The Trump administration told a federal court on Thursday how it will refund companies after its sweeping “Liberation Day” tariffs were struck down by the Supreme Court last month.
The Supreme Court ruled 6-3 last month that the sweeping global tariffs imposed using the International Emergency Economic Powers Act were unlawful, and a judge on the U.S. Court of International Trade later ordered refunds for all unlawfully collected tariffs shortly after the high court’s decision. In one case in which companies are pursuing tariff refunds, Brandon Lord, executive director of Customs and Border Protection’s Trade Policy and Programs directorate, filed a sworn declaration outlining the new web portal being developed for companies to file refund requests.
“CBP is developing a new capability within its system of record for imported merchandise … to prepare to calculate and provide valid refunds of additional ad valorem duties imposed under IEEPA,” Lord said in his filing to the court.
The CBP official outlined how the claim portal, which is 70% complete, the mass processing system, which is 40% complete, the review process, which is 80% developed, and the refund process, which is 60% complete, will be designed and work. He also noted the portal would be developed in a phased process. Lord said the portal will be able to process the “majority” of items that had IEEPA tariffs imposed on them and will be updated to handle more complex cases.
Judge Richard Eaton, an appointee of former President Bill Clinton who is presiding over the case, said in an order Thursday that the declaration had proven that the Trump administration “is making satisfactory progress to timely complete the development of a process to issue refunds of International Emergency Economic Powers Act duties paid, with interest.” He additionally ordered the administration to file another status update on the development of the refund portal on March 19.
The lawsuit Eaton is overseeing in the Court of International Trade is the furthest along of the tariff refund cases, but it is not the only legal battle over President Donald Trump’s tariff agenda. After the IEEPA tariffs were struck down, the president enacted new global tariffs using Section 122 of the 1974 Trade Act. The new Section 122 tariffs have faced their own set of lawsuits.
LEGAL WAR OVER TRUMP TARIFFS STILL RAGING DESPITE SUPREME COURT RULING
In a lawsuit brought by 23 Democrat-led states and two Democratic governors against the new Section 122 tariffs in the Court of International Trade, a judge has scheduled arguments for April 10.
The 1974 law allows Trump to impose duties of up to 15% without congressional approval for 150 days, but the lawsuit by the Democrat-led states argues the president has a “fatally flawed” justification for invoking Section 122 to impose the tariffs.