The Trump administration said it was unable to process tax refunds because of computer problems.

U.S. Customs and Border Protection says it is currently unable to comply with orders to refund billions of dollars in tariffs imposed by President Donald Trump. Filing on FridayCBP Executive Director Brandon Lord said the agency’s digital import processing system “Not suitable for work at this level” As previously reported by CNBC.

CBP admissions occur after The Supreme Court struck down customs duties. It was imposed by Trump under the International Emergency Economic Powers Act (IEEPA) last month. This week the International Trade Court ruled that importers were affected by the tariffs. Have the right to receive a refund plus interest.CBP estimates it will collect approximately $166 billion in IEEPA taxes as of March 4, 2026.

The company likes Nintendo, FedExand Costco filed a lawsuit against the US government in the International Trade Court to recover customs duties that the Supreme Court deemed “illegal”

CBP said it is now processing imports through the Automated Commercial Environment (ACE) system. In filing the documents, Lord said it was using the department’s existing technology. It will take more than 4.4 million hours to process refunds for more than 53.2 million IEEPA-eligible items. Despite current restrictions, CBP said it is “confident” it can develop and roll out new capabilities to “improve and consolidate refunds and interest payments on an importer basis,” but this could take 45 days.

“The process will be simpler and more efficient than the existing function, and CBP will provide guidance on how to file refund statements in the new system,” Lord said.