CBP Will Issue Refunds Only Electronically Starting Feb. 6
Effective Feb. 6, CBP is transitioning to electronic refunds instead of offering refunds by check. The agency is set to publish an interim final rule in the Federal Register outlining how it will do so, noting that the third party designated on CBP Form 4811 will continue to be valid after the transition goes fully into effect.
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The interim final rule means that CBP will issue all refunds electronically starting on Feb. 6, although CBP will be taking comments on the rule through March 3. The rule 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, CBP said.
Following Feb. 6, CBP won't issue any refunds by check unless a waiver has been approved.
According to the document, the CBP Form 4811 on file will remain a valid third-party designation, authorizing CBP to issue an electronic refund to the designated third party.
"The designated third party must complete the ACH Refund application in order to receive the electronic refund. If the designated third party is not an ACH participant, the refund will default to the importer’s ACH account," CBP said. Importers who aren't already enrolled in the ACH Refund program must submit an application for an ACE Portal account if an account doesn't already exist, CBP continued.
CBP also said it's the importer’s responsibility to ensure the accuracy of the third-party designation and to contact CBP if any information needs to be updated or the designation is revoked.
The transition to distributing refunds electronically follows President Donald Trump's March executive order requiring that the federal government transition from paper checks to electronic payments for all federal disbursements, according to the notice (see 2506200051). Historically, the majority of CBP refunds for the overpayment of customs duties, taxes and fees were transmitted as paper checks issued by the Department of the Treasury and mailed to the address of the importer, the notice said, with an importer designating a third party, such as a licensed customs broker, to receive refunds on the importer's behalf via CBP Form 4811.
"While it has been available for some time, the issuance of electronic refunds via ACH is voluntary and has been relatively limited in scope due to technological limitations," CBP said in the notice, adding that the number of refunds that CBP has issued electronically has gradually increased so that approximately 30% of refunds were issued electronically in 2024 and 2025.
The agency continued, "CBP has been modernizing payment processes by reducing manual processes generally, and this rule specifically focuses on the management of electronic refunds through ACE."