On March 31, U.S. Customs and Border Protection (CBP) filed documents with the U.S. Court of International Trade, disclosing that a new process for tariff refunds is still under development. Currently, the new system could take up to 45 days from application acceptance to review, processing, and refund.
This news is crucial for importers who have already paid the relevant tariffs and are waiting for refunds. While the courts previously overturned the Trump administration's broad-based tariffs imposed under IEEPA, the issues of how the money will be refunded, who will receive it first, and how long it will take to arrive are still unresolved and have not yet reached the stage of "immediate payment."
What stage has the progress reached so far?
According to Reuters, a CBP official in charge of building the refund system stated:
- The new refund application portal, review, and processing system is approximately 60% to 85% in completion time.
- No specific date has been given for the official opening of applications.
- CBP previously mentioned a 45-day preparation target, which, based on the timeline, would likely fall in late April.
In other words, although the policy direction is clear, companies cannot treat refunds as cash already in their pockets in the short term.
Which applications will be processed first?
CBP also clarified the initial processing priorities. After the new system goes live, applications will be accepted in phases, with priority given to the following types of customs declarations:
- Customs declarations that have been liquidated (cleared and settled) within the past 80 days
- Customs declarations whose clearance status is suspended, extended, or under review
- Warehouse withdrawal entries
For importers, this means that not all historical declarations will be processed simultaneously. The actual refund process will vary significantly depending on the status of the documents.
How large is it?
Public documents show that:
- More than 330,000 importers of record have been involved in these IEEPA tariffs.
- Involving approximately 53 million shipments
- 26,664 importers have completed the electronic refund preparation process.
- This portion corresponds to approximately 78% of related customs duties, amounting to approximately US$120 billion.
Judging from the scale alone, this is not a small batch of refunds that can be processed quickly, and the subsequent queuing, review and arrival process will likely be lengthy.
Direct impact on enterprises
This message has three main impacts.
1) Don't be too optimistic about your refund expectations.
Many companies had previously interpreted the "court overturning of tariffs" as meaning "refunds will be issued soon." However, judging from the latest statement from CBP, the refund process is still under construction and is more like an "executable preparation phase" in the short term, rather than a phase of widespread refunds.
2) Cash flow pressure will continue for some time.
Companies that have already paid customs duties in advance, especially those with large import volumes and tight payment terms, will still have to bear the waiting period for refunds themselves in the near future. For small and medium-sized importers, this will directly affect their replenishment schedule, claims arrangements, and cash flow.
3) Document status will affect the refund order.
If the customs declaration has been closed or is currently under special customs status, it is more likely to be included in the priority batch. Conversely, documents with incomplete information or unclear status will be processed more slowly.
CZL Reminder
If you have a US import business, here are three things I recommend doing first:
- Group customs declarations involving IEEPA tariffs by status.
- Confirm in advance which documents have been liquidated and which are still under review/suspended.
- Do not arrange your cash flow for this refund as if it "will arrive in the near future".
Especially for companies that are already preparing to process refunds, claims, or account reversals, it is best to make financial arrangements based on a processing period of 45 days or even longer to allow for a buffer.
Source
- Reuters:US customs agency says tariff refund system progressing, but payments may take up to 45 days
If you need to assess the declaration, taxes, or shipping options for shipments to the United States, you can also use CZL first. Shipping cost inquiry tool Make a preliminary judgment.