CBP to Eliminate Paper Refund Checks in Favor of ACH Electronic Payments.

U.S. Customs and Border Protection (CBP) will issue all refunds electronically via Automated Clearing House (ACH). This will largely eliminate the use of paper Treasury checks, subject only to limited waiver-based exceptions.

Effective February 6, 2026, and as published on January 2, 2026, CBP amended the regulation to mandate the electronic refunds and align CBP's payment practices with federal electronic funds transfer requirements. This requirement is outlined in CBP’s Electronic Refunds Interim Final Rule, published in the Federal Register on January 2, 2026, which amends CBP regulations to mandate electronic refunds and aligns CBP’s payment practices with federal electronic funds transfer requirements.

To support implementation of the new rule, CBP has enhanced functionality within the ACE Secure Data Portal. As announced in CSMS #67270895, CBP has deployed an automated ACH Refund Authorization tool and automated the ACE Portal importer account application, which is required to access ACH refund enrollment. Importers and other parties who may receive CBP-issued refunds after February 5, 2026, should review the Electronic Refund Enrollment Reference Sheet and complete any required ACH setup in advance to avoid refund delays.

The interim final rule also clarifies refund processing where an importer has designated a third party—such as a licensed customs broker or attorney— to receive refunds on their behalf. Refunds issued to such authorized parties will likewise be made electronically, provided the designated party is properly enrolled in ACH through ACE. Importers should confirm both their own ACH enrollment and the enrollment status of any designated third-party recipients to ensure uninterrupted receipt of CBP refunds once paper checks are phased out.

As part of the ACH Refund application, all applicants are required to use a U.S. bank account and must provide the relevant account information. Once an application for ACH Refund is successfully submitted and approved in the ACE Portal, all future refunds will be issued electronically to the designated U.S. bank account ( i.e., either the U.S. bank account of the importer or the U.S. bank account of the designated third party).

This transition to electronic refunds will provide several benefits to both the public and CBP. Electronic payments are much faster than check payments and significantly less expensive. Electronic refunds will be deposited within one to two business days in the recipient's designated bank account, compared to three or more days if a U.S. Treasury check is mailed. Electronic payments are also safer than paper checks and are less likely to have post-payment issues, such as claims of missing or misdelivered payments or check fraud.

On January 6, 2026, U.S. Customs and Border Protection (CBP) published a bulletin via its Cargo Systems Messaging Service (CSMS) announcing a series of calls to help the trade community prepare for the mandatory transition to electronic issuance of refunds via Automated Clearing House (ACH). According to the CSMS bulletin, the calls will be held on the following dates:

• Wednesday, January 14, 2026, at 2:00 PM
• Wednesday, January 28, 2026, at 2:00 PM
• Wednesday, February 11, 2026, at 2:00 PM.

The CSMS bulletin provides links to join each call. The CSMS bulletin can be found HERE.

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