The United States Customs and Border Protection (CBP) agency announced on Friday that it requires an additional 45 days to establish a system for processing refund requests related to tariffs recently invalidated by the Supreme Court. This announcement followed a closed-door meeting with Judge Richard Eaton of the US Court of International Trade, where CBP lawyers were present.
The delay comes after Judge Eaton ruled that the US government owes refunds to importers who paid tariffs under the International Emergency Economic Powers Act (IEEPA), a law President Donald Trump invoked during his administration. The Supreme Court deemed this use of IEEPA illegal in a decision issued on February 20.
Background on the Tariff Dispute
In a court filing on Friday, Brandon Lord, director of CBP’s trade policies program, explained that the agency is currently unable to comply with Judge Eaton’s ruling, which proposed automatic tariff refunds with interest. Lord noted that reprogramming the record system used to track duties collected from importers would take time.
“Given the volume of entries made each year, CBP is unable to affirmatively review and liquidate each entry, and the majority of entries automatically liquidate,” Lord stated.
“As of March 4, 2026, over 330,000 importers have made a total of over 53 million entries in which they have deposited or paid duties imposed pursuant to the International Emergency Economic Powers Act.”
Challenges and Implications
Lord emphasized the enormity of the task, noting that automating the process could save the CBP more than four million hours of manual labor. However, setting up the new system would require at least 45 days. “CBP has never been ordered to, nor has it attempted to, process a volume of refunds anywhere near the volume of total entries and Entry Summary lines on which IEEPA duties have been deposited,” he wrote.
Despite the outlined plan, Lord did not specify when companies could expect to receive their tariff refunds. The US Court of International Trade has suspended the immediate compliance order, seemingly in response to CBP’s request for more time to establish the refund process.
Financial Impact and Legal Context
CBP estimates that tariff deposits made under the IEEPA amounted to approximately $166 billion as of March 4. The Supreme Court’s ruling last month concluded that Trump overstepped his authority by using IEEPA to increase tariffs globally, a key component of his political strategy. The former president has stated his intention to maintain tariffs through alternative legal means.
Judge Eaton’s ruling was prompted by a complaint from Atmus Filtration, an importer, but it has broader implications for all importers subjected to IEEPA tariffs, allowing them to request refunds. CBP has assured that companies will not need to file lawsuits to receive reimbursements under the forthcoming system.
Next Steps and Future Outlook
According to Lord, the new refund process will require minimal input from importers. However, he indicated that importers must register electronically to receive refunds. As of February 6, only 21,423 importers had registered, out of approximately 330,566 eligible entities.
“Until importers complete the process to receive refunds electronically, the refunds will be rejected,” Lord stated. This development highlights the logistical challenges faced by CBP in implementing the Supreme Court’s decision and the potential delays importers may encounter in receiving their refunds.
As the CBP works to develop this new system, the agency’s ability to efficiently manage the refund process will be closely watched by importers and policymakers alike. The situation underscores the complexities of international trade laws and the far-reaching impacts of tariff policies.
