CBP ACE system preparing to process IEEPA tariff refunds ordered by Court of International Trade

U.S. Customs and Border Protection (CBP) informed the Court of International Trade (CIT) on March 6 that the agency is not yet ready to process IEEPA tariff refunds, but is preparing updates to its Automated Commercial Environment (ACE) system that would allow refunds to begin within approximately 45 days.

The statement follows the CIT order issued March 4, which directed CBP to begin removing IEEPA duties from import entries and process refunds to importers.

Why CBP Cannot Yet Process IEEPA Tariff Refunds

In a declaration submitted to the court and signed by Brandon Lord, Executive Director of the CBP Office of Trade, the agency explained that its current systems are not configured to process the large number of refunds required.

CBP stated that it must first develop new functionality within ACE, the government’s primary system for processing U.S. import entries and duty payments.

The agency estimates that system updates could be completed within approximately 45 days.

Court Order Requires CBP to Remove IEEPA Duties

The court order requires CBP to adjust import entries that were affected by the now-invalidated tariffs imposed under the International Emergency Economic Powers Act (IEEPA).

Specifically, the agency must:

  • Liquidate unliquidated entries without including IEEPA duties

  • Reliquidate entries that have already liquidated but are not yet final

  • Issue refunds to importers who paid the duties

This order follows the Supreme Court decision that invalidated IEEPA tariffs, triggering a complex refund process across millions of import entries.

How CBP Plans to Process IEEPA Refunds

According to CBP’s filing, the agency plans to build new ACE functionality that will streamline the refund process.

Without this update, CBP would need to process over 53 million individual refund transactions, many of which would go to the same importers.

Instead, the new system will allow refunds to be processed on an importer-level basis.

CBP outlined the expected process:

  1. Importers will submit a declaration in ACE listing entries where IEEPA duties were paid

  2. ACE will automatically validate the entries and recalculate duties without IEEPA tariffs

  3. CBP will review and verify the declaration

  4. ACE will liquidate or reliquidate the affected entries

  5. Refund amounts will be aggregated by importer and liquidation date

  6. CBP will certify the refunds

  7. The U.S. Treasury Department will issue electronic refund payments

Refund Process Could Take Months

Even after the system is updated, CBP indicated that processing refunds for all affected importers could take several months or longer.

The scale of the task is significant given the millions of import entries affected by IEEPA tariffs.

CBP’s proposed system is intended to reduce administrative complexity and avoid issuing tens of millions of individual refund payments.

What Importers Should Monitor

Importers affected by IEEPA tariffs should continue monitoring several developments:

  • ACE system updates by CBP

  • Additional guidance from CBP and the Court of International Trade

  • Potential appeals or legal challenges

  • Instructions on how importers must submit refund declarations

Further clarification is expected as the court continues to oversee the refund process.