U.S. Customs and Border Protection (CBP) told a Court of International Trade judge on Mar. 6, 2026, that it is not capable of complying with his order to refund import tariffs imposed by President Donald Trump last year, which the Supreme Court recently ruled as illegal.
In a court filing on Friday, Brandon Lord, the executive director of CBP’s trade policy and programs directorate, said the agency is establishing a new system that will streamline the process.
Lord stated that the agency’s existing technology, process, and manpower are not capable of completing the refund process because “CBP’s other functions and responsibilities would be severely disrupted and the agency would not be able to continue to adequately perform its mission, including its revenue protection mandate and its vital national security functions.”
Despite not being able to immediately comply with Judge Richard Eaton’s order, which was issued on Wednesday, Lord said it is “confident that it can develop and implement” a new system in its Automated Commercial Environment. The system “will streamline and consolidate refunds and interest payments on an importer basis,” rather than issuing the refunds separately.
“CBP is making all possible efforts to have this new ACE functionality ready for use in 45 days,” Lord added. “This new process will require minimal submission from importers.”
Lord confirmed that, as of Mar. 4, the total amount of International Emergency Economic Powers Act (IEEPA) tariffs collected by the agency is estimated to be “approximately $166 billion,” with more than 330,000 importers making over 53 million entries with CBP.
The filing comes after Judge Eaton ordered the Trump administration on Mar. 4 to calculate the cost of imports into the U.S. without the illegal tariffs and to issue refunds to the companies that paid the IEEPA duties.
Lord made it clear that, as of Feb. 6, CBP only issues refunds electronically.
“Until importers complete the process to receive refunds electronically, the refunds will be rejected,” he said.
As of Mar. 6.2026, only 21,423 importers who have paid the duties have set up the process to receive refunds electronically.
