New ACE Functionality Could Aid Tariff Refunds
U.S. Customs and Border Protection told the Court of International Trade in a March 6 filing that it is not currently prepared to process court-ordered refunds of tariffs imposed under IEEPA but could have the Automated Commercial Environment programmed to do so within the next 45 days.
The CBP filing indicated that it would take an enormous amount of time and resources to issue IEEPA tariff refunds under existing agency systems and processes. However, CBP said it is “confident that it can develop and implement new ACE functionality that will streamline and consolidate refunds and interest payments on an importer basis” rather than issuing more than 53 million separate entry-specific refunds. CBP anticipates that this new functionality will require minimal submissions from importers and involve the following steps.
- The importer files a declaration in ACE that includes a list of entries on which IEEPA duties were paid.
- ACE runs a series of validations on each entry within the declaration and automatically recalculates the duty owed without the IEEPA tariffs (with applicable interest).
- CBP verifies the declaration and processes refunds as soon as practicable.
- ACE automatically finalizes (liquidates or reliquidates) the entries.
- ACE automatically aggregates the refunds with interest by importer and liquidation date.
- CBP certifies the refunds.
- The Treasury Department issues IEEPA refunds electronically.
The filing said CBP is “making all possible efforts” to have this new functionality ready for use in 45 days. In response, Judge Eaton of the CIT suspended his previous order that CBP process IEEPA tariff refunds “to the extent that it directs immediate compliance.”
Importers Should Act to Receive Refunds Electronically
However, CBP also indicated that even once the ACE functionality is in place, importers may not receive IEEPA tariff refunds unless they have completed the set-up process to receive refunds electronically, as required by a recent CBP rule change. CBP noted that of the 330,566 importers that have paid IEEPA duties or duty deposits, only 21,423 entities (mostly importers or their customs brokers) have completed this process so far. “Until importers complete the process to receive refunds electronically,” CBP warned, “the refunds will be rejected.”
ST&R has produced this video (which is free to view, though registration is required) providing a practical, step‑by‑step walkthrough of how to ensure your company is fully enrolled for electronic refunds through the ACE Secure Data Portal.
Other Steps Importers Should Take
These developments are not the last word on IEEPA tariff refunds. As a result, ST&R still advises importers to protest liquidations within 180 days. Importers should also consider filing suit at the CIT for refunds, especially for entries that have finally liquidated, in which case a suit may be the only path to obtaining refunds.
For more information or assistance, please contact attorney Jason Kenner at (212) 549-0137 or via email. You can also contact us at messages@strtrade.com or via your usual ST&R contact.
Copyright © 2026 Sandler, Travis & Rosenberg, P.A.; WorldTrade Interactive, Inc. All rights reserved.