U.S. Customs and Border Protection told the U.S. Court of International Trade it is building a system to deliver refunds for tariffs the Supreme Court recently struck down, and expects that system to be ready within about 45 days.
Importers have been waiting to learn how and when money collected under the now-unconstitutional duties would be returned. Some small businesses feared they would need to file individual lawsuits after lawyers and officials warned the refund process could become bogged down in litigation.
Customs said its current computer system cannot immediately process the large volume of refunds, but the agency is developing a streamlined procedure that would not require importers to sue. Officials plan to use the same electronic portal importers already use to track and correct customs filings.
The government estimates it collected roughly $166 billion from more than 330,000 businesses under the tariffs the Supreme Court found unlawful. Judge Richard Eaton of the Court of International Trade wrote that the duties were ‘‘unlawful from the moment they were imposed,’’ and ordered Customs to begin refunding those amounts with interest, then provide an update on progress. An appeals court recently denied the Justice Department’s request to pause refunds for 90 days.
During the litigation, the Justice Department repeatedly told courts that collected funds would be returned if the tariffs were invalidated — a point it used to justify continuing collections after a lower court had ruled the tariffs illegal. Sara Albrecht, head of the Liberty Justice Center that brought the case to the Supreme Court, said those assurances make it difficult for the government to refuse refunds.