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As US Customs Refines Its Tariff Refund System, Who Gets in to Apply Is Under Dispute
The appeal follows a CIT order directing universal refunds, as CBP has already accepted about $85 billion in potential tariff claims.
On June 2, the Justice Department appealed a Court of International Trade order requiring universal tariff refunds, introducing uncertainty for importers as the government previously estimated total refunds could reach $166 billion.
The Supreme Court previously ruled that President Donald Trump improperly imposed these tariffs under emergency powers, prompting Judge Richard Eaton to order Customs and Border Protection to create a universal refund system.
Eaton scheduled a Tuesday hearing to assess refund timelines, though the Federal Circuit temporarily suspended on Thursday the requirement for CBP Commissioner Rodney Scott to testify regarding the agency's process.
While the agency has directed the Treasury Department to issue $20.6 billion in refunds, the Justice Department argues that only companies that filed lawsuits are legally entitled to seek these funds.
Michael Lowell, chair of the Global Regulatory Enforcement Group at Reed Smith, warns that the government is creating barriers for importers, risking recovery for those without pending cases in the International Trade court.