CBP’s tariff refund process will take up to 45 days to deliver returns
Summary
U.S. Customs and Border Protection is developing a tariff refund system for IEEPA-related duties that will require up to 45 days to process returns following entry liquidation or reliquidation. The system is not yet operational, and refunds will only be issued after the formal customs liquidation process completes, according to a court filing. This applies specifically to tariffs imposed under the International Emergency Economic Powers Act.
Why It Matters
For manufacturers who import raw materials, components, or finished goods subject to IEEPA tariffs, the 45-day refund window represents a working capital constraint that requires careful cash flow planning. Liquidation timelines in customs processing can themselves run months before the 45-day clock even starts, meaning manufacturers could be carrying overpaid duty costs on their balance sheets for an extended period. Procurement and finance teams should audit current import entries to identify refund-eligible classifications and queue submissions as soon as the CBP system goes live -- delays in filing will compound the cash recovery lag. Operations managers sourcing domestically as a tariff hedge should weigh this liquidity drag against the cost differential of alternative suppliers.