US Customs and Border Protection (CBP) has detailed its progress on establishing a mechanism to return tariffs collected under the International Emergency Economic Powers Act (IEEPA).

The update was submitted to the US Court of International Trade (CIT) through a declaration from Brandon Lord, Executive Director of Trade Programs within CBP’s Office of Trade.

CBP stated that its current infrastructure cannot immediately automate reimbursements.

To address this, the agency is creating new functionality within the Automated Commercial Environment (ACE).

According to the filing, the system enhancement could be operational within roughly 45 days, pending court approval and final agency guidance.

Earlier, the court ordered CBP to begin refunding an estimated USD 166 billion in tariffs collected prior to the Supreme Court ruling that President Donald Trump lacked the authority to impose them.

The refunds will include interest, with an external estimate suggesting the US government incurs an additional USD 23 million in interest costs for each day without payment.

CBP explained that manual verification of shipment records would have required more than 4 million labour hours, as existing procedures and technology are not designed for work on this scale. The automated process under development is therefore intended to handle the significant volume of claims.

Neil Bradley, executive vice president and chief policy officer at the US Chamber of Commerce, said the approach “would spare the hundreds of thousands of small businesses who are owed refunds from having to litigate to obtain them.”

As of 4 March, over 2,000 importers had already submitted lawsuits to CIT following the 20 February Supreme Court decision.

Under the forthcoming system, shippers will receive a single consolidated refund regardless of the number of shipments or cargo types involved.

CBP’s filing indicated that more than 330,000 importers are eligible for refunds covering over 53 million customs entries.