Customs and Border Protection representative states that a revised procedure for tariff reimbursements may be implemented within 45 days

Progress Toward Tariff Refunds for Businesses

NEW YORK (AP) — Authorities are making headway in establishing a refund procedure for the hundreds of thousands of businesses that paid tariffs now ruled unlawful.

On Friday, Brandon Lord, who leads trade policy and programs at U.S. Customs and Border Protection (CBP), informed the Court of International Trade that the agency is developing a new system to make the refund process easier. This system is expected to be operational within 45 days and will require only limited information from importers.

This update follows a recent court order mandating the government to reimburse all importers for the illegal tariffs they paid, including interest. Judge Richard Eaton of the U.S. Court of International Trade stated that every registered importer is eligible for compensation under the Supreme Court decision that invalidated the broad import taxes imposed by former President Donald Trump last year under the 1977 International Emergency Economic Powers Act (IEEPA).

The proposed refund process will need Judge Eaton’s approval before it can move forward.

According to Lord, as of March 4, more than 330,000 importers had submitted over 53 million entries to CBP, collectively paying around $166 billion in tariffs that are now subject to reimbursement.

Lord pointed out that, using the current system, processing these refunds would require over 4.4 million hours of labor. He emphasized that dedicating all staff to this task would severely impact CBP’s ability to fulfill its other critical duties, including revenue collection and national security operations.

Nevertheless, Lord expressed confidence that the agency can introduce a new approach to efficiently manage both refunds and interest payments. The new system is anticipated to be ready within 45 days.

“This updated process will ask for minimal input from importers,” Lord explained. “It will also help prevent mistakes by using system checks to ensure accurate IEEPA refund calculations, and it will provide a review period for CBP to address any discrepancies with importers and confirm there are no unresolved enforcement matters or outstanding payments.”

Lord also highlighted that, as of February 6, CBP only processes refunds electronically. However, the majority of importers have not yet enrolled in the electronic system. Out of 330,566 importers who paid tariffs, just 21,423 have completed the necessary steps to receive electronic refunds.

“Refunds will be denied until importers finish registering for electronic payments,” Lord added.