U.S. Customs and Border Protection (CBP) faces a significant logistical challenge in processing roughly $166 billion in tariff refunds following a recent Supreme Court ruling that invalidated tariffs imposed by the Trump administration. The agency informed a federal court on Friday that it is not currently equipped to comply with an order to commence issuing those refunds.
The refunds relate to tariffs enacted under the International Emergency Economic Powers Act (IEEPA). According to a court filing by Brandon Lord, executive director of the trade programs directorate at CBP’s Office of Trade, over 330,000 importers have made more than 53 million entries involving these duties since last year. The Supreme Court’s decision determined that President Trump did not have the authority to impose these reciprocal tariffs without Congressional approval.
CBP indicated it anticipates being able to begin issuing refunds by late April, contingent upon revamping its existing technology and internal processes. Judge Richard Eaton of the U.S. Court of International Trade initially issued the refund order in a case brought by Atmus Filtration, but the order applies to all importers who paid duties under the invalidated IEEPA tariffs.
The agency cited existing technological limitations, procedural hurdles, and manpower constraints as reasons for the delay. The scale of the refunds – $166 billion – presents a substantial administrative undertaking for CBP. The government is scheduled to update the federal court on Thursday regarding its timeline for completing the refund process.
