CBP Says It Can't Comply: $166 Billion Refund Order Hits Technical Wall
In a formal declaration filed today during the CIT's closed “settlement conference,” U.S. Customs and Border Protection says it cannot immediately comply with Judge Eaton's order to refund IEEPA tariffs — and the numbers are staggering.
📊 The Numbers Are Staggering
These figures come from a sworn declaration by Brandon Lord, Executive Director of CBP's Trade Programs Directorate, filed March 6, 2026 in the Court of International Trade during the closed conference in Atmus Filtration, Inc. v. United States.
🏛️ What CBP Told the Court
“Unprecedented Volume”
CBP stated it faces an “unprecedented volume” of refunds following the Supreme Court's decision in Learning Resources, Inc. v. Trump. The agency says it does not currently have the capability to separate IEEPA entries from non-IEEPA entries in its automated systems.
Technical Barriers
- • Auto-liquidation conflict: The ACE system automatically finalizes entries every Friday at 2:00 AM. CBP cannot filter out IEEPA entries from this automated queue.
- • System capacity: ACE can only process 10,000 lines at a time. The order affects over 1.6 billion individual entry lines.
- • Bundled duties: Importers often combine different duty types on a single line, meaning officers must manually calculate and subtract the IEEPA portion for each entry.
- • Interest calculations: Law requires interest on refunds, which in many cases must be calculated by hand.
- • Electronic payment gap: A new rule requires all refunds to be electronic (ACH), but only ~21,000 of 330,000 affected importers have set up the necessary accounts.
339,000 Entries Already in the Queue
CBP revealed that approximately 339,000 entries containing IEEPA duties were already scheduled to auto-liquidate this morning (Friday at 2:00 AM) — before the conference even began. The agency cannot selectively halt these without stopping all liquidations.
⏱️ CBP's Proposal: 45 Days to Build Automated System
Rather than manual processing (4.4 million man-hours), CBP is asking Judge Eaton for 45 days to build new automated functionality within the ACE system. Here's what they're proposing:
Single declaration filing: Each importer would file one declaration listing all their affected entries.
Automated validation: ACE would validate entries against its records and calculate refund amounts including interest.
Consolidated payments: One ACH payment per importer, aggregating all their entries.
CBP says this automated path would save approximately 4 million hours of manual labor. The question is whether Judge Eaton — who ordered refunds “forthwith” — will accept a 45-day delay.
🚨 The ACH Enrollment Problem
Since February 6, 2026, CBP only issues refunds electronically via ACH. But only 21,000 of 330,000 affected importers (6.4%) have set up the necessary ACH accounts in the ACE Portal.
This means 93.6% of importers cannot currently receive refunds even if CBP had the technical ability to process them.
🎯 Action Required: Set Up ACH NOW
If you're an importer who paid IEEPA tariffs, enroll in ACH through the ACE Portal immediately. Do not wait for the refund system to be built. This is a prerequisite — no ACH account means no refund, regardless of the timeline.
📈 New 15% Global Tariff Coming
Treasury Secretary Scott Bessent said the administration is “likely” to introduce a new 15% global tariff in the coming days — up from the current 10% Section 122 rate. This would replace the invalidated IEEPA duties with tariffs imposed under a different legal authority.
Note: Section 122 tariffs are already being challenged by 24 state attorneys general and face a 150-day expiration cliff around July 23, 2026.
✅ What Importers Should Do RIGHT NOW
Enroll in ACH via ACE Portal
This is non-negotiable. 93.6% of importers are not set up to receive electronic refunds. Do this today.
Pull your ACE reports
Identify all entries under HTS headings 9903.01.xx and 9903.02.xx. Calculate your total IEEPA duties paid.
File protests for entries approaching 180-day deadline
Liquidated entries have a 180-day protest window. Once it closes, refund options narrow significantly.
Document everything
Preserve all entry summaries, payment records, and broker communications. You will need these for the declaration filing process.
Brief your customs broker
Make sure your broker understands the 45-day proposed timeline and is ready to file on your behalf when the system launches.
Estimate your refund
Use our free tools to understand what you could recover.
🔮 What Happens Next
Judge Eaton's Response
The ball is now in Judge Eaton's court. He ordered refunds “forthwith” — will he accept a 45-day delay? He could approve the proposal, set a shorter deadline, or order partial immediate processing while the system is built.
Government Appeal
DOJ is still expected to appeal Judge Eaton's universal refund order to the Federal Circuit. An appeal could seek a stay (freeze) of the refund process. However, the Federal Circuit already denied one stay request on March 2.
FedEx and Other Lawsuits
Several companies including FedEx have filed their own lawsuits seeking refunds. These cases could add pressure for faster processing or result in parallel refund tracks.
📬 Get IEEPA Refund Updates — Free
CIT proceedings, CBP guidance, refund timelines. No spam — only when something important happens.