90% of eligible importers don’t apply for tariff refunds … it’s too painful,” wrote Justin Sherlock, co-founder and CEO of Caspian. “The data lives in too many systems, the paperwork is brutal, and there’s no easy way to forecast or manage it.”

Sherlock and co-founder Matt Ebeweber spent years at Flexport watching manufacturers and retailers struggle with the complexity of duty drawback: a process that allows companies to reclaim tariffs on imported goods that are later re-exported. The paperwork, regulatory interpretation, and data matching often spanned years and multiple systems, making it unmanageable for all but the largest players.

In 2024, they left to build Caspian, a startup focused on automating this process through AI and modern software infrastructure. Backed by $5.4 million in seed funding from Primary Venture Partners and Blank Ventures, the company launched publicly this month with a platform designed to make duty recovery faster, cheaper, and more reliable for businesses of all sizes.

Replacing Manual Drawback Claims with AI-Driven Filing

Duty drawback, the refund of tariffs on imported goods that are later exported, is among the most opaque corners of international trade. Filing a claim requires matching years of import-export records, interpreting dense customs codes, and navigating an audit-prone review process from U.S. Customs and Border Protection. Historically, companies have relied on expensive consultants or in-house teams to handle the work. Even then, many eligible claims go unfiled.