U.S. Customs Sets Tariff Refund System for Importers

The Trump administration is set to begin on Monday a new system for refunding tariffs to American importers, after the U.S. Supreme Court struck down $166 billion in duties it found unlawful in February, according to a court filing and a separate announcement from U.S. Customs and Border Protection.

The initial phase of the system, known as CAPE, is designed to consolidate refunds so importers receive one electronic payment, with interest when applicable, instead of having to seek reimbursement entry by entry. Customs said in the filing on Tuesday that it had finished developing the first phase of the program. The agency said the launch date would be April 20.

The filing was made by Brandon Lord, a Customs official, in the New York-based Court of International Trade, which is overseeing the refund process after importers sued for repayment following the Supreme Court ruling. The court said President Donald Trump had exceeded his authority when he imposed broad global tariffs under the International Emergency Economic Powers Act, a 1977 law intended for national emergencies.

As of April 9, 56,497 importers had completed the process needed to receive electronic refunds tied to the court’s decision, covering $127 billion in tariffs, according to the filing. More than 330,000 importers paid the disputed tariffs on 53 million shipments of imported goods, court documents show.

Customs has said it plans to roll out CAPE in phases. In its first stage, the system will handle refunds for recently imported goods and straightforward entries. Lord said the agency is also weighing how to process refunds on a smaller set of entries subject to $2.9 billion in tariffs that would normally require manual handling. He said that approach would sharply increase workloads and pull staff away from trade operations and enforcement.

The refund system matters for importers across industries because tariff payments affect cash flow and operating costs until they are returned. Companies that brought goods into the United States while the tariffs were in place have been waiting for clarity on how and when they will be reimbursed.

After the Supreme Court ruling, some smaller importers said the cost of pursuing refunds could outweigh the benefit, prompting some firms to look for financing options tied to expected reimbursements.

Trump criticized the Supreme Court after its decision and later imposed a new temporary global tariff under a different legal authority. That measure has also been challenged in court.