Appeals court halts Customs chief’s testimony on tariff refunds

A federal appeals court on Thursday agreed to halt an order requiring the head of U.S. Customs and Border Protection (CBP) to testify next week about tariff refunds.

The Trump administration is fighting the order, saying a judge overstepped by compelling CBP Commissioner Rodney Scott to show up in his New York City courtroom on Tuesday.

The U.S. Court of Appeals for the Federal Circuit’s unsigned order halts his testimony until it resolves the government’s arguments.

The Trump administration is in the process of refunding tens of billions of dollars collected under the president’s emergency tariffs that were struck down by the Supreme Court earlier this year. Businesses started receiving their refunds last month.

U.S. Court of International Trade Judge Richard K. Eaton is overseeing the refund process and has been holding a series of closed-door hearings in recent weeks.

Court filings show more than $20 billion worth of refunds has already been processed, but the government has recently begun appealing the universal nature of Eaton’s refund orders.

The judge previously raised concerns about the government’s intentions, demanding Scott testify on Tuesday.

“Commissioner Scott’s testimony is necessary to ascertain if it is the Government’s policy to return all of the unlawfully collected duties either by complying with the court’s order, or by some other means — that is, if it is the Government’s policy to refund the duties to importers both large and small. There is $166 billion involved,” Eaton wrote last week.

As the government sought the Federal Circuit’s intervention, Eaton stood firm. He sent the government two letters defending himself saying it “has every reason to be proud” of its refund portal but that he disagreed with portions of its filing.

“Kindly transmit a copy of this letter to the Court of Appeals for the Federal Circuit, which may want to consider these reasons why Commissioner Scott’s presence is necessary.”