A US government agency is developing a new system to streamline the tariff refund process, aiming to be operational within 45 days. Brandon Lord, executive director of U.S. Customs and Border Protection (CBP)’s trade policy and programs directorate, revealed plans for a simplified process that would require minimal submission from importers. The CBP has already amassed around US$166 billion in tariffs from over 330,000 importers through the emergency tariff program.
The recent Supreme Court decision invalidated the Trump administration’s emergency duties, prompting the need for a refund mechanism. The ruling, which rejected the use of the 1977 International Emergency Economic Powers Act (IEEPA) for country-specific tariffs, did not specify a refund procedure. Lord highlighted the current challenges, estimating that the existing refund process would demand over 4.4 million man-hours to complete.
In response to the court’s decision, the Trump administration is phasing out the emergency tariffs and introducing new duties under different legal frameworks. Starting with a 10 percent global tariff under Section 122, the administration plans to increase the rate to 15 percent. Additionally, it is utilizing Section 301 of the 1974 Trade Act to conduct trade investigations targeting various trading partners for alleged unfair practices.
