U.S. tells tariff refund judge it can’t comply with order

CBP appeared to have all the data it needs to rapidly issue refunds through the process it has always used, albeit on a much larger scale, said one judge. Photo by JOHANNES EISELE/AFP via Getty ImagesArticle contentA United States Customs and Border Protection official told a federal judge on Friday that the agency can’t comply with a court order to stop processing import duties that include President Donald Trump’s emergency levies that were struck down by U.S. Supreme Court.Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentCBP is instead “making all possible efforts” to create an automated refund system that “will be simpler and more efficient” than the current process and may be ready for use in as soon as 45 days, according to an affidavit filed with the judge by Brandon Lord, a CBP executive director.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.We apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentArticle contentThe move follows a Wednesday order by Judge Richard Eaton, who sits on the federal trade court in New York, to remove Trump’s emergency tariffs from its massive backlog of importers’ paperwork. The judge said that doing so would make future refunds easier and he questioned why the government hadn’t already stopped after the Supreme Court’s ruling last month.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentLord said in his affidavit that the current automated system that processes hundreds of thousands of import entries each week cannot siphon out entries that include billions of dollars in tariffs that were collected by the Trump administration under the International Emergency Economic Powers Act, or IEEPA, as the judge ordered.Article content“CBP is now facing an unprecedented volume of refunds,” Lord said in the filing. “Its existing administrative procedures and technology are not well suited to a task of this scale and will require manual work that will prevent personnel from fully carrying out the agency’s trade enforcement mission.”Article contentIn a six to three decision, the Supreme Court found that Trump unlawfully used IEEPA to impose so-called reciprocal tariffs on goods entering the country. Since then questions have swirled around when and how importers may get refunded nearly US$170 billion in IEEPA tariffs.Article contentArticle contentEaton had ordered CBP to remove the IEEPA tariffs from importers’ paperwork before each entry is closed out in a process known as liquidation. In his filing, Lord said such a move isn’t possible, citing the need for what he described as extensive manual labour that isn’t realistic.Article contentRead More Supreme Court rules against Trump tariffs, but Canadian companies aren't out of the woods just yet These eight charts show 'rupture' with Canada under Trump's tariffs Article content“Currently, it is not possible for CBP to immediately prevent any additional entries from liquidating without IEEPA duties,” Lord said.Article contentA hearing on the matter on Friday morning in the Court of International Trade in Manhattan was closed to the public. The judge previously expressed skepticism about the Justice Department’s assertion that the refund process would be difficult, saying that CBP appeared to have all the data it needs to rapidly issue refunds through the process it has always used, albeit on a much larger scale.Article contentDuring a Wednesday hearing, Eaton said that the refund process should “not result in a mess” and that “every single cent of IEEPA duties that was imposed must be refunded.”Article contentIn his affidavit, Lord said that CBP had identified about US$166 billion of IEEPA duties that were collected from more than 330,000 importers with 53 million individual entries. About 20.1 million entries remain unliquidated, he said.Trending Bank of Canada governor warns of growing risks to financial stability Economy U.S. aluminum buyers hunt for alternatives as Iran war upends global supply Commodities South Bow confirms open season for new pipeline to the U.S. using legacy Keystone XL permits Oil & Gas Beer, wine sales fall even more, putting tax revenues on the rocks, but one boozy drink is on the rise Retail & Marketing Posthaste: Canadians are paying more than lip service to Buy Canada — and now the numbers prove it News Article contentThe CBP’s “existing administrative procedures and technology are not well suited to a task of this scale and will require manual work that will prevent personnel from fully carrying out the agency’s trade enforcement mission,” Lord said in the filing.Article contentThe CBP official also said that such a process would result in personnel being “redirected from responsibilities that serve to mitigate imminent threats to national security and economic security.”Article contentThe new automated process that CBP said it’s developing will be faster, Lord said, because it will issue consolidated refunds to individual importers rather than refunding millions of separate payments.Article contentBloomberg.comArticle contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Play VideoArticle contentShare this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. 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