What You Need to Know About the ACH Refund Program

What You Need to Know About the ACH Refund Program

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As international trade evolves, so do the systems that support it. A major upcoming change is the U.S. Federal Government's plan to eliminate paper checks for all disbursements, including duty refunds issued by U.S. Customs and Border Protection (CBP), by September 30, 2025. This shift presents both challenges and opportunities for importers.

To support this transition, CBP offers the Automated Clearinghouse (ACH) Refund Program, a free service that deposits refunds directly into importers' bank accounts. While it complements the ACH payment system used for customs fees, the refund program operates independently. Even if a company is enrolled in ACH for payments, a separate application is required to receive refunds electronically.

Importers do not need to be enrolled in ACH duty payments to qualify, making the program accessible to a broader range of businesses. Refunds are sent directly to the importer's bank account not to third parties, such as customs brokers, ensuring greater control and security.

For companies with multiple divisions or IRS numbers, separate applications must be submitted for each TIN suffix if different bank accounts are used. Alternatively, one application may include a list of suffixes if a single account is preferred.

Refunds are typically initiated on the Monday after liquidation, with deposits arriving the next business day. To track and reconcile payments, importers can use the Invoice Processing Platform (IPP) or access the REV-603 Trade Refund Report via the ACE Portal. Both tools provide detailed data, including refund amounts, dates, and associated customs entry numbers.

Key Benefits of the ACH Refund Program

• Speed: Deposits typically arrive within two business days of liquidation.
• Security: Payments go directly to your bank account, reducing the risk of lost or misdirected checks.
• Flexibility: Enrollment in ACH duty payments is not required to receive refunds.
• Visibility: Opting into IPP during enrollment enables email alerts and access to refund data.

To enroll, importers must submit the ACH Refund Enrollment Form through CBP's National Finance Center. Use your company's TIN or SSN as the vendor ID; Customs Assigned Numbers are not eligible.

The ACH Refund Program is a proactive step toward modernizing customs processes and enhancing the importer experience. Enrolling now ensures uninterrupted refund processing and allows businesses to benefit from faster, more secure, and transparent electronic payments.

Contact your local Expeditors representative today to learn how the ACH Refund Program can help facilitate duty refunds for your business.