📢 Client Advisory: Transition to Electronic Duty Refunds

Background

On March 25, 2025, the White House issued an Executive Order requiring the Federal Government to phase out paper checks for all disbursements by September 30, 2025. This shift includes refunds from U.S. Customs and Border Protection (CBP).

What’s Changing

Starting this fall, importers will no longer receive duty refunds by check. Instead, CBP will deposit refunds electronically through its Automated Clearinghouse (ACH) Refund Program. This program connects directly to your company’s bank account, ensuring that refunds are issued faster and with fewer risks compared to mailed checks.

Why It Matters

• Reduced Delays: Payments arrive within days of liquidation instead of waiting on the mail.
• Lower Risk: Direct deposits eliminate the chance of lost or stolen refund checks.
• Direct to Importer: Funds go straight into your account, not via third parties.
• Better Oversight: Participants can opt into platforms like IPP or ACE to track refund activity.How to Get ReadyTo receive refunds electronically, importers must complete CBP’s ACH Refund Enrollment Form. Enrollment requires a valid Tax Identification Number (TIN or SSN). Each suffix with its own bank account will need a separate application, or you can consolidate refunds into a single account by listing all suffixes.