US Customs reports progress on tariff refund system

US Customs says its system for 166 billion dollars in tariff refunds is nearly ready. Processing will take up to 45 days once the phased rollout begins.

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The United States customs agency is making progress on a new system to refund approximately $166 billion in tariff collections deemed illegal by the Supreme Court, though the agency warned that processing could take up to 45 days. In a filing with the U.S. Court of International Trade, Brandon Lord, an official with U.S. Customs and Border Protection (CBP), indicated that the development of the refund portal and review infrastructure is currently between 60% and 85% complete.

While a specific start date for applications has not been announced, the agency is working toward a deadline in late April. The new system is designed to accept claims in phases, with initial priority given to customs entries finalized within the previous 80 days, as well as those with suspended or extended liquidation statuses. The first phase will also accommodate declarations involving warehouse and warehouse withdrawal entries.

Shipping containers are stacked at Terminal Island in the Port of Los Angeles, California, as seen in February 2026. REUTERS/Mike Blake/File Photo

According to the filing, 26,664 importers of record have already completed the process to receive electronic refunds. This represents 78% of the entries for which duties were paid under the International Emergency Economic Powers Act (IEEPA), amounting to $120 billion. The Supreme Court recently struck down broad global tariffs issued under the IEEPA, a move that impacted over 330,000 importers and 53 million shipments.

Because the Supreme Court did not provide specific guidance on how to return the payments collected since February 2025, the matter was left to the Court of International Trade in New York City. Numerous large-scale importers, such as FedEx Corporation, initiated legal action against CBP to protect their rights to these refunds, especially after suggestions that the process could take up to five years. In contrast, many smaller importers expressed concern that the administrative costs of the refund process might exceed the potential reimbursement.

Earlier this month, Judge Richard Eaton of the Court of International Trade ordered CBP to begin processing the refunds using its existing framework. However, the agency proposed the new system instead, asserting it would be ready to accept applications as soon as next month and would eliminate the need for importers to file individual lawsuits.

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