CBP races to develop an automated system for historic IEEPA tariff refunds

The process for businesses seeking IEEPA tariff refunds is ongoing, but US Customs and Border Protection (CBP) says progress is being made.

Although the Supreme Court struck down the International Emergency Economic Powers Act (IEEPA) tariffs on February 20, 2026 and the US Court of International Trade (CIT) ordered refunds for all unliquidated and not fully liquidated entries less than a month after, the process remains complex. Over $160 billion in unlawfully collected tariffs is at stake, and there is no clear precedent for reimbursement.

A comparable historical example is the Supreme Court's 1998 ruling that the Harbor Maintenance Tax (HMT) on 1990s exports was unconstitutional. Those $600 million in refunds took about seven years to process. Currently, CBP faces three times as many importers and significantly higher financial stakes.

On March 4, CIT Judge Richard Eaton ruled that all importers of record are entitled to the benefits of the February 20 US Supreme Court decision in Learning Resources v. Trump, which struck down IEEPA tariffs. This decision grants businesses the right to reimbursement for all IEEPA tariffs paid on unliquidated and not fully liquidated entries.

CBP’s work to automate IEEPA tariff refunds

In a declaration submitted to the US Court of International Trade (CIT), the Executive Director of Trade Programs within CBP’s Office of Trade, Brandon Lord, explained that CBP’s current systems cannot support the immediate automated reimbursement of IEEPA-related duties. To address that hurdle, the agency is developing new functionality in the Automated Commercial Environment (ACE) to facilitate the refund process.

CBP expects to roll out this new capability in about 45 days, though the timeline still hinges on court approval and final agency direction.

Shipping company Maersk issued a notice regarding CBP’s proposed tariff refund solution, stating that CBP anticipates importers will need to submit a declaration in ACE identifying entries where IEEPA duties were paid.

After submission, ACE will validate each entry and recalculate duties, excluding IEEPA tariffs and applicable interest. CBP will review and verify the submission before returning it to ACE for liquidation or reliquidation of the affected entries.

Once this process is complete, importers should compile and submit all IEEPA tariff refund amounts to CBP. CBP will certify the refunds, and the US Department of the Treasury will issue payments electronically.

The shipping company advises businesses to confirm that ACH refund authorization is active in the ACE Portal to ensure tariff refunds are processed.

Over 1,000 businesses sue to secure a refund

News outlet The Associated Press reports that over 1,000 companies have filed suits in the US Court of International Trade to recover costs incurred due to illegal tariffs.

The plaintiffs, including major retailers and food suppliers such as Costco Wholesale and Dole, demand a full refund of all IEEPA tariffs paid, arguing that their imposition under the legislation is unlawful.

The companies are pursuing legal action as a precaution, even though CBP’s promised 45-day solution could make the lawsuits unnecessary.

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The fight for $130 billion: CIT orders refund of struck-down IEEPA tariffs