CBP Mandates Electronic Refunds, Phases Out Paper Checks

U.S. Customs and Border Protection will require nearly all customs refunds to be issued electronically under an interim final rule scheduled for publication Jan. 2, 2026. The rule takes effect Feb. 6, 2026, with limited waivers available for recipients who meet Treasury hardship criteria.

The regulation amends multiple CBP provisions to make electronic funds transfer—primarily via Automated Clearing House—the default method for refunds of duties, taxes, fees, and interest. Paper checks will be issued only in rare cases approved under Treasury regulations.

CBP said the shift aligns with federal law requiring electronic payments and with a March 2025 executive order directing agencies to modernize government disbursements. The agency cited faster delivery, reduced fraud risk, and lower administrative costs. Electronic refunds are expected to be deposited within one to two business days, compared with longer delivery times for mailed checks.

Importers and other refund recipients must enroll through the Automated Commercial Environment portal and provide U.S. banking information. Foreign importers without U.S. accounts must either open one or designate a third party, such as a customs broker, to receive refunds on their behalf.

CBP estimated the rule will generate net cost savings of roughly $1–2 million annually over time, largely by eliminating printing, mailing, and fraud-related costs associated with Treasury checks. Comments on the interim final rule will be accepted for 60 days after publication. 

Electronic Refunds