CBP asks judge for more time to work on tariff refunds
A Customs and Border Protection official on Friday told a federal judge that the agency does not have the technology or manpower to immediately process $166 billion in tariff refunds, arguing the process would distract from its role addressing "imminent threats to national security."
In a sworn filing, the official said that CBP needs an additional 45 days to create a system to process refunds for the more than 53 million entries related to the unlawful tariffs.
"CBP has never been ordered to, nor has it attempted to, process a volume of refunds anywhere near the volume of total entries and Entry Summary lines on which IEEPA duties have been deposited," wrote Brandon Lord, the executive director of CBP's Trade Programs Directorate.
The disclosure comes two days after a judge from the Court of International Trade initially ordered the Trump administration to remove the tariffs from its backlog of import paperwork. Even though the liquidation process -- when the agency finalizes a tariff payment after goods enter the country -- is largely automated and the Supreme Court overturned the tariffs two weeks ago, Lord said that Customs and Border Protection "is not able to comply" with the court's order.
"CBP is now facing an unprecedented volume of refunds. Its existing administrative procedures and technology are not well suited to a task of this scale and will require manual work that will prevent personnel from fully carrying out the agency's trade enforcement mission," Lord said.
According to Lord, the current system used to process tariffs cannot handle the volume of refund requests, and that doing so manually would take resources away from "responsibilities that serve to mitigate imminent threats to national security and economic security."
Following a hearing on Friday related to the refund process, which was closed to the public, Judge Richard Eaton of the Court of International Trade suspended his earlier order to immediately begin recalculating tariffs dues.
By lifting his initial order, the judge appears to be making room for the refund process to play out, though the exact timeline of refunds remains unclear.
During previous hearings, the judge had expressed skepticism that the refund process would be a "mess" or that the government lacked the resources to issue refunds.
