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US Customs Agency says that the tariff refund system is progressing but payments could take up to 45 Days

U.S. Customs Agency said Tuesday that it is making progress in setting up a simplified process to refund some $166 billion?in tariff collection deemed illegal by Supreme Court. However, its new system could take as long as?45 days for review and processing?refund requests. Brandon Lord, a U.S. Customs and Border Protection representative, said in a filing to the U.S. Court of International Trade that development of a refund claims portal, review and processing system, and refund system are now between 60-85% complete. Lord did not specify a date when applications would be accepted, but the agency had previously indicated a goal of 45 days, which ends in April. Lord stated in the declaration filed on Tuesday that 'the new system would begin accepting claims gradually, giving priority to entries that have been liquidated or 'finalized' within the previous 80 days, and entries with liquidation status "suspended" or "under review".

Lord stated that the initial phase would also accept declarations containing entries for warehouses and warehouse withdrawals. Lord said that the initial phase will also 'accept declarations containing warehouse and warehouse withdrawal entries.

The U.S. Supreme Court struck down last month President Donald Trump's most expansive global tariffs, under IEEPA. This was a major blow to his central economic policy.

Documents from the court show that more than 330,000 importers 'paid the IEEPA duties on 53 million shipments. The Supreme Court gave no guidance regarding the refund of tariff payments collected by importers between February 2025 and now. That matter was left to the Court for International Trade in New York City. FedEx and other large importers sued CBP in order to secure their refund rights, which Trump claimed could take up to five years. Many smaller importers were afraid that the costs of the refund process would be too high to justify the benefits.

The Court of International Trade's Judge Richard Eaton ordered CBP earlier this month to process?refunds with its existing system. However, the agency proposed a different method that would allow refund requests to be accepted as early as next month without requiring importers to file a lawsuit. (Reporting and editing by Paul Simao; Additional reporting in Wilmington, Delaware by Tom Hals; Reporting by David Lawder)

(source: Reuters)