Tariff Refund Process Update
To Our Valued Partners,
We want to share an important update on the developing refund process related to the IEEPA tariff litigation.
_________________________________
What the Court Ordered
On March 4, 2026, the U.S. Court of International Trade directed Customs to:
• Liquidate entries that have not yet liquidated without IEEPA duties
• Reliquidate entries that already liquidated but are not yet final and remove IEEPA duties
Entries that are already final were not addressed in that order.
The court then held a conference on March 6 to review implementation progress.
Following that conference, Judge Eaton issued another order requiring Customs to:
• File a status report explaining the progress made toward building a refund process
• Submit that report by 2:00 p.m. EDT on March 12, 2026
• Provide immediate information related to the plaintiff’s entries
Right now, the court’s attention is on how refunds and interest will actually be issued in practice.
What CBP Reported to the Court (March 6 Filing)
Customs filed a detailed declaration explaining that it cannot currently carry out the court’s order at scale.
According to CBP:
• Current systems cannot process these refunds automatically
• A new refund capability must be built inside ACE
• That system could take approximately 45 days to develop
CBP outlined a proposed operational pathway:
Importers submit a declaration in ACE listing entries where IEEPA duties were paid
ACE validates the entries
Duties are recalculated without IEEPA tariffs, including interest
CBP verifies submissions
Entries are liquidated or reliquidated automatically
Refunds and interest are grouped by importer
Treasury issues refunds electronically
Basically, the court ordered refunds, but Customs has to build the system that makes it possible.
Important Operational Issue Many Companies Are Missing
CBP also highlighted a major practical issue that could prevent refunds from being issued.
All Customs refunds have been electronic as of February 6, 2026.
As we shared in our Logistics Unleashed newsletter on February 6, companies must be properly enrolled for ACH refunds through the ACE Portal to receive payments.
However:
• 330,566 importers paid IEEPA duties or deposits
• Only 21,423 entities are set up to receive electronic refunds
• Since February 6, CBP has been unable to process 7,700 refunds
• Those rejected refunds involved 2,897 importers that had not completed enrollment
This means many companies would not receive refunds today even if CBP were ready to issue them.
What This Means
At this point:
• Refunds are not immediate
• The court is pushing Customs to move quickly
• Customs is building the system needed to process refunds
• Companies must be enabled to receive electronic payments
Being set up correctly in ACE is now critical.
What Companies Should Do Now
1. Confirm ACE Portal Access
If your company does not have ACE Portal access:
• Your customs broker may need to update your CBP Form 5106 record
• The importer name, email, and importer ID must match bond records
2. Set Up Electronic Refund Capability (ACH Refunds)
ACH refunds are separate from how duties are paid.
Enrollment must be completed inside ACE to receive refunds electronically.
Official Guidance:
ACE Portal and ACH Refund FAQs
If you do not receive confirmation emails, your importer record may need updating. Your customs broker can assist with the bond query and 5106 updates.
What Happens Next
• Customs must report refund process progress by March 12
• The court will review Customs’ implementation plan
• Additional procedural orders are likely
• System readiness is estimated in roughly 45 days
Resources:
CBP Declaration to the CIT (March 6, 2026)
Brandon Lord Declaration to U.S. Court of International Trade
CIT Order
Court of International Trade
We are closely monitoring all court filings and CBP guidance and will provide updates as soon as new information becomes available. Call me anytime at 833-782-7628 Ext. 1.
