CBP Mandates Electronic Refunds Effective February 6

Jan. 5, 2026
By: Chaney A. Finn

U.S. Customs and Border Protection (CBP) will issue all refunds electronically, effective February 6, 2026, except where a valid waiver applies. The transition away from paper checks applies to all importers, brokers, filers, sureties, service providers, facility operators, foreign-trade zone operators and carriers, and any designated third parties listed on CBP Form 4811 as outlined in the interim final rule. The announcement follows President Trump’s executive order to transition the federal government to electronic payments for all federal disbursements via ACH (Automated Clearing House).

CBP’s electronic refund transition requires importers to have an ACE (Automated Commercial Environment) Portal account to set up ACH. Once an ACE Portal account is established, Trade Account Users are instructed to add banking information in the ACH Refund Authorization tab within the importer sub-account view.

Importers may designate a third party, such as a licensed customs broker, to receive refunds on their behalf using CBP Form 4811 (Special Address Notification). CBP provides two methods to make this designation. Importers may submit CBP Form 4811 by email to their assigned Center of Excellence and Expertise (Center). If no Center has been assigned, the form may be sent to the Center that most closely aligns with the tariff number of the importer’s highest-valued commodity. Alternatively, importers may use the Notify Parties tab in the ACE Secure Data Portal by entering the required third-party information. According to the Federal Register notice, CBP deems use of the Notify Parties tab in the ACE Portal to designate a third party to be the electronic equivalent of CBP Form 4811 and a CBP-approved method to submit CBP Form 4811. If a designated third party is not enrolled in the ACH Refund program, CBP will default the refund to the importer’s ACH account.

After February 6, CBP will issue paper refunds only to parties that have received an approved waiver, which CBP expects to grant on a limited, case-by-case basis. CBP may grant a waiver only when an entity cannot receive electronic payments due to hardship or technical constraints.

Although the interim final rule goes into effect February 6, CBP is accepting public comments through March 3, 2026, via the Federal Register notice. Prior to this mandate, ACH refunds were offered on a voluntary basis due to technological limitations during CBP’s payment process modernization initiative. CBP gradually increased electronic refunds between 2024 and 2025 and has streamlined enrollment by adding an automated ACH refund authorization tool in the ACE Portal.

Should you have any questions regarding electronic refunds, designated third-parties, ACE Portal accounts, or any other trade-related questions, do not hesitate to contact any attorney at Barnes Richardson and Colburn.