Beginning February 6, U.S. Customs and Border Protection (U.S. Customs and Border Protection) will transition to issuing all customs duty, tax, and fee refunds exclusively through electronic payment methods, ending the longstanding practice of issuing paper checks except in limited, approved circumstances.
The change will be formalized through an interim final rule scheduled for publication in the Federal Register. While the rule will take effect immediately, CBP will accept public comments through March 3
Who the Rule Applies To
The electronic refund requirement applies broadly across the trade community, including:
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Importers of record
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Licensed customs brokers and filers
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Sureties and service providers
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Facility and foreign-trade zone operators
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Carriers and designated third parties
After February 6, CBP will no longer issue refunds by check unless a waiver has been formally approved.
Third-Party Designations Remain Valid
CBP confirmed that existing third-party refund authorizations submitted via CBP Form 4811 will remain valid following the transition. This means that refunds can continue to be directed to a designated third party—such as a customs broker—provided the required electronic payment setup is completed.
To receive electronic refunds, the designated third party must be enrolled in CBP’s Automated Clearing House (ACH) Refund program. If a designated third party is not an ACH participant, refunds will automatically default to the importer’s ACH account.
Enrollment and Compliance Requirements
Importers or third parties not currently enrolled in the ACH Refund program must:
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Apply for an ACE Portal account, if one does not already exist
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Complete the ACH Refund application
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Verify that all third-party designation information on file is accurate and up to date
CBP emphasized that it is the importer’s responsibility to ensure the accuracy of refund authorizations and to notify the agency promptly if a designation needs to be updated or revoked.
Background and Modernization Effort
The transition to electronic-only refunds follows a March executive order requiring all federal agencies to move away from paper checks and adopt electronic disbursement methods. Historically, most CBP refunds were issued as paper checks by the U.S. Department of the Treasury and mailed to importers or their designated agents.
Although electronic refunds via ACH have been available for several years, participation has remained limited due to earlier system constraints. CBP reports that approximately 30% of refunds were issued electronically in 2024 and 2025, a figure expected to increase to 100% following implementation of the new rule.
According to CBP, the change is part of a broader modernization initiative aimed at reducing manual processes and improving refund management through the Automated Commercial Environment (ACE).
What Importers Should Do Now
With the February 6 deadline approaching, importers and brokers should:
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Confirm ACH enrollment status
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Review CBP Form 4811 designations
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Ensure ACE Portal access is active
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Coordinate internally to prevent refund delays
Failure to prepare could result in delayed refunds or misdirected payments once the electronic-only system is in effect.
