The US Customs and Border Protection (CBP) has told a federal court that it is currently unable to begin refunding tariffs imposed during President Donald Trump's administration that were recently ruled illegal by the US Supreme Court.
In a court filing submitted on March 6 ahead of a hearing at the US Court of International Trade (CIT) in New York, CBP said it cannot immediately comply with an order directing the agency to start returning tariffs collected under the International Emergency Economic Powers Act (IEEPA) framework.
According to the filing, the total value of tariffs collected under the IEEPA measures, along with estimated duty deposits linked to those tariffs, amounts to about $166 billion as of Tuesday.
Also Read: Russian Crude Still Accounts For 20% Of India's Oil Imports: Govt Sources
The submission comes as Judge Richard Eaton prepares to hear arguments in New York regarding the refund process. Eaton has been designated as the sole judge at the Court of International Trade to oversee cases filed by importers seeking reimbursement of tariffs imposed under the IEEPA authority.
Earlier this week, media reports said that Eaton directed CBP to estimate the administrative costs of processing shipments entering the United States without tariffs and ordered the agency to begin refunding importers who had paid the duties, including interest.
“Customs knows how to do this,” Eaton said during a court hearing on Wednesday. “They do it every day. They liquidate entries and make refunds.”
Also Read:
Several importers have filed lawsuits against the Trump administration seeking reimbursement for tariffs paid since last year under the emergency economic powers provisions.
The refund directive stems from a case brought by Atmus Filtration, which challenged the legality of the tariffs. According to the court's order, the directive applies broadly to all duties collected under the IEEPA tariffs, not just those paid by the company involved in the case.
The dispute follows a ruling by the US Supreme Court that the tariffs imposed under the IEEPA authority were unlawful. The duties had been introduced by Trump last year using emergency economic powers provisions.
Importers subsequently challenged the measures in court, arguing the administration did not have the legal authority to impose tariffs under the IEEPA framework. The Court of International Trade is now overseeing proceedings related to refunds for duties already paid under the policy.
Essential Business Intelligence, Continuous LIVE TV, Sharp Market Insights, Practical Personal Finance Advice and Latest Stories — On NDTV Profit.