Why US Customs can't process Trump tariff refunds
What's the story
The US Customs and Border Protection (CBP) has said it can't comply with an order to process billions of dollars in refunds. The refunds are related to tariffs imposed by President Donald Trump. In a recent filing, CBP Executive Director Brandon Lord said that the agency's digital import processing system is "not well suited to a task of this scale."
Tariff impact
Supreme Court struck down Trump's tariffs last month
The CBP's admission comes after the Supreme Court last month struck down tariffs imposed by Trump under the International Emergency Economic Powers Act (IEEPA). This week, the International Trade Court ruled that importers affected by these tariffs are entitled to refunds with interest. The CBP estimates it collected around $166 billion in IEEPA duties as of March 4, 2026.
Legal action
CBP processes imports using ACE system
Several companies, including Nintendo, FedEx, and Costco, have sued the US government in the International Trade Court. They are seeking refunds for tariffs that the SC has ruled as "illegal." The CBP processes imports using its Automated Commercial Environment (ACE) system. However, Lord said it would take more than 4.4 million hours to process refunds for over 53.2 million entries with IEEPA duties using this existing technology.
Future steps
CBP is confident it can build new capabilities
Despite these challenges, the CBP is "confident" it can build and deploy new capabilities to "streamline and consolidate refunds and interest payments on an importer basis." This process could take up to 45 days. Lord said, "The process will be simpler and more efficient than the existing functionalities, and CBP will provide guidance on how to file refund declarations in the new system."