U.S. Customs and Border Protection is making progress in developing an online claim portal for tariff refund requests, according to a March 12 court filing.
- The Supreme Court recently deemed that the president did not have authority to impose global tariffs under the International Emergency Economic Powers Act, ruling the duties illegal and triggering a separate court order for refunds to businesses that paid the tariffs.
In Thursday’s filing, Brandon Lord, executive director of trade programs in CBP’s Office of Trade, estimated that the review portion of the new system was 80% complete and the mass processing portion was 40% complete. The agency has estimated launch by the end of April but has not provided a date or timeline for when refunds would be paid.
A few days earlier, CBP had informed Court of International Trade Judge Richard Eaton, who ordered the refunds on March 4, that it was currently unable to comply with his order to refund but would work on a solution.
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By revamping its Automated Commercial Environment technology, CBP “is confident it can develop and implement” a system to process the mandated tariff refunds.
The new system, called Consolidated Administration and Processing of Entries (CAPE), will allow importers and customs brokers to submit refund requests through the ACE portal. CBP has indicated that CAPE will launch in stages but has not provided a timeline for when refunds would be paid.
Meanwhile, the administration is actively pursuing other tariff avenues:
- A blanket 10% global duty using Section 122 of the Trade Act of 1974 took effect on Feb. 24 and will expire July 24 without congressional action to extend it. At least one lawsuit has already been filed to challenge these Section 122 tariffs.
- The U.S. Trade Representative has announced multiple investigations of potential unfair trade practices and forced labor in more than 60 countries, a step toward imposing tariffs under Section 301, a law that has withstood legal challenges and provides a longer-term method that does not require congressional action.
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With the Association’s Legislative Education and Action Day coming up April 21, PPAI will continue to advocate for predictable and balanced trade frameworks that support U.S. decoration, logistics and distribution jobs, says Alok Bhat, market economist and PPAI’s research and public affairs lead.
“In coordination with our lobbying partner, Thorn Run Partners, we are reinforcing Capitol Hill messaging that trade predictability protects American jobs across decoration, logistics and distribution,” Bhat says, “and we are closely monitoring any congressional action related to tariff authority.”
