U.S. Customs Agency Progresses on Tariff Refund System

Between 40% and 80% of $166 billion in illegal tariff payments to be refunded

Mar. 12, 2026 at 10:32pm

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The U.S. government's system for refunding $166 billion in illegal tariff payments with interest is between 40% and 80% complete, according to a court filing from a top customs official. The agency is developing a four-part system called CAPE to accept refund claims, process them in bulk, review them, and issue refunds.

Why it matters

The refund system is part of a court order to return the billions in tariff payments that were deemed illegal. This is a significant undertaking by the U.S. Customs and Border Protection agency to comply with the court directive and provide relief to businesses and individuals who were improperly charged the tariffs.

The details

Brandon Lord, an official with U.S. Customs and Border Protection, stated in a court filing that the agency is developing a four-part system called CAPE to handle the refund process. This includes accepting refund claims, processing them in bulk, reviewing the claims, and issuing the refunds.

  • The court filing was made on March 12, 2026 to comply with an order issued the previous week by Judge Richard Eaton.

The players

Brandon Lord

An official with the U.S. Customs and Border Protection agency.

Judge Richard Eaton

The judge who issued the order for the refund of the $166 billion in illegal tariff payments.

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What they’re saying

“The U.S. government's four-part system for refunding $166 billion in illegal tariff payments with interest is between 40% and 80% complete.”

— Brandon Lord, U.S. Customs and Border Protection Official

What’s next

Judge Eaton will continue to oversee the refund process and ensure the U.S. Customs and Border Protection agency meets its obligations under the court order.

The takeaway

This refund system is a significant undertaking by the U.S. government to comply with a court order and provide relief to businesses and individuals who were improperly charged billions in tariffs. The progress made so far, between 40-80% complete, shows the agency's commitment to efficiently processing the refunds.