CBP Transitions to Mandatory Electronic Refunds: What Importers Need to Know
As part of a broader push to modernize federal financial systems, U.S. Customs and Border Protection (CBP) has officially transitioned to issuing all mid-cycle and duty refunds exclusively via the Automated Clearing House (ACH). This change, which became effective in early February 2026, marks the end of paper check processing for most refund types.
The Policy Shift
This transition is rooted in the Executive Order on Modernizing Federal Payments, which directed agencies to eliminate outdated manual processes in favor of secure, digital alternatives. By moving to electronic disbursements, CBP aims to reduce the administrative burden of lost or stolen checks and significantly speed up the delivery of funds to the trade community.
What This Means for Importers
If your company is owed a refund—whether from a clerical error, a successful protest, or a reconciliation entry—CBP will no longer mail a physical check to your address on file. Instead, the funds will be deposited directly into your designated bank account.
To avoid delays in receiving your money, it is now mandatory for importers to have an active ACH Refund profile on file with CBP. Without this electronic link, refunds may be held in limbo until the proper banking information is provided.
Beyond Refunds: The Benefits of the ACE Portal
While setting up ACH is the immediate priority, this shift highlights the importance of maintaining an active presence on the Automated Commercial Environment (ACE) Secure Data Portal. Registering and managing your account in ACE offers several key advantages beyond just receiving payments:
- Real-Time Data: Access your import history and duty payment records instantly.
- Periodic Monthly Statements (PMS): Streamline your cash flow by paying duties on a monthly basis rather than entry-by-entry.
- Protest Tracking: Submit and monitor the status of administrative protests and post-summary corrections digitally.
Next Steps & Official Resources
Importers should verify their banking details via CBP Form 4842 or through their ACE portal settings immediately. For further details on the transition, you can review the following official communications:
- Executive Order on Modernizing Federal Payments
- CBP Official Announcement on Electronic Disbursememts
- CSMS #638210: Mandatory ACH Refund Enrollment
Navigating these digital updates can be complex. If you need assistance setting up your ACH profile, navigating the ACE portal, or have questions about how these changes affect your specific shipments, please reach out to us.
Ken Hamanaka Co., Inc. Email: sales@kenhamanaka.com
Phone: 310-216-4286