U.S. Customs and Border Protection (CBP) is developing a system to refund approximately $130 billion in tariffs to importers, following a Supreme Court ruling that deemed the duties illegal. According to a Reuters report, a CBP official stated in a court filing that the agency cannot immediately comply with a judicial order to process the refunds but is creating a mechanism to do so.
The official indicated the system would be operational within 45 days but did not provide a timeline for when refunds would be disbursed. The refund obligation stems from a Wednesday ruling by Judge Richard Eaton of the U.S. Court of International Trade, who ordered CBP to initiate the refund process and mandated a status update at a Friday hearing. Judge Eaton explicitly stated that “every single cent” of the duties collected under the International Emergency Economic Powers Act (IEEPA) must be returned.
Separately, the Financial Times reported that CBP is currently rejecting companies’ applications for tariff refunds, regardless of whether the related shipment entries are open or closed. This has led some legal advisors to recommend clients pursue litigation in addition to administrative filings.
When questioned about the refund process, National Economic Council Director Kevin Hassett suggested that the matter would likely be resolved through litigation involving major market participants.
CBP did not immediately respond to a request for comment on the Financial Times report.
