US Customs and Border Protection (CBP) has presented its plan for issuing tariff refunds, but uncertainties remain.
Judge Richard K. Eaton of the Court of International Trade (CIT) recently ruled that all amounts paid must be refunded, with interest accruing for each month the refunds are delayed.
In response, CBP filed a declaration in Atmus Filtration outlining its plan to calculate and provide refunds. The declaration stated that CBP is designing a new claims portal — Consolidated Administration and Processing of Entries (CAPE) — in its recordkeeping software. The new system will have a claims portal, mass processing capacity, and the ability to review and liquidate or reliquidate entries and provide refunds.
Zack Hadzismajlovic, head of McCarter & English’s Global Trade practice, told Tax Notes that “the unliquidated entries will benefit from the new system inasmuch as it should be a streamlined submission and verification protocol.” However, there is a fear that the phased rollout is merely “a way of keeping Judge Eaton’s order suspended by showing progress without actually completing the full task,” he added. If that’s the case, then refunds for the already liquidated entries will have less success under the new system and “may ultimately have to be resolved in court,” according to Hadzismajlovic.