US Customs Agency Plans Tariff Refund System Within 45 Days

The US Customs and Border Protection (CBP) agency has announced it will need about six weeks to develop a system for processing tariff refunds following the Supreme Court's decision to invalidate certain tariffs imposed by President Donald Trump. The refund process involves approximately $166 billion in tariffs paid by over 330,000 importers on more than 53 million shipments.

A CBP official revealed in a court declaration that the agency's existing administrative procedures and technology are not well-suited to handle the task of this scale. Building an automated system would save roughly four million hours of work, according to the official. The agency is confident it can develop a more streamlined process within the coming weeks.

Judge Richard Eaton, appointed by former President Bill Clinton, laid out the multibillion-dollar refund process in a three-page order. He stated that CBP should calculate what importers would have paid without the tariffs, paving the way for refunds to companies. Eaton also made clear he had sole jurisdiction over the refunds, which more than 1,000 companies have sued over in the trade court.

The case was brought by Atmus Filtration, Inc., a company that paid President Donald Trump's tariffs imposed under the International Emergency Economic Powers Act (IEEPA). The Supreme Court decided 6-3 in February to block Trump's use of the emergency law to impose sweeping tariffs on trading partners. The majority held that IEEPA does not authorize tariffs, even after a national emergency declaration.

All importers who paid those duties were entitled to benefit from the Supreme Court's ruling, Eaton said. He disputed notions that the refund process would be chaotic or messy, stating that there is nothing particularly novel about providing refunds.