The United States will begin rolling out a system on 20 April to refund up to US$166 billion (A$254 billion) in tariffs to importers, following a landmark Supreme Court ruling that invalidated a key element of former president Donald Trump’s trade policy.
The refund mechanism, known as CAPE (Consolidated Administration and Processing of Entries), has completed primary development and entered intensive testing, according to a court filing by U.S. Customs and Border Protection (CBP) in the U.S. Court of International Trade.
The agency said the first phase will allow importers to receive consolidated electronic payments, rather than refunds processed shipment by shipment.
The rollout follows a February decision by the Supreme Court that found the Trump administration exceeded its authority under the International Emergency Economic Powers Act, a 1977 law designed for national emergencies, when imposing sweeping global tariffs.
The ruling triggered a wave of litigation from importers seeking reimbursement.
CBP said that as of 9 April, 56,497 importers had registered for electronic refunds covering about US$127 billion in tariff deposits – around 82% of eligible entries.
In total, more than 330,000 importers paid the tariffs across 53 million shipments, according to court documents.
In a sworn declaration filed with the U.S. Court of International Trade, CBP official Brandon Lord said the agency had completed development of the four core components of the CAPE system and shifted to “performance and scenario-based testing” ahead of launch.
The system’s claim portal is about 95% complete, while refund processing functions are about 90% finalised.
The agency plans to deploy the system in phases, initially focusing on straightforward cases involving recently imported goods and entries that have completed administrative processing.
Officials indicated importers may wait up to 45 days after launch before receiving funds.
Meanwhile, more complex cases remain unresolved.
CBP estimates that about US$2.9 billion in tariff deposits tied to entries subject to anti-dumping or countervailing duty orders will require manual processing.
Lord said this could “dramatically increase the workload” and divert staff from enforcement operations, as it involves adjusting records, transferring funds between accounts and issuing refunds individually.
The refund effort is being overseen by Judge Richard Eaton, as part of ongoing litigation before the trade court.
The court has also restructured the lead plaintiff in the case after the original claimant withdrew, underscoring the evolving nature of the proceedings.
Trade groups have urged members to prepare for the system’s launch, including verifying enrolment in CBP’s electronic portal.
Smaller importers, however, have raised concerns that administrative costs could outweigh potential refunds, particularly for lower-value claims.
The CAPE rollout comes amid continued volatility in US trade policy.
After the court ruling, Trump criticised the decision and introduced a new round of tariffs under separate legal authority, which are also being challenged in court.
Analysts note the juxtaposition of large-scale refunds with new tariff measures highlights ongoing uncertainty for importers navigating U.S. trade regulations.
Further details on the CAPE system and refund eligibility are expected to be published through CBP’s official channels as the launch date approaches.
