A U.S. trade court judge has directed the federal government to begin refunding companies that paid tariffs the U.S. Supreme Court ruled unlawful last month.
Richard Eaton of the U.S. Court of International Trade said the government must start reimbursing importers who paid the duties under trade measures introduced during the presidency of Donald Trump. The refunds could amount to billions of dollars for affected businesses, according to a report by Reuters.
The order directs the U.S. Customs and Border Protection to determine the final cost of shipments that entered the United States without the disputed tariff applied. The agency has also been instructed to issue refunds to affected importers, along with interest.
When goods arrive in the United States, importers usually pay an estimated duty at the border. The exact amount is determined later through a process called “liquidation,” which generally takes place about 314 days after the shipment enters the country.
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During a court hearing, Richard Eaton instructed officials at U.S. Customs and Border Protection to complete this process without applying the tariffs that were ruled illegal. Doing so would automatically lead to refunds for companies that paid more than they owed.
“Customs knows how to do this,” Eaton said, adding that the agency regularly processes refunds in cases where importers have overpaid estimated duties.
U.S. Customs and Border Protection earlier told the court that issuing refunds would be highly complex because the tariffs affected a vast number of shipments.
In court filings, the agency said it may have to review more than 70 million import entries, with many of them likely requiring manual processing. Customs had requested up to four months to determine how it would manage the refund process.
Richard Eaton has scheduled another hearing on Friday to examine the agency’s plan for carrying out the refunds.