Customs and Border Safety cannot adjust to order

U.S. Customs and Border Safety informed a U.S. Court docket of Worldwide Commerce choose on Friday that it’s not presently capable of comply together with his order to start refunding about $166 billion collected in reciprocal tariffs imposed final yr by President Donald Trump.

CBP, in a court docket submitting, cited its current expertise, processes and manpower necessities as the explanations it couldn’t instantly adjust to the situations of Choose Richard Eaton’s order on the so-called IEEPA tariffs. The Supreme Court docket just lately dominated these duties are unlawful.

However CBP additionally urged within the new submitting that it may start issuing refunds by late April after revamping its expertise.

Brandon Lord, government director of the commerce packages directorate at CBP’s Workplace of Commerce, within the submitting stated that as of Wednesday, greater than 330,000 importers have made a complete of over 53 million
entries “wherein they’ve deposited or paid duties imposed pursuant to the Worldwide Emergency Financial Powers Act.”

Trump had invoked that act to slap reciprocal tariffs in numerous quantities on imported merchandise from many of the world’s international locations, with out authorization from Congress.

The submitting got here as Eaton was set to carry a listening to Friday on the refund challenge on the Court docket of Worldwide Commerce in New York.

Eaton has been designated as the one CIT choose who will hear lawsuits from importers in search of refunds on Trump’s tariffs in gentle of the Supreme Court docket’s 6-3 ruling invalidating them on Feb. 20, within the case generally known as Studying Sources, Inc. v. Trump.

CBP within the submitting stated it “is assured that it might probably develop and implement” new performance in its Automated Industrial Surroundings — the system for monitoring imported merchandise — “that may streamline and consolidate refunds and curiosity funds on an importer foundation,” as a substitute of issuing greater than 54 million separate refunds.

“CBP is making all attainable efforts to have this new ACE performance prepared to be used in 45 days,” the company stated. “This new course of would require minimal submission from importers.”

The company stated it estimates that altering the ACE system “will save CBP over 4 million hours” of labor by staff.

Eaton on Wednesday ordered CBP to calculate the price of bringing in shipments into america with out assessing a tariff, and informed the company to make refunds to importers who had paid the IEEPA tariffs, with curiosity.

“Customs is aware of how to do that,” Eaton stated throughout a court docket listening to on Wednesday. “They do it each day. They liquidate entries and make refunds.”

The Trump administration may attraction Eaton’s order to the U.S. Court docket of Appeals for the Federal Circuit, which may additional delay the issuance of refunds to importers.

Many importers have sued the Trump administration in search of refunds of tariffs they’ve paid since final yr that have been deemed unlawful.

Eaton’s order on the refunds was issued in a lawsuit filed by a type of importers, Atmus Filtrationnevertheless it applies to each obligation that was paid in reference to the IEEPA tariffs. Atmus Filtration, which relies in Nashville, Tennessee, makes filters, coolant and chemical merchandise.

Within the submitting Wednesday by CBP’s Lord, the company indicated that its current expertise was making it inconceivable to right away adjust to Eaton’s order.

“In gentle of the Court docket’s March 5, 2026 amended order, CBP is now going through an unprecedented quantity of refunds. Its current administrative procedures and expertise are usually not nicely suited to a activity of this scale and would require handbook work that may stop personnel from totally finishing up the company’s commerce enforcement mission,” the submitting stated.

“Personnel can be redirected from obligations that serve to mitigate imminent threats to nationwide safety and financial safety,” the company stated.