The US Customs and Border Protection (CBP) is preparing to launch a major refund programme for tariffs deemed illegal by the Supreme Court, with over 26,000 importers already registered. The online portal for claims is 85% complete, officials confirmed in a court filing this week, as the agency works to return an estimated $166 billion.
The refunds stem from a February Supreme Court decision that struck down tariffs imposed under the International Emergency Economic Powers Act (IEEPA) by the previous Trump administration. Following the ruling, the Court of International Trade ordered CBP to begin recalculating duties and issuing refunds.
Portal Development and Phased Rollout
In a filing on Tuesday, Brandon Lord, a senior CBP official, stated the main refund claim portal is undergoing "critical testing required before deployment." He confirmed the system is 85% finished, with other components between 60% and 80% complete.
The initial phase, scheduled for a mid-April launch, will cover roughly 63% of the 53 million import entries affected by the court ruling. However, processing the remaining claims will take longer due to their complexity.
Challenge of 'Liquidated' Entries
A significant complication involves approximately one-third of the claims tied to entries that have undergone customs liquidation. This process, which typically occurs within a year of an import's entry, usually makes associated tariffs permanent.
Brandon Lord stated these liquidated entries will be handled in later refund phases as "more capabilities will come online." The court filing notes it remains unclear when funds from these liquidated entries will be returned.
Legal Pressure and Interest Payments
Overseeing the litigation, Judge Richard Eaton of the Court of International Trade expanded his ruling on 27 March to clarify that liquidated tariffs are also eligible for reimbursement. This followed concerns raised by affected companies.
According to Judge Eaton's previous orders, CBP is also responsible for paying interest on the held tariffs. The agency estimates this interest accrues at $700 million per month, or $23 million per day, for every day the refunds are delayed.
As of 26 March, the CBP's new online system had drawn 26,664 registrations from importers seeking refunds. While registered importers are confirmed eligible, CBP has not yet begun distributing the funds as it finalises the portal's development and testing.