Electronic Refunds

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<title>Federal Register, Volume 91 Issue 1 (Friday, January 2, 2026)</title>
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[Federal Register Volume 91, Number 1 (Friday, January 2, 2026)]
[Rules and Regulations]
[Pages 21-36]
From the Federal Register Online via the Government Publishing Office [<a href="http://www.gpo.gov">www.gpo.gov</a>]
[FR Doc No: 2025-24171]

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DEPARTMENT OF HOMELAND SECURITY

U.S. Customs and Border Protection

19 CFR Parts 24, 141, 159, and 174

[USCBP-2025-1076; CBP Dec. 25-18]
RIN 1685-AA36

Electronic Refunds

AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security.

ACTION: Interim final rule; request for comments.

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SUMMARY: This document amends the U.S. Customs and Border Protection
(CBP) regulations to reflect that, subject to limited exceptions, CBP
will issue all refunds electronically. This document explains the
process required to receive electronic refunds and the process to
receive paper checks in those rare instances where the recipient meets
the criteria for a waiver.

DATES: The interim final rule is effective February 6, 2026. Comments
regarding this interim final rule must be received by March 3, 2026.

ADDRESSES: Please submit comments, identified by docket number USCBP-
2025-1076, by the following method: Federal eRulemaking Portal at
<a href="http://www.regulations.gov">http://www.regulations.gov</a>. Follow the instructions for submitting
comments.
Instructions: All submissions received must include the agency name
and docket number for this rulemaking. All comments received will be
posted, without change, to <a href="http://www.regulations.gov">http://www.regulations.gov</a>, including any
personal information provided. For detailed instructions on submitting
comments and additional information on the rulemaking process, see the
``Public Participation'' heading of the SUPPLEMENTARY INFORMATION
section of this document.
Docket: For access to the docket to read background documents or
comments received, go to <a href="http://www.regulations.gov">http://www.regulations.gov</a>.

FOR FURTHER INFORMATION CONTACT: Nate DeRosa, Revenue Division, Office
of Finance, at (317) 298-1042 or <a href="/cdn-cgi/l/email-protection#2b4d5945064a4843594e4d5e454f585e5b5b44595f6b48495b054f4358054c445d">[email&#160;protected]</a>.

SUPPLEMENTARY INFORMATION:

I. Public Participation

Interested persons are invited to participate in this rulemaking by
submitting written data, views, or arguments on all aspects of this
interim final rule (IFR). U.S. Customs and Border Protection (CBP) also
invites comments that relate to the economic, environmental, or
federalism effects that might result from this IFR. Comments that will
provide the most assistance to CBP will reference a specific portion of
the IFR, explain the reason for any recommended change, and include
data, information, or authority that supports such recommended change.

II. Background

Section 1505(b) of title 19 of the United States Code (19 U.S.C.
1505(b)) generally requires CBP to refund any excess deposits of
duties, fees, and interest within 30 days of liquidation or
reliquidation. CBP has additional general authority to refund duties or
other receipts, found in 19 U.S.C. 1520 (e.g., in situations where
fees, charges, or exactions were erroneously collected or where excess
duties, fees, charges, or exactions were deposited or paid).\1\
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\1\ Certain statutes also provide CBP with specific authority
for refunds associated with repairs of vessels (see 19 U.S.C. 1466),
drawback (see 19 U.S.C. 1313), protests (see 19 U.S.C. 1514 and
1515), loss, deterioration, or damage to warehouse goods (see 19
U.S.C. 1563), countervailing duty investigations (see 19 U.S.C.
1671c-1671f, 1677g), and antidumping investigations (see 19 U.S.C.
1673c-1673f, 1677g).
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Section 3332(f)(1) of title 31 of the United States Code (31 U.S.C.
3332(f)(1)) generally mandates that all Federal payments made by the
government, other than payments made under the Internal Revenue Code of
1986, be made by electronic funds transfer. Electronic funds transfer
means any transfer of funds, other than a transaction originated by
cash, check, or similar paper instrument, that is initiated through an
electronic terminal, telephone, computer, or magnetic tape for the
purpose of, among other things, authorizing a financial institution to

[[Page 22]]

debit or credit an account. An Automated Clearing House (ACH) transfer
is an electronic funds transfer. 31 U.S.C. 3332(j)(1). The definition
of ``Federal payments'' in 31 U.S.C. 3332(j)(3) is inclusive of refunds
such as those issued by CBP.\2\ The requirement for electronic funds
transfers may be waived in cases where compliance imposes a hardship or
in other circumstances as may be necessary. 31 U.S.C. 3332(f)(2)(A).
The regulations implementing 31 U.S.C. 3332 are contained in 31 CFR
part 208, and specifically, the regulations related to the electronic
funds transfer waiver process are set forth in 31 CFR 208.4.
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\2\ Further, implementing regulations in section 208.2 of title
31 of the Code of Federal Regulations (31 CFR 208.2) expressly
include within the definition of ``Federal payment'' ``miscellaneous
payments including . . . overpayment reimbursements[.]''
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On March 25, 2025, President Trump issued Executive Order 14247,
Modernizing Payments To and From America's Bank Account, 90 FR 14001
(March 25, 2025), mandating the transition from paper checks to
electronic payments for all Federal disbursements and receipts by
digitizing payments to the extent permissible under applicable law. The
goals of the Executive Order are to defend against financial fraud and
improper payments, enhance the efficiency and security of Federal
payments, and reduce costs associated with paper-based payments by the
Federal government.\3\ Section 4 of the Executive Order articulates
exceptions and accommodations when electronic payment methods are not
feasible.
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\3\ A Fact Sheet accompanying the Executive Order, issued the
same day, explains the disadvantages of paper-based payments,
stating that mail theft complaints have increased substantially
since 2020, and check fraud has become more common, with banks
issuing about 680,000 reports of check fraud in 2022 (nearly double
the number from 2021). The Fact Sheet further notes that U.S.
Treasury checks are 16 times more likely to be reported lost or
stolen, returned undeliverable, or altered than an electronic funds
transfer, and that the maintenance of the physical infrastructure
and specialized technology for digitizing paper records cost over
$657 million in fiscal year 2024. See Fact Sheet: President Donald
J. Trump Modernizes Payments to and from America's Bank Account
available at <a href="https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-modernizes-payments-to-and-from-americas-bank-account/">https://www.whitehouse.gov/fact-sheets/2025/03/fact-sheet-president-donald-j-trump-modernizes-payments-to-and-from-americas-bank-account/</a>.
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Historically, the majority of CBP refunds for the overpayment of
customs duties, taxes, and fees were transmitted as paper checks issued
by the U.S. Department of the Treasury (U.S. Treasury) and mailed to
the address of the importer. An importer may designate a third party,
such as a licensed customs broker, via CBP Form 4811 (Special Address
Notification), to receive refunds on the importer's behalf. To
designate a third party as the recipient of a refund, CBP provides two
options. The importer may fill out and submit CBP Form 4811 via an
email message to the importer's assigned Center of Excellence and
Expertise (Center). If an importer has not yet been assigned to a
Center, CBP Form 4811 may be submitted to the Center that most closely
aligns with the tariff number of the importer's highest valued
commodity.\4\ The importer may also utilize the Notify Parties tab in
the Automated Commercial Environment (ACE) Secure Data Portal (ACE
Portal) by providing the required information for the designated third
party.\5\ CBP deems use of the Notify Parties tab in the ACE Portal to
designate a third party to be the electronic equivalent of CBP Form
4811 and a CBP-approved method to submit CBP Form 4811.
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\4\ See 19 CFR 101.10. See also CBP, Centers of Excellence and
Expertise Directory, available at <a href="https://www.cbp.gov/trade/centers-excellence-and-expertise-information/cee-directory">https://www.cbp.gov/trade/centers-excellence-and-expertise-information/cee-directory</a> (last updated
Nov. 21, 2025).
\5\ On January 2, 2026, CBP deployed a new functionality in the
ACE Portal that enables trade account owners to use the new ``Add
Notify Party'' button under the ``Notify Parties'' tab to designate
a third party.
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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.\6\ The number of refunds CBP
issues electronically has gradually increased in recent years, and in
2024 and 2025 approximately 30% of refunds CBP issued annually were
issued electronically. CBP has been modernizing payment processes by
reducing manual processes generally, and this rule specifically focuses
on the management of electronic refunds through ACE. This rule aligns
with the requirements of 31 U.S.C. 3332, the goals articulated in
Executive Order 14247, and CBP's ongoing modernization efforts.
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\6\ To participate in the ACH Refund program, an importer must
submit an ACH Refunds Enrollment Form via an email message to CBP's
Revenue Division. Once CBP has received and processed the enrollment
form, all refunds are issued electronically to the designated bank
account.
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III. Issuance of Electronic Refunds

Beginning February 6, 2026, CBP will issue all refunds
electronically (subject to certain exceptions under 31 CFR part 208).
This rule applies to refunds issued to all importers, brokers, filers,
sureties, service providers, facility operators, foreign trade zone
operators, and carriers,\7\ and any designated third parties listed on
CBP Form 4811. After this date, CBP will not issue any refunds by
check, unless a waiver has been approved.
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\7\ For simplicity's sake, and because the majority of the
parties affected by this rulemaking are importers, CBP uses
``importer'' in this document to mean importers, brokers, filers,
sureties, service providers, facility operators, foreign trade zone
operators, and carriers. Individuals and entities who are not
considered ``importers'' for purposes of this rulemaking, are owed a
refund and wish to receive the refund electronically via ACH, must
submit an application according to the instructions provided on
<a href="http://CBP.gov">CBP.gov</a> at <a href="https://www.cbp.gov/trade/automated/ach/refund">https://www.cbp.gov/trade/automated/ach/refund</a>.
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Importers who are currently enrolled in the ACH Refund program will
continue to receive electronic refunds via ACH without interruption.
Importers who wish to make any changes to the banking information
currently on file with CBP must complete the ACH Refund application in
the ACE Portal.\8\ Importers who are not already enrolled in the ACH
Refund program must submit an application for an ACE Portal account if
an account does not already exist.\9\ Once an ACE Portal account has
been created, the account owner must complete the ACH Refund
application in the ACE Portal under the ACH Refund Authorization tab to
provide CBP with the designated banking information consistent with 31
U.S.C. 3332(g). The account owner may also authorize full access to the
ACH Refund Authorization tab to another trade account user to enter the
designated banking information.\10\ If applicable, the third party
designated on CBP Form 4811 must also have an ACE Portal account and
complete the ACH Refund application. It is the importer's
responsibility to ensure that the designated third party completes the
ACH Refund application to allow CBP to issue electronic refunds to the
designated third party consistent with 31 U.S.C. 3332(g).
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\8\ CBP has developed the ACH Refund Authorization tab in the
ACE Portal for faster processing of ACH Refund applications. See New
Functionality Pertaining to Electronic Refunds in the Automated
Commercial Environment, 90 FR 45956 (Sept. 24, 2025).
\9\ The public may submit an ACE Portal application either by
completing the modernized application webform found at <a href="https://www.cbp.gov/trade/automated/getting-started/portal-applying">https://www.cbp.gov/trade/automated/getting-started/portal-applying</a> or by
sending the ACE Data Portal Account Application Form (found here:
<a href="https://www.cbp.gov/document/guidance/ace-secure-data-portal-account-application">https://www.cbp.gov/document/guidance/ace-secure-data-portal-account-application</a>) via email message to
<a href="/cdn-cgi/l/email-protection#7d1c1e18531c0d0d11141e1c091412130e3d1e1f0d5319150e531a120b">[email&#160;protected]</a>.
\10\ On December 16, 2025, CBP enhanced the ACE Portal to enable
trade account owners to authorize trade account users to utilize the
ACH Refund Authorization tab. For additional information, see CBP,
Trade Information Notice ACE Portal Updates to Enable Electronic
Refund Enrollment, available at <a href="https://www.cbp.gov/document/guidance/trade-information-notice-ace-portal-updates-enable-electronic-refund-enrollment">https://www.cbp.gov/document/guidance/trade-information-notice-ace-portal-updates-enable-electronic-refund-enrollment</a> (last modified Dec. 12, 2025).
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As part of the ACH Refund application, all applicants are required

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to use a U.S. bank account and must provide the relevant account
information.\11\ Once an application for ACH Refund is successfully
submitted and approved in the ACE Portal, all future refunds will be
issued electronically to the designated U.S. bank account (i.e., either
the U.S. bank account of the importer or the U.S. bank account of the
designated third party listed on CBP Form 4811).
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\11\ Importers without a U.S. bank account must either open a
U.S. bank account or designate a third party with a U.S. bank
account consistent with 31 U.S.C. 3332(g).
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It is important to note that a CBP Form 4811 that is on file with
CBP prior to the effective date of this rulemaking 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.\12\ If the designated third party is not an ACH participant,
the refund will default to the importer's ACH account. The importer has
an existing obligation under 31 U.S.C. 3332(g) to provide CBP with the
necessary banking information to receive refunds electronically;
failure to provide CBP with the requisite ACH banking information will
result in a certified refund being rejected. If CBP certifies a refund
for issuance within 30 days of the liquidation or reliquidation of the
entry, but is unable to deliver an electronic refund, either to the
importer or to a designated third party, solely due to the importer's
or designated third party's failure to provide CBP with the necessary
banking information to effectuate the electronic refund, no interest
will accrue under 19 U.S.C. 1505(d). For these rejected refunds, an
importer must complete the ACH Refund application and notify CBP's
Refunds Team at <a href="/cdn-cgi/l/email-protection#ddbbafb3f0bcbeb5afb8bba8b3b9aea8adadb2afa99dbebfadf3b9b5aef3bab2ab">[email&#160;protected]</a> to confirm the
application's completion and request that the rejected refunds be
issued and delivered to the designated bank account.\13\
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\12\ To coincide with the publication of this rulemaking, CBP
has updated CBP Form 4811 by replacing references to ``check'' with
``refund.''
\13\ The outstanding refunds and historical details regarding
refunds are available in the Refund ACE Report, which includes a
summary of the total number of outstanding refunds requested, the
total dollar amount requested in all outstanding refunds, and a
consolidated table of all outstanding refunds and relevant data for
the ACE account user's own refunds. The availability of the Refund
ACE Report in the ACE Portal was deployed via Federal Register
notice published on August 11, 2022. Enhanced Transparency and
Access to Information for Refund Requesters in the Automated
Commercial Environment (87 FR 49600) (Aug. 11, 2022).
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It is 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. CBP will make any necessary
changes as to the importer's third-party designation in the ACE Portal.
If an importer believes that one of the waiver criteria in 31 CFR part
208 applies and seeks payment of its refund via a U.S. Treasury check,
the importer must notify CBP's Revenue Division in writing at <a href="/cdn-cgi/l/email-protection#4c2a3e22612d2f243e292a3922283f393c3c233e380c2f2e3c6228243f622b233a">[email&#160;protected]</a>.
This transition to electronic refunds will provide several benefits
to both the public and CBP. Electronic payments are much faster than
check payments, and significantly less expensive. Electronic refunds
will be deposited within one to two business days in the recipient's
designated bank account compared to three or more days if a U.S.
Treasury check is mailed. Electronic payments are also safer than paper
checks and are less likely to have post-payment issues, such as claims
of missing or misdelivered payments or check fraud. For CBP, the
electronic issuance of refunds will result in a reduction in printing
and mailing costs as CBP expects only a small number of refund
recipients to meet the criteria in 31 CFR 208.4 to receive a refund via
a U.S. Treasury check. In addition, there will no longer be a need to
track, research, and reissue check refunds, or support check claim
adjudications, all of which will result in cost savings. Thus, CBP will
be able to utilize those resources for other important agency
priorities.

IV. Amendments to the Regulations

For the reasons discussed above, CBP is amending specific
regulations in parts 24 (Customs Financial and Accounting Procedure),
141 (Entry of Merchandise), 159 (Liquidation of Duties), and 174
(Protests) of title 19 of the CFR to reflect that CBP will issue
refunds electronically. In addition, CBP is making minor conforming
changes or edits where needed. The specific changes are discussed
below.

Part 24

The general authority citation for part 24 is revised to include a
reference to 31 U.S.C. 3332. In Sec. 24.5(a), dealing with filing
identification numbers generally, CBP is removing the phrase ``check
upon adjustment of a cash collection'' to align the provision with
CBP's transition to electronic refunds. In the same paragraph, CBP is
replacing ``Customs'' with ``CBP'' and updating the title of CBP Form
5106 as ``Create/Update Importer Identity Form'' to align the
regulation with the current title of the form.
Paragraphs (c)(8)(i), (e)(4)(iii), and (e)(4)(iv)(A) of Sec. 24.24
are being amended to state that approved Harbor Maintenance Fee (HMF)
refund payments will be made via ACH in accordance with 31 U.S.C. 3332,
unless a waiver condition in 31 CFR 208.4 is met, and to remove the
reference to refund payments via mail. In addition, CBP is correcting a
minor typographical error in the phrase ``if such use in not reflected
in the documents'' in the second to last sentence of Sec.
24.24(c)(8)(i) to read instead, ``if such use is not reflected in the
documents.'' (emphasis added).
The introductory text of Sec. 24.36(a), regarding refunds of
excessive duties, taxes, etc., states that when CBP finds that a refund
is due, a refund is prepared in the name of the person to whom the
refund is due (the payee). This provision is revised to state that if a
refund is owed, CBP will prepare the refund in the name of the person
to whom the refund is due, and issue it electronically in accordance
with 31 U.S.C. 3332, unless a waiver condition in 31 CFR 208.4 is met.
If CBP Form 4811 authorizes someone other than the payee to receive a
refund, CBP will issue the refund electronically to the authorized
person. If a power of attorney is on file, CBP will issue the refund
electronically to such attorney, if requested. Further, CBP added the
phrase ``submitted to CBP through a CBP-approved method'' to emphasize
that an approved method of submission for CBP Form 4811 must be used.
CBP is also making minor nomenclature or stylistic changes (i.e.,
``Customs'' to ``CBP'' in two instances, ``Customs'' to ``customs,''
changing the numeral ``3'' to ``three,'' and adding ``CBP'' to ``Form
4811'').
In Sec. 24.36(a)(3), regarding the accrual and payment of
delinquency interest under 19 U.S.C. 1505(d), and consistent with 31
U.S.C. 3332, CBP is adding a reference to 19 U.S.C. 1505(d) in the
first sentence for clarity. CBP is also adding two sentences at the end
of Sec. 24.36(a)(3) to state that no interest under 19 U.S.C. 1505(d)
will accrue when CBP certifies an electronic refund for issuance within
30 days of the liquidation or reliquidation of the entry, and CBP is
unable to deliver the electronic refund solely due to the recipient's
failure to provide CBP with the necessary banking information to
effectuate delivery of the electronic refund.

Part 141

Section 141.61 discusses the completion of entry and entry summary
documentation. The paragraph heading

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for Sec. 141.61(d)(3) is updated by replacing ``mailed'' with ``sent''
to read ``When refunds, bills, or notices of liquidation are to be sent
to agent.'' Section 141.61(d)(3) is amended to state that refunds will
be issued electronically in accordance with Sec. 24.36 in situations
where the importer wants the refund sent to the agent. Adding the
reference to Sec. 24.36 clarifies CBP's process with regard to the
issuance of refunds, which will be electronic, unless a waiver
condition in 31 CFR 208.4 is met. Further, CBP added the phrase
``through a CBP-approved method'' to emphasize that an approved method
of submission for CBP Form 4811 must be used. Finally, minor updates
are made throughout Sec. 141.61(d)(1)-(3) to replace outdated
references to box numbers on CBP Form 7501 with the correct box
numbers.

Part 159

Section 159.6, dealing with differences between liquidated duties
and estimated duties, is amended in paragraph (c) by replacing ``refund
checks'' with ``refunds'' and in paragraph (d) by replacing ``refund
check'' with ``a refund'' to allow for the issuance of electronic
refunds and check refunds (if a waiver condition in 31 CFR 208.4
applies).

Part 174

Section 174.13(c), regarding optional designation of an agent for
refunds, is amended to state that any refunds with respect to an entry
under protest will be issued electronically in accordance with 31
U.S.C. 3332, unless a waiver condition in 31 CFR 208.4 is met, to the
agent designated by the importer/consignee. In addition, CBP made one
minor nomenclature change replacing ``Customs'' with ``CBP'' regarding
CBP Form 4811.

V. Statutory and Regulatory Requirements

A. Administrative Procedure Act

The Administrative Procedure Act (APA) requirements in 5 U.S.C. 553
govern agency rulemaking procedures. Section 553(b) of the APA
generally requires notice and public comment before issuance of a final
rule and section 553(d) generally requires agencies delay the effective
date of final rules by at least 30 days. CBP has issued this IFR
without prior notice and opportunity for comment because this is a rule
of agency organization, procedure, or practice (``procedural rule''). 5
U.S.C. 553(b)(A). Rules are procedural if they are ``primarily directed
toward improving the efficient and effective operations of an
agency[.]'' Mendoza v. Perez, 754 F.3d 1002, 1023 (D.C. Cir. 2014)
(quoting Batterton v. Marshall, 648 F.2d 694, 702 n.34 (D.C. Cir.
1980). The procedural-rule exception ``covers agency actions that do
not themselves alter the rights or interests of parties, although it
may alter the manner in which the parties present themselves or their
viewpoints to the agency.'' See JEM Broad. Co., Inc. v. FCC, 22 F.3d
320, 326 (D.C. Cir. 1994) (quoting Batterton, 648 F.2d at 707; see also
Mendoza, 754 F.3d at 1023-24; Am. Hosp. Ass'n v. Bowen, 834 F.2d 1037,
1047 (D.C. Cir. 1987) (holding that procedural rules are those that do
not ``encode a substantive value judgment or put a stamp of approval or
disapproval on a given type of behavior'').
This procedural rule merely updates the internal practice used by
CBP personnel when issuing refunds by utilizing an electronic process
and generally eliminating the outdated and burdensome process involved
in receiving, opening, endorsing, and depositing paper checks. In doing
so, this rule is merely improving the efficacy of issuing refunds to
the appropriate parties. Further, the rule does not impact the rights
and interests of regulated entities because the substantive
determinations of whether and in what amount an importer is due a
refund remain unchanged. Accordingly, this IFR relates to agency
procedure and practice (5 U.S.C. 553(b)(A)) and advance notice and
comment is unnecessary.
Furthermore, 5 U.S.C. 553(b)(B) provides for exceptions from the
prior notice and public comment requirement when an agency for good
cause finds that such procedures are impracticable, unnecessary, or
contrary to the public interest. The unnecessary prong of the good-
cause inquiry is ``confined to those situations in which the
administrative rule is a routine determination, insignificant in nature
and impact, and inconsequential to the industry and to the public.''
Mack Trucks, Inc. v. EPA, 682 F.3d 87, 94 (D.C. Cir. 2012). Notice-and-
comment rulemaking is unnecessary here because, as explained above, the
changes do not affect the substantive rights or interests of regulated
parties, are minor in impact, and overall inconsequential to the
industry. The transition to provide refunds electronically rather than
through the mail conforms to modern modalities of receiving payments
already used by importers (i.e., a U.S. bank account set up for receipt
of electronic payments) and will result in cost savings to the
industry. Further, this IFR also provides for waivers in qualifying
circumstances, as set forth in 31 CFR 208.4, thereby mitigating any
adverse impact the rule would otherwise have. Taken together, the
overall impact on affected parties is trivial and in fact easier for
the industry as a whole given the improved efficiency of issuing
refunds. Accordingly, because the changes made by the rule are
inconsequential to the industry and public, CBP believes there exists
good cause to exempt the rule from notice-and-comment rulemaking. See
Mack Trucks, Inc. 682 F.3d at 94; 5 U.S.C. 553(b)(B).\14\
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\14\ Moreover, relevant law leaves little discretion to CBP,
rendering notice-and-comment unnecessary. As discussed in more
detail above, these amendments meet the general mandate of 31 U.S.C.
3332 that all Federal payments by the government (other than
payments made under the Internal Revenue Code of 1986) be delivered
by electronic funds transfer. Additionally, these practices and
procedures align with the purpose stated in Executive Order 14247
(Modernizing Payments To and From America's Bank Account) regarding
the transition of Federal disbursements to electronic payment
methods.
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Further, notice and comment would be contrary to the public
interest given the recent and substantial increase in check theft and
fraud. 5 U.S.C. 553(b)(B). In addition to generally eliminating the
outdated and burdensome process involved in receiving, opening,
endorsing, and depositing paper checks, the process of sending refunds
electronically will result in the elimination of misdelivered checks
and will significantly reduce or eliminate instances of check fraud.
Check theft and fraud are costly to both the U.S. government and to the
public. When a theft or fraud of a refund check is suspected, the U.S.
government must conduct a thorough adjudication, and, upon confirmation
of theft or fraud, must reissue the full value of the check to the
legal recipient. As discussed elsewhere in this document, with mail
theft complaints increasing substantially since 2020 and check fraud
nearly doubling since 2021, transitioning to the issuance of electronic
refunds without prior notice and comment is necessary to stop this
increasing threat of check fraud and theft. Delaying the implementation
of the regulatory changes to allow for notice and comment, thus, would
also be contrary to public interest as any delay presents significant
risk of harm to the public fisc. As explained above, conducting
thorough adjudications of alleged theft and fraud, in addition to
reissuing the full value of the check to legal recipients, is costly
and a burden on agency resources.

[[Page 25]]

Importers interested in receiving electronic refunds and the
associated benefits as soon as possible are able to sign up for an ACE
Portal account and begin receiving electronic refunds immediately upon
completing the ACH Refund application. However, despite the good cause
reasoning discussed above, and consistent with 5 U.S.C. 553(d), CBP is
providing a delayed effective date to allow sufficient time for all
trade members to sign up for an ACE Portal account and complete the ACH
Refund application.

B. Executive Orders 12866, 13563, and 14192

Executive Orders 12866 (Regulatory Planning and Review) and 13563
(Improving Regulation and Regulatory Review) direct agencies to assess
the costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits. Executive Order 13563 emphasizes the importance of
quantifying costs and benefits, reducing costs, harmonizing rules, and
promoting flexibility. Executive Order 14192 (Unleashing Prosperity
Through Deregulation) directs agencies to significantly reduce the
private expenditures required to comply with Federal regulations and
provides that ``any new incremental costs associated with new
regulations shall, to the extent permitted by law, be offset by the
elimination of existing costs associated with at least 10 prior
regulations.''
The Office of Management and Budget (OMB) has designated this rule
is not a ``significant regulatory action'' under section 3(f) of
Executive Order 12866. Accordingly, OMB has not reviewed this rule.
This interim final rule (IFR) is an Executive Order 14192
deregulatory action. CBP estimates that from 2025-2034, this rule will
result in a combined annualized net cost savings to the Federal
government and trade members of around $1.3 million (2025 U.S. dollars)
using a three percent discount rate and $1.0 million (2025 U.S.
dollars) using a seven percent discount rate. Based on CBP's perpetual
time horizon calculations, the present value of net cost savings from
this final rule will be $28.7 million and the annualized value of net
cost savings will be $2.0 million using a seven percent discount.
Therefore, this IFR is considered by CBP to be a deregulatory action
for the purposes of meeting Executive Order 14192 requirements. The
following is the economic analysis of the potential effects from this
IFR.
Purpose, Background, and Baseline
Importers of record are required to deposit with CBP an estimated
amount of duties and fees to be payable for imports of merchandise in a
number of different scenarios. CBP is also required to collect any
increased or additional duties and fees due, or refund any excess
deposits of duties and fees, with interest, as determined at the time
of liquidation or reliquidation. In the case where the estimated
payment amount made by the importer is determined to be greater than
the amount actually owed, then CBP's Revenue Division initiates the
process to certify and send a refund back to trade members which is
facilitated by the U.S. Treasury. Currently, CBP initiates a refund to
importers for various scenarios, including overpayment, cancelled
entries, removed or reassessed fines, penalties, or fees, and other
administrative refunds.
Although there are a number of different scenarios in which CBP
issues a refund, CBP notes that around 95 percent of all refunds
involve entries and arise from the liquidation or reliquidation of the
associated entry or drawback claim.\15\ Currently, in the absence of
this rule, the standard approach is for the applicable CBP Center to
liquidate or reliquidate the entry transaction to determine the refund
amount, for CBP's Revenue Division to timely certify the refund amount
and coordinate with the U.S. Treasury to print and mail the refund
check to the importer or a third party that is designated to receive
the refund on the importer's behalf. CBP does currently allow for ACH
refund payments; however, prior to September 30, 2025, trade members
were required to reach out to CBP to obtain the ACH request form and
submit the form to CBP. CBP's Revenue Division staff then reviewed and
transcribed the information into the system in order to issue a request
to the U.S. Treasury to send these refunds directly to the bank account
provided on the form.\16\ CBP notes that, in the absence of this rule,
around 30 percent of issued refunds are ACH payments.\17\
---------------------------------------------------------------------------

\15\ Data provided by CBP's Revenue Division, subject matter
expert, on June 20, 2025.
\16\ CBP recently developed the ACH Refund Authorization tab in
the ACE Portal for faster processing of ACH Refund applications. See
New Functionality Pertaining to Electronic Refunds in the Automated
Commercial Environment. 90 FR 45956 (Sept. 24, 2025).
\17\ Data provided by CBP's Revenue Division, subject matter
expert, on June 20, 2025.
---------------------------------------------------------------------------

Table 1 displays data on the number of U.S. Treasury checks issued
to trade members for refunds that CBP certified and the estimated
number of refunded amounts in recent years.\18\ CBP notes that, in the
absence of this IFR, the majority of refunds are still issued via paper
U.S. Treasury checks that are printed and mailed, but the percentage of
paper refunds to total refunds has been steadily declining in recent
years.
---------------------------------------------------------------------------

\18\ Data provided by CBP's Revenue Division, subject matter
expert, on August 13, 2025, and the U.S. Treasury subject matter
expert on December 12, 2025.

Table 1--Actual CBP Refund Payments Issued and Estimated Refund Value
----------------------------------------------------------------------------------------------------------------
2023 2024 2025 *
----------------------------------------------------------------------------------------------------------------
Paper Refund Checks.................................... 269,907 240,879 164,365
Estimated Paper Refund Value........................... $4,940,000,000 $4,568,170,872 $3,249,773,829
Average Value Per Paper Refund......................... $18,303 $18,965 $19,772
ACH Refund Payments.................................... 94,762 104,439 73,944
Estimated ACH Refund Value............................. $2,470,000,000 $3,260,000,000 $3,410,000,000
Average Value Per ACH Refund........................... $26,065 $31,214 $46,116
Total Number of Refund Payments........................ 364,669 345,318 238,309
Percent Paper Refund................................... 74.01% 69.76% 68.97%
Percent ACH Refund..................................... 25.99% 30.24% 31.03%
Total Value of Refund Payments......................... $7,410,000,000 $7,828,170,872 $6,659,773,829
Average Value Per Refund Payments...................... $20,320 $22,669 $27,946
----------------------------------------------------------------------------------------------------------------
* 2025 data is only available through Q3 of 2025.

[[Page 26]]

The standard process for printing and sending refunds as U.S.
Treasury checks to trade members through the mail is inefficient. For
example, sending a U.S. Treasury check via mail can take multiple days
and is subject to disruptions to mail delivery, resulting in lost
opportunity costs for the recipients as they wait for the refund check
to arrive. Additionally, sending refunds as U.S. Treasury checks via
mail has become increasingly subject to theft and fraud.\19\ If the
legally intended recipient of a U.S. Treasury check believes the refund
check has been lost, stolen or there has been other potentially
fraudulent activity, the legal recipient must notify CBP as soon as
possible, and no later than 12 months after the issuance of the U.S.
Treasury check, in accordance with 31 CFR 245.3. CBP coordinates with
the U.S. Treasury to adjudicate the claim of non-receipt to determine
the disposition. The adjudication process can vary in length,
complexity, and effort and involve a multitude of stakeholders. If the
U.S. Treasury confirms that a refund check has been lost (uncashed) or
has been subject to theft or fraud, then CBP will coordinate with the
U.S. Treasury to reissue the full value of the refund check, and the
refund check will be recertified by CBP for reissuance through the mail
to the legal recipient. If a refund check is lost and a stop is placed
on the check before it is cashed, the funds are sent back to CBP who
will make the determination on reissuance. In the scenario where fraud
has occurred, typically the U.S. Treasury attempts to recover the full
value of the fraudulently cashed check from the presenting financial
institution, which may result in a loss to that financial
institution.\20\ In limited instances, the U.S. Treasury will use the
Check Forgery Insurance Fund (CFIF) to cover losses that cannot be
collected from the financial institution.\21\ CBP notes that in 2023,
there were 1,026 instances where CBP refund checks were determined to
have been stolen or fraudulently negotiated. The number of CBP refund
checks reported as stolen and subject to fraud increased in 2024 up to
1,393.\22\
---------------------------------------------------------------------------

\19\ FinCen Alert on Nationwide Surge in Mail Theft-Related
Check Fraud Schemes Targeting the U.S. Mail, <a href="https://www.fincen.gov/system/files/shared/FinCEN%20Alert%20Mail%20Theft-Related%20Check%20Fraud%20FINAL%20508.pdf">https://www.fincen.gov/system/files/shared/FinCEN%20Alert%20Mail%20Theft-Related%20Check%20Fraud%20FINAL%20508.pdf</a> (Feb. 27, 2023).
\20\ In the case where a U.S. Treasury check is determined to be
lost but not fraudulently cashed, a stop can be placed on it which
may result in reissuance by CBP.
\21\ The CFIF was established by 31 U.S.C. 3343 and is available
for the purpose of providing funding settlements made to a payee or
special endorsee. 31 CFR 235.4. Feedback from the U.S. Treasury on
December 12, 2025 suggests a small percent of fraudulent refund
checks has to be recouped using the CFIF, the remaining are
recovered from the financial institutions who accepted the check.
\22\ Data provided by CBP's Revenue Division, subject matter
expert, on July 9, 2025.
---------------------------------------------------------------------------

CBP's process of certifying a refund and coordinating with the U.S.
Treasury to print and mail a refund check is more expensive than the
alternative of certifying and sending a refund via ACH. Additionally,
once these U.S. Treasury checks are mailed, it is difficult for CBP or
the U.S. Treasury to track whether or not the legal recipient received
the check. CBP and the U.S. Treasury can see if and when a refund check
was cashed, but refund checks are not void until one year and one day
after issuance. Therefore, unless otherwise notified, CBP and the U.S.
Treasury do not know if a refund check was lost in the mail, stolen,
the recipient provided an incorrect address, or whether the check has
been received but just has not been cashed yet for an entire year.
To address these issues and inefficiencies, continue modernizing
government processes, and align with 31 U.S.C. 3332 and the goals set
forth in the recently issued Executive Order 14247, this IFR will
require recipients of refunds to receive them
electronically.23 24 Recently issued Executive Order 14247
``Modernizing Payments To and From America's Bank Account'' (issued
March 25, 2025), mandates the transition from paper checks to
electronic payments for all Federal disbursements and receipts by
digitizing payments to the extent permissible under applicable law.
This requirement will be beneficial to CBP, the U.S. Treasury, trade
members, and some financial institutions by increasing efficiency,
reducing costs, and enhancing the security of Federal funds. The
transition to electronic payments will significantly improve the refund
process by increasing transparency through automation.
---------------------------------------------------------------------------

\23\ Executive Order 14247 Modernizing Payments To and From
America's Bank Account, 90 FR 14001 (March 25, 2025), available at
<a href="https://www.whitehouse.gov/presidential-actions/2025/03/modernizing-payments-to-and-from-americas-bank-account/">https://www.whitehouse.gov/presidential-actions/2025/03/modernizing-payments-to-and-from-americas-bank-account/</a>.
\24\ Refund via U.S. Treasury checks may still be printed and
mailed in rare circumstances only if the recipient meets U.S.
Treasury criteria identified in 31 CFR 208.4.
---------------------------------------------------------------------------

This IFR will require that most importers submit ACH direct deposit
banking information through their ACE Portal account to CBP if they are
owed a refund.\25\ Foreign importers will need to obtain a U.S. bank
account or authorize their broker to receive refunds on their behalf.
If an importer believes one of the waiver criteria in 31 CFR part 208
applies and seeks payment of its refund via a U.S. Treasury check, the
importer must notify CBP's Revenue Division in writing at <a href="/cdn-cgi/l/email-protection#bcdaced291dddfd4ced9dac9d2d8cfc9ccccd3cec8fcdfdecc92d8d4cf92dbd3ca">[email&#160;protected]</a>. After a trade member has provided its ACH
banking information, CBP will issue electronic refunds via ACH.\26\ CBP
anticipates that electronic refunds will result in faster receipt and
deposit of refunds for importers, fewer undeliverable refunds due to
mailing issues, and significantly reduce the possibility of check
fraud. Reducing U.S. Treasury check theft and fraud will better
position the Federal government to defend against financial fraud and
improper payments, increase efficiency, reduce costs, and enhance the
security of Federal payments. This is especially critical as according
to the U.S. Treasury, paper refund checks are 16 times more likely to
be lost, stolen, altered or delayed, compared to ACH.\27\ This IFR
aligns with the vision of Executive Order 14247 through reduced costs,
increased efficiency, and enhanced security that come with ACH
payments.\28\
---------------------------------------------------------------------------

\25\ For importers that have already requested ACH refunds from
CBP and completed the paperwork and resubmitted to CBP, their ACH
banking information will be automatically transferred to ACE. In
order to provide banking information to CBP, CBP will require all
other importers to create an ACE Portal account if they have not
already done so, unless a waiver exists. CBP notes that there may be
some exceptions including individuals and entities who are not
considered ``importers'' for purposes of this rulemaking, are owed a
refund and wish to receive the refund electronically via ACH. Such
individuals and entities must submit an application according to the
instructions provided on <a href="http://CBP.gov">CBP.gov</a> at <a href="https://www.cbp.gov/trade/automated/ach/refund">https://www.cbp.gov/trade/automated/ach/refund</a>.
\26\ An importer may designate a third party, such as a licensed
customs broker, by submitting CBP Form 4811, to electronically
receive a refund on the importer's behalf. The designated third
party must also enroll in ACH Refund via the ACE Portal account.
\27\ See Treasury, Press Release, Treasury Announces Federal
Government Will Phase out Paper Checks on September 30th, <a href="https://home.treasury.gov/news/press-releases/sb0223">https://home.treasury.gov/news/press-releases/sb0223</a>, and <a href="https://fiscal.treasury.gov/news/paper-checks-going-away.html">https://fiscal.treasury.gov/news/paper-checks-going-away.html</a> (Aug. 14,
2025).
\28\ CBP notes that there will still be a few exceptions to the
electronic refund requirement when the recipient satisfies the
conditions in 31 CFR 208.4 to receive a refund via a U.S. Treasury
check, but CBP anticipates that these will be rare cases.
---------------------------------------------------------------------------

Time Period of Analysis
This analysis primarily focuses on the potential impacts of this
rule after it is in effect, starting in fiscal year 2026. However, CBP
did incur systems development costs in fiscal year 2025 which need to
be reflected in this analysis. Therefore, CBP provides cost, cost
savings and benefits in this analysis

[[Page 27]]

for a 10-year time period from fiscal year 2025 to fiscal year 2034.
For the remainder of this analysis, all references to years are for
fiscal years unless otherwise noted.
Population Affected by Rule
CBP anticipates that this IFR will affect CBP, the U.S. Treasury,
some financial institutions, and trade members that import goods into
the United States. CBP anticipates that this rule will require trade
members to set up ACE Portal accounts and to submit ACH banking
information so that CBP can issue ACH refunds instead of mailing
refunds as U.S. Treasury checks. CBP anticipates that providing this
ACH information would only need to be submitted once per importer,
unless that importer wants to change the banking information for its
ACH refund. Additionally, in the future, any company that becomes an
importer to the United States will also be required to submit this
information. CBP uses the number of importers to estimate how many
trade members will be affected in future years and will be required to
submit this information. CBP used the number of importers and those
with ACE Portal accounts and assumes that the total number of importers
will increase by one percent each year.\29\ CBP estimates the number of
new importers between 2026-2034 would be approximately 42,814 or on
average 4,757 annually. Table 2 displays CBP's estimates for how many
importers there will be in future years.
---------------------------------------------------------------------------

\29\ Information on the estimated total number of importers
(457,000) provided by CBP's Revenue Division, subject matter expert,
on June 20, 2025. Information on the estimated number of unique
importers that already have an ACE Portal account (13,100) provided
by CBP's Entry Summary, Accounts and Revenue Division, subject
matter expert, on August 26, 2025, and September 26, 2025. CBP used
the estimated percent increase in importers in 2025 to project an
estimated one percent increase annually in the number of importers.

Table 2--Estimated Number of New Importers 2026-2034
----------------------------------------------------------------------------------------------------------------
Year Total importers Percent increase New importers
----------------------------------------------------------------------------------------------------------------
2025................................................... 457,000 ................. .................
2026................................................... 461,570 1 4,570
2027................................................... 466,186 1 4,616
2028................................................... 470,848 1 4,662
2029................................................... 475,556 1 4,708
2030................................................... 480,312 1 4,756
2031................................................... 485,115 1 4,803
2032................................................... 489,966 1 4,851
2033................................................... 494,866 1 4,900
2034................................................... 499,814 1 4,949
----------------------------------------------------------------------------------------------------------------

Costs of Rule
CBP expects that both CBP and importers will incur costs during the
period of analysis. Currently, in the absence of this IFR, when an
importer submits an ACE Portal account application that application is
manually reviewed and approved by a CBP ACE Account Services Desk (ASD)
staff member. CBP anticipates an immediate significant increase in ACE
Portal account applications as a result of this IFR and this would
significantly increase the workload for ASD staff. Without other
changes, due to the lack of ASD staff and the significant increase in
workload, CBP would not be able to process this increased number of ACE
Portal account applications in a reasonable time, which would result in
major delays in processing and approving many importers' ACE Portal
accounts. To mitigate that problem, and to prevent delays in approving
the significant influx of applications, CBP developed an automated
review process in ACE which will be used to approve most of these
applications.\30\ As such, CBP does not anticipate significant delays,
but this resulted in a development cost.
---------------------------------------------------------------------------

\30\ CBP notes that this new automated ACE importer account
creation process includes a new identity verification process to
guard against possible fraud and identity theft. Upon submission of
the electronic application, an email message is sent to the point of
contact (POC) listed on the existing importer account to verify that
the individual applying for the new account is in fact an employee
of the importer. A new account is not created if one of the
following is true: the importer account (i.e., the 5106 record) does
not already exist, the POC's email address is not present in the
system, or the POC does not respond to the system-generated email
mentioned above.
---------------------------------------------------------------------------

As part of this IFR, CBP's incurred costs related to Information
Technology (IT) systems development and operations and maintenance
costs associated with implementation of the ACH banking information
collection tool into ACE and development of an automated process for
the ACE Portal account application. Because ACH Refund operates through
ACE, CBP did not have to develop an entirely new system. CBP estimates
that one-time development costs for creating the ACH Refund
Authorization tab and ACE Portal account application automation were
approximately $1,478,004.\31\ In addition to the development costs, CBP
will also incur annual operating and maintenance costs associated with
the automation process and the ACH Refund Authorization tab in ACE.
During the period of analysis, CBP expects these costs to be around
$972,123, or on average $97,212 annually.\32\ Table 3 displays CBP's
estimates for the IT systems development costs and IT systems ongoing
operation and maintenance costs associated with this IFR.
---------------------------------------------------------------------------

\31\ Information provided by CBP's Revenue Division, subject
matter expert, on August 28, 2025, and CBP's Office of Entry
Summary, Accounts, and Revenue Division, on September 15, 2025.
\32\ Information provided by CBP's Revenue Division, subject
matter expert, on August 28, 2025, and CBP's Office of Entry
Summary, Accounts, and Revenue Division on September 15, 2025.

Table 3--CBP IT Systems Costs
----------------------------------------------------------------------------------------------------------------
Operation &
Year Development maintenance costs Total
----------------------------------------------------------------------------------------------------------------
2025................................................. $1,478,004 $73,730 $1,551,734
2026................................................. ................. 123,032 123,032

[[Page 28]]

2027................................................. ................. 126,846 126,846
2028................................................. ................. 84,380 84,380
2029................................................. ................. 86,995 86,995
2030................................................. ................. 89,692 89,692
2031................................................. ................. 92,473 92,473
2032................................................. ................. 95,339 95,339
2033................................................. ................. 98,295 98,295
2034................................................. ................. 101,342 101,342
----------------------------------------------------------
Total............................................ 1,478,004 972,123 2,450,127
----------------------------------------------------------------------------------------------------------------
* Note values may not sum due to rounding.

CBP also anticipates that ASD staff will incur time burdens to
review ACE Portal account applications. CBP has developed an automated
review and approval process for importer ACE Portal account
applications but will still conduct manual review of a certain number
of these applications. CBP does not know exactly how many of these
importer ACE Portal account applications will require a manual review.
Due to this uncertainty, CBP provides a range of estimates for how many
of these importer applications will be reviewed and processed by ASD
staff. For CBP's primary estimate, CBP expects that around 20 percent
of these applications will be manually reviewed by ASD staff. For a low
estimate, CBP assumes that only 10 percent of these importer
applications will be reviewed manually, while CBP's high estimate
assumes that around 30 percent of applications are manually
reviewed.\33\ Based on these assumptions, CBP's primary estimate
suggests that ASD staff will manually review around 97,343 importer
applications from 2026 through 2034. Meanwhile, CBP's high and low
estimates suggest that ASD staff will review between 146,014 and 48,671
applications during the period of analysis.
---------------------------------------------------------------------------

\33\ Information provided by CBP's Entry Summary, Accounts, and
Revenue Division, subject matter experts, on August 29, 2025. At
this point there is no plan established to eliminate the manual
review process and CBP does not know exactly how many importer
applications will be reviewed after the automation tool is
implemented. This uncertainty led CBP to provide a range of
estimates.
---------------------------------------------------------------------------

CBP estimates that on average it takes around 30 minutes (0.5
hours) for ASD staff to manually review and process applications, and
to establish an ACE Portal account.\34\ To estimate the time burden to
ASD staff, CBP multiplied the estimated number of applications manually
reviewed by the average time burden of 0.5 hours. CBP's primary
estimate suggests that during the period of analysis ASD staff will
incur a time burden of around 48,671 hours when reviewing additional
ACE Portal account applications as a result of this IFR. CBP's high and
low estimates show the time burden to ASD staff will range from 73,007
to 24,336 hours from 2026-2034. Table 4 displays CBP's estimates for
the ACE Portal account applications reviewed by CBP and the associated
time burden hours from 2025-2034.
---------------------------------------------------------------------------

\34\ Information provided by CBP's Trade Transformation Office,
subject matter expert, on August 26, 2025.

Table 4--CBP Time Burden From Manual Review of ACE Portal Account Applications in 2025-2034
[Time burden in hours]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Applications manually reviewed Total time burden estimates
estimates --------------------------------
Year Estimated ---------------------------------- Time burden
applications Primary High Low to review Primary High Low
(20%) (30%) (10%) (20%) (30%) (10%)
--------------------------------------------------------------------------------------------------------------------------------------------------------
2025................................................. .............. ......... .......... ......... .............. ......... ......... .........
2026................................................. 448,470 89,694 134,541 44,847 0.5 44,847 67,271 22,424
2027................................................. 4,616 923 1,385 462 0.5 462 692 231
2028................................................. 4,662 932 1,399 466 0.5 466 699 233
2029................................................. 4,708 942 1,413 471 0.5 471 706 235
2030................................................. 4,756 951 1,427 476 0.5 476 713 238
2031................................................. 4,803 961 1,441 480 0.5 480 720 240
2032................................................. 4,851 970 1,455 485 0.5 485 728 243
2033................................................. 4,900 980 1,470 490 0.5 490 735 245
2034................................................. 4,949 990 1,485 495 0.5 495 742 247
--------------------------------------------------------------------------------------------------
Total............................................ 486,714 97,343 146,014 48,671 .............. 48,671 73,007 24,336
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Note values may not sum due to rounding.

CBP monetizes these time burdens to ASD staff by multiplying the
total time burden for each estimate by the average hourly loaded wage
rate for a CBP Trade and Revenue Employee, $85.19.\35\ CBP's primary
estimate shows that ASD staff will incur a cost of approximately $4.1
million. Meanwhile, CBP's high and low estimates suggest that costs to
ASD staff range from $6.2 million to $2.1 million during the period of
analysis. Table 5 below displays CBP's primary, high, and low estimates
for the time burden and costs associated with reviewing additional
importer ACE Portal account applications as a result of this IFR.
---------------------------------------------------------------------------

\35\ CBP bases this wage on the FY 2024 salary, benefits,
premium pay, non-salary costs, and awards of the national average of
CBP Trade and Revenue Employee positions. Source: Email
correspondence with CBP's Office of Finance on July 15, 2025.

[[Page 29]]

Table 5--CBP Costs From Manual Review of ACE Portal Account Applications 2025-2034
[Time burden in hours, costs in undiscounted 2025 U.S. dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Total time burden estimates Cost estimates
Year --------------------------------- Wage rate --------------------------------------
Primary High Low Primary High Low
--------------------------------------------------------------------------------------------------------------------------------------------------------
2025............................................................... ......... ......... ......... ........... ........... ........... ...........
2026............................................................... 44,847 67,271 22,424 $85.19 $3,820,516 $5,730,774 $1,910,258
2027............................................................... 462 692 231 85.19 39,321 58,982 19,661
2028............................................................... 466 699 233 85.19 39,714 59,572 19,857
2029............................................................... 471 706 235 85.19 40,112 60,167 20,056
2030............................................................... 476 713 238 85.19 40,513 60,769 20,256
2031............................................................... 480 720 240 85.19 40,918 61,377 20,459
2032............................................................... 485 728 243 85.19 41,327 61,990 20,663
2033............................................................... 490 735 245 85.19 41,740 62,610 20,870
2034............................................................... 495 742 247 85.19 42,158 63,236 21,079
------------------------------------------------------------------------------------
Total.......................................................... 48,671 73,007 24,336 ........... 4,146,318 6,219,477 2,073,159
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Note values may not sum due to rounding.

CBP anticipates that importers will also incur costs as a result of
this rule, which will require most importers to submit ACH banking
information to CBP via ACE for the issuance of electronic refunds.\36\
CBP anticipates that on average it will take around 8 minutes (0.133
hours) to complete the ACH banking information in ACE and submit it to
CBP.\37\ Over the period of analysis, CBP estimates that approximately
494,314 importers will need to submit ACH banking information to CBP,
resulting in a one-time burden of around 65,909 hours when the ACH
banking information is submitted in ACE. To monetize these time burden
costs to trade members, CBP multiplied the time burden hours by the
average hourly loaded wage rate for importers, $36.57.\38\ CBP
calculated this loaded wage rate by first multiplying the Bureau of
Labor Statistics' (BLS) 2024 median hourly wage rate for Cargo and
Freight Agents ($23.99), which CBP assumes best represents the wage for
importers, by the ratio of BLS' Q4 2024 total compensation to wages and
salaries for Office and Administrative Support occupations (1.4886),
the assumed occupational group for importers, to account for non-salary
employee benefits.\39\ CBP uses an annual growth rate of 2.42% based on
the prior year's change in the implicit price deflator, published by
the Bureau of Economic Analysis.\40\ CBP estimates that importers will
incur costs of approximately $2.4 million when submitting their ACH
banking information to CBP as a result of this IFR. Table 6 displays
CBP's estimates for time burden and costs to importers to submit their
ACH banking information to CBP from 2025-2034.
---------------------------------------------------------------------------

\36\ According to CBP's Revenue Division, subject matter expert,
some importers have already submitted ACH banking information by
requesting a paper ACH refund form and submitting the form to CBP.
CBP estimates that around 5,500 importers would have that ACH
banking information transferred over into ACE and would not have to
resubmit that information in ACE.
\37\ Data provided by CBP's Revenue Division, subject matter
expert, on June 20, 2025.
\38\ Source of median wage rate: U.S. Bureau of Labor
Statistics. Occupational Employment and Wage Statistics, ``May 2023
National Occupational Employment and Wage Estimates United States.''
Updated April 3, 2024. Available at <a href="https://www.bls.gov/oes/2023/may/oes_nat.htm">https://www.bls.gov/oes/2023/may/oes_nat.htm</a>. Accessed June 4, 2024. The total compensation to
wages and salaries ratio is equal to the total compensation cost per
hour worked for Office and Administrative Support occupations
($33.98) divided by the wages and salaries cost per hour worked for
the same occupation category ($23.00). See ``Table 2. Employer Costs
for Employee Compensation for civilian workers by occupational and
industry group.'' Bureau of Labor Statistics, ``Employer Costs for
Employee Compensation--December 2023.'' Released March 13, 2024.
Available at <a href="https://www.bls.gov/news.release/archives/ecec_03132024.pdf">https://www.bls.gov/news.release/archives/ecec_03132024.pdf</a>. Accessed June 4, 2024.
\39\ Source of median wage rate: U.S. Bureau of Labor
Statistics. Occupational Employment and Wage Statistics, ``May 2024
National Occupational Employment and Wage Estimates United States.''
Updated April 2, 2025. Available at <a href="https://www.bls.gov/oes/2024/may/oes_nat.htm">https://www.bls.gov/oes/2024/may/oes_nat.htm</a>. Accessed June 17, 2025. The total compensation to
wages and salaries ratio is equal to the total compensation cost per
hour worked for Office and Administrative Support occupations
($35.86) divided by the wages and salaries cost per hour worked for
the same occupation category ($24.09). See ``Table 2. Employer Costs
for Employee Compensation for civilian workers by occupational and
industry group.'' Bureau of Labor Statistics, ``Employer Costs for
Employee Compensation--December 2024.'' Released March 14, 2025.
Available at <a href="https://www.bls.gov/news.release/archives/ecec_03142024.pdf">https://www.bls.gov/news.release/archives/ecec_03142024.pdf</a>. Accessed June 17, 2025.
\40\ To adjust to 2025 dollars, multiply by the 2023-2024
percent change in the Bureau of Economic Analysis's Implicit Price
Deflators for Gross Domestic Product (125.230/122.273-1). See
``Table 1.1.9. Implicit Price Deflators for Gross Domestic
Product,'' Line 1 Gross Domestic Product, annual. Bureau of Economic
Analysis. Updated May 30, 2025. Available at <a href="https://apps.bea.gov/iTable/?reqid=19&step=2&isuri=1&categories=survey#eyJhcHBpZCI6MTksInN0ZXBzIjpbMSwyLDMsM10sImRhdGEiOltbImNhdGVnb3JpZXMiLCJTdXJ2ZXkiXSxbIk5JUEFfVGFibGVfTGlzdCIsIjEzIl0sWyJGaXJzdF9ZZWFyIiwiMjAxNiJdLFsiTGFzdF9ZZWFyIiwiMjAyNCJdLFsiU2NhbGUiLCIwIl0sWyJTZXJpZXMiLCJBIl1dfQ==">https://apps.bea.gov/iTable/?reqid=19&step=2&isuri=1&categories=survey#eyJhcHBpZCI6MTksInN0ZXBzIjpbMSwyLDMsM10sImRhdGEiOltbImNhdGVnb3JpZXMiLCJTdXJ2ZXkiXSxbIk5JUEFfVGFibGVfTGlzdCIsIjEzIl0sWyJGaXJzdF9ZZWFyIiwiMjAxNiJdLFsiTGFzdF9ZZWFyIiwiMjAyNCJdLFsiU2NhbGUiLCIwIl0sWyJTZXJpZXMiLCJBIl1dfQ==</a>. Accessed June
17, 2025.

Table 6--Trade Time Burden and Costs To Submit ACH Refund Information Electronically
----------------------------------------------------------------------------------------------------------------
Number of Time burden Total time
Year importers per importer burden Wage rate Total cost
----------------------------------------------------------------------------------------------------------------
2025............................ .............. .............. .............. .............. ..............
2026............................ 456,070 0.133 60,809 $36.57 $2,223,797
2027............................ 4,616 0.133 615 36.57 22,506
2028............................ 4,662 0.133 622 36.57 22,731
2029............................ 4,708 0.133 628 36.57 22,959
2030............................ 4,756 0.133 634 36.57 23,188
2031............................ 4,803 0.133 640 36.57 23,420
2032............................ 4,851 0.133 647 36.57 23,654

[[Page 30]]

2033............................ 4,900 0.133 653 36.57 23,891
2034............................ 4,949 0.133 660 36.57 24,130
-------------------------------------------------------------------------------
Total....................... 494,314 .............. 65,909 .............. 2,410,276
----------------------------------------------------------------------------------------------------------------
* Note values may not sum due to rounding.

Additionally, for importers to submit the ACH banking information
to CBP via ACE they will first need to create an ACE Portal account.
This will result in an additional time burden to importers who have not
already created an ACE Portal account. CBP estimates that on average it
takes around 20 minutes (0.333 hours) to create an ACE Portal
account.\41\ CBP notes that some importers have already created an ACE
Portal account, therefore only the importers that have not yet created
their ACE Portal account will incur this time burden. CBP estimates
that in 2026, approximately 448,470 importers will be required to
create an ACE Portal account as a result of this IFR. From 2027 to
2034, CBP anticipates an additional 38,244 importers will also need to
create an ACE Portal account. CBP estimates that importers are expected
to incur approximately 162,238 hours of time burden as a result of
creating these ACE Portal accounts. To monetize these time burden costs
to trade members, CBP multiplied the time burden hours by the average
hourly loaded wage rate for importers, $36.57. CBP estimates that
importers will incur a cost of around $5.9 million to create ACE Portal
accounts as a result of this IFR. Table 7 displays CBP's estimates for
the cost burden to importers when creating ACE Portal accounts as a
result of this IFR from 2025-2034.
---------------------------------------------------------------------------

\41\ Information provided by CBP's Revenue Division, subject
matter expert, on July 18, 2025.

Table 7--Trade Time Burden and Costs To Create ACE Portal Accounts
[Time in hours, costs in undiscounted 2025 U.S. dollars]
----------------------------------------------------------------------------------------------------------------
Number of Time burden Total time
Year importers per importer burden Wage rate Total cost
----------------------------------------------------------------------------------------------------------------
2025............................ .............. .............. .............. .............. ..............
2026............................ 448,470 0.333 149,490 $36.57 $5,466,849
2027............................ 4,616 0.333 1,539 36.57 56,265
2028............................ 4,662 0.333 1,554 36.57 56,828
2029............................ 4,708 0.333 1,569 36.57 57,396
2030............................ 4,756 0.333 1,585 36.57 57,970
2031............................ 4,803 0.333 1,601 36.57 58,550
2032............................ 4,851 0.333 1,617 36.57 59,135
2033............................ 4,900 0.333 1,633 36.57 59,727
2034............................ 4,949 0.333 1,650 36.57 60,324
-------------------------------------------------------------------------------
Total....................... 486,714 .............. 162,238 .............. 5,933,046
----------------------------------------------------------------------------------------------------------------
* Note values may not sum due to rounding.

CBP also acknowledges that foreign importers may incur a slight
cost from the requirement that they obtain a U.S. bank account for ACH
refunds. However, CBP anticipates that this cost will be minimal
because these foreign importers likely either have a U.S. bank account,
or they will authorize their broker to receive refunds on their behalf.
Additionally, importers may receive payment via check if a waiver
applies under 31 CFR part 208. CBP requests public comments on these
costs discussed above and any other costs CBP has not included in this
analysis that may result from this IFR. Table 8 displays CBP's
estimates for total costs as a result of this IFR during the period of
analysis. CBP anticipates that overall, this IFR will result in a total
cost of approximately $14.9 million.

Table 8--Total Estimated Costs From This IFR
[Costs in undiscounted 2025 U.S. dollars]
----------------------------------------------------------------------------------------------------------------
CBP time Importer time
Year CBP IT costs burden costs burden costs Total cost
----------------------------------------------------------------------------------------------------------------
2025........................................... $1,551,734 .............. ............... $1,551,734
2026........................................... 123,032 $3,820,516 $7,690,647 11,634,194
2027........................................... 126,846 39,321 78,772 244,938
2028........................................... 84,380 39,714 79,559 203,653
2029........................................... 86,995 40,112 80,355 207,462
2030........................................... 89,692 40,513 81,158 211,363
2031........................................... 92,473 40,918 81,970 215,360
2032........................................... 95,339 41,327 82,790 219,456
2033........................................... 98,295 41,740 83,618 223,652

[[Page 31]]

2034........................................... 101,342 42,158 84,454 227,953
----------------------------------------------------------------
Total...................................... 2,450,127 4,146,318 8,343,322 14,939,767
----------------------------------------------------------------------------------------------------------------
* Note values may not sum due to rounding.

Cost Savings of Rule
CBP anticipates that this IFR will result in cost savings to the
Federal government, financial institutions, and trade members.
Requiring electronic ACH refunds will eliminate the existing process of
printing and mailing paper U.S. Treasury checks to importers.\42\ Since
this process is conducted by the U.S. Treasury, CBP anticipates that
these costs savings will be experienced by the U.S. Treasury. Prior to
this IFR, CBP anticipates that, on average, every year CBP issues
approximately 341,723 refunds, of which around 70% are printed and
mailed by the U.S. Treasury as checks.\43\ CBP notes that in recent
years the percentage of refunds being printed and mailed as U.S.
Treasury checks has been declining and CBP assumes that the average
number of paper refund checks sent in future years would continue to
decline even without this IFR. CBP estimates the number of future paper
refund checks that would be sent in the baseline by assuming the number
of refunds sent as U.S. Treasury checks will decrease by around 8.8%
each year.\44\ Therefore during the period of analysis, CBP anticipates
that this IFR would eliminate approximately 1,278,486 paper refund
checks from being printed and mailed by the U.S. Treasury after the IFR
is implemented. CBP expects that the cost to print and mail each refund
check costs the U.S. Treasury around $2.66.\45\ CBP estimates that this
IFR will result in a total cost savings of approximately $3,400,773
from eliminating the printing and mailing costs associated with paper
refund checks. Table 9 displays CBP's estimates for the number of
future paper refund checks it expects to send by U.S. Treasury (in the
baseline), eliminated U.S. Treasury checks and the associated printing
and mailing cost savings to the U.S. Treasury from this IFR.
---------------------------------------------------------------------------

\42\ Refund checks may still be printed and mailed in rare
circumstances only if the recipient meets U.S. Treasury criteria
identified in 31 CFR 208.4.
\43\ Data provided by CBP's Revenue Division, subject matter
expert, on August 13, 2025.
\44\ CBP estimated the annual decrease in refunds sent as U.S.
Treasury checks by calculating the annual percent change between the
estimated number of paper refund checks for 2025 and the actual
number of paper refund checks sent in 2023 ((222,425-269,907)/
(269,907))/2 = 8.80%.
\45\ Data provided by CBP's Revenue Division, subject matter
expert, on July 17, 2025.

Table 9--Estimated Baseline Number of Refund Paper Checks, and Expected Eliminated Refund Paper Checks and
Associated Printing and Mailing Cost Savings From This IFR
----------------------------------------------------------------------------------------------------------------
Baseline
number of % Decline in Number of Cost per Total cost
Year future paper checks eliminated paper check savings
checks checks
----------------------------------------------------------------------------------------------------------------
2025............................ 218,868 .............. .............. $2.66 $0
2026............................ 199,616 -8.80 199,616 2.66 530,980
2027............................ 182,058 -8.80 182,058 2.66 484,275
2028............................ 166,044 -8.80 166,044 2.66 441,678
2029............................ 151,439 -8.80 151,439 2.66 402,828
2030............................ 138,119 -8.80 138,119 2.66 367,395
2031............................ 125,970 -8.80 125,970 2.66 335,079
2032............................ 114,889 -8.80 114,889 2.66 305,606
2033............................ 104,784 -8.80 104,784 2.66 278,725
2034............................ 95,567 -8.80 95,567 2.66 254,208
-------------------------------------------------------------------------------
Total....................... 1,497,354 .............. 1,278,486 .............. 3,400,773
----------------------------------------------------------------------------------------------------------------
* Note: The 2025 Number of Paper Checks Eliminated is provided to show CBP's estimated number which was used to
calculate 2026 paper checks that will be eliminated as a result of this IFR. CBP does not expect any paper
checks will be eliminated in 2025. Values may not sum due to rounding.

One of the primary benefits of transitioning from sending paper
checks to electronic ACH refunds is the fact that electronic ACH
refunds are much less likely to be lost, stolen, altered, or returned.
Mailed paper checks from the U.S. Treasury are at least 16 times more
likely to be subject to these issues compared to electronic ACH
refunds.\46\ As discussed earlier, when an importer files a claim that
fraudulent activity has targeted a refund check, the U.S. Treasury
adjudicates the claim of non-receipt. When it is determined that the
refund check was indeed targeted by fraudulent activity, a refund check
is resent to the importer. CBP notes that in 2023, approximately 1,026
paper refund checks were a target of fraud and that number increased in
2024 to 1,393 checks, or on average 1,210 annually. These stolen checks
resulted in the U.S. Treasury reissuing checks worth an estimated $2.0
million in 2023 and $3.98 million in 2024, which was a loss to
financial institutions.\47\ CBP assumes that issuing electronic ACH
refunds

[[Page 32]]

would eliminate almost all of these instances of fraud. CBP estimates
that transitioning to electronic ACH refunds would eliminate
approximately 94% of these reissued checks due to fraud, or
approximately 1,134 each year.\48\ Based on the estimated value of
refund checks for 2023, 2024 and part of 2025, the average value of a
refund check that is subject to theft and/or fraud was approximately
$2,439. Eliminating these instances of fraud would save a total of
$2.72 million (1,134 x $2,439) annually based on the estimated value of
the losses incurred from fraud. Prior to this IFR, each one of these
checks would also need to be reissued to the importer, and CBP already
identified the printing and mailing costs associated with issuing these
paper refund checks above at $2.66 per check. CBP estimates that these
cost savings from the elimination of resending stolen checks each year
will be around $2.78 million annually. Table 10 below displays CBP's
estimates for savings from eliminating the cost to resend stolen
checks.
---------------------------------------------------------------------------

\46\ Bureau of the Fiscal Service, Paper Checks are Going Away--
Here's What You Need to Know, available at <a href="https://fiscal.treasury.gov/news/paper-checks-going-away.html">https://fiscal.treasury.gov/news/paper-checks-going-away.html</a> (last updated
Aug. 14, 2025).
\47\ Data provided by CBP's Revenue Division, subject matter
expert, on August 13, 2025.
\48\ CBP based this estimate on the assumption that paper checks
are 16 times more likely to be subject to fraud, therefore
transition to electronic ACH refund would eliminate [1210-(1,210 *
(1-.9375)) = 1,134].

Table 10--Cost Savings From Eliminating Paper Check Fraud 2025-2034
[Undiscounted 2025 U.S. dollars]
----------------------------------------------------------------------------------------------------------------
Number of
Year fraudulent Cost to resend Estimated Total cost
checks checks fraud loss savings
----------------------------------------------------------------------------------------------------------------
2025........................................... .............. ............... .............. ..............
2026........................................... 1,134 $2.66 $2,765,625 $2,768,641
2027........................................... 1,134 2.66 2,765,625 2,768,641
2028........................................... 1,134 2.66 2,765,625 2,768,641
2029........................................... 1,134 2.66 2,765,625 2,768,641
2030........................................... 1,134 2.66 2,765,625 2,768,641
2031........................................... 1,134 2.66 2,765,625 2,768,641
2032........................................... 1,134 2.66 2,765,625 2,768,641
2033........................................... 1,134 2.66 2,765,625 2,768,641
2034........................................... 1,134 2.66 2,765,625 2,768,641
----------------------------------------------------------------
Total...................................... 10,205 ............... 24,890,625 24,917,771
----------------------------------------------------------------------------------------------------------------
* Note values may not sum due to rounding.

In addition, eliminating the fraudulent activity on these checks
could allow the U.S. Treasury employees to be redirected from paper
check claim adjudications to other mission critical work if
extrapolated governmentwide. CBP was unable to obtain a specific
estimate on the average time burden to the U.S. Treasury to conduct
check claim adjudications, as they can vary significantly on a case-by-
case basis from days to weeks or longer and at times also involves
external partners such as federal law enforcement. Therefore, CBP
discusses these savings qualitatively in this analysis. Transitioning
to electronic refunds would not fully eliminate the U.S. Treasury
staff's work effort on adjudicating check claims as it is only one
aspect of U.S. Treasury's post payment exception workloads. CBP assumes
that the work effort to complete a paper check non-receipt claim
adjudication is equal to the work effort to complete an ACH non-receipt
claim adjudication. Unfortunately, CBP does not know exactly how many
ACH non-receipt claims will occur in the future after the transition to
electronic ACH refunds, nor does it have insight into the U.S.
Treasury's other post payment exception workloads. However, as CBP
noted above, paper refund checks are 16 times more likely to be lost,
stolen, altered or delayed, compared to ACH refunds. Therefore, CBP
anticipates that the time savings to the U.S. Treasury staff could be
significant, allowing staff to be redirected to other mission critical
tasks if extrapolated governmentwide.
Additionally, CBP anticipates that this IFR will result in some
time savings to importers from eliminating instances of check theft and
fraud. Importers need to conduct reconciliation of their accounts to
ensure the refund check was not received and cashed. Once this is
confirmed, the importer needs to reach out to CBP's Revenue Division
via email to notify CBP that the refund check may have been lost or
stolen. CBP acknowledges that this time burden to importers will vary
depending on the scenario and the company; therefore, CBP presents a
range estimate. CBP's primary estimate suggests the average importer
incurs a three-hour time burden to review and reconcile its accounts to
identify a missing check and to reach out to CBP.\49\ CBP's low
estimate and high estimate suggest that the average time burden would
range from one hour to six hours. CBP requests comments on these
assumptions. CBP's primary estimate shows that during the period of
analysis importers would experience a time savings of approximately
30,615 hours or on average 3,402 annually as they would no longer have
to review and reconcile their accounts to identify missing refund
checks and notify CBP via email. CBP's low and high estimates propose
the time savings would range between 10,205 hours and 61,231 hours. To
monetize these time savings from this IFR, CBP multiplied the time
savings hours by the average hourly loaded wage rate for importers,
$36.57. According to CBP's primary estimate, importers will experience
a cost savings of approximately $1,119,608 or $124,401 annually. CBP's
low and high estimates suggest total cost savings range from $373,203
to $2,239,215. Table 11 displays CBP's estimates for time and cost
savings to trade members from eliminating theft and fraud of paper
checks.
---------------------------------------------------------------------------

\49\ Information provided by CBP's Revenue Division, subject
matter expert, on September 24, 2025.

[[Page 33]]

Table 11--Time and Costs Savings To Trade From Eliminating Theft and Fraud of Paper Checks 2025-2034
[Time savings in hours, costs in undiscounted 2025 U.S. dollars]
--------------------------------------------------------------------------------------------------------------------------------------------------------
Time savings estimates Cost savings estimates
Year Checks subject ---------------------------------- Wage rate --------------------------------
to fraud Primary Low High Primary Low High
--------------------------------------------------------------------------------------------------------------------------------------------------------
2025............................................... ................ ......... .......... ......... .............. ......... ......... .........
2026............................................... 1,134 3,402 1,134 6,803 $36.57 $124,401 $41,467 $248,802
2027............................................... 1,134 3,402 1,134 6,803 36.57 124,401 41,467 248,802
2028............................................... 1,134 3,402 1,134 6,803 36.57 124,401 41,467 248,802
2029............................................... 1,134 3,402 1,134 6,803 36.57 124,401 41,467 248,802
2030............................................... 1,134 3,402 1,134 6,803 36.57 124,401 41,467 248,802
2031............................................... 1,134 3,402 1,134 6,803 36.57 124,401 41,467 248,802
2032............................................... 1,134 3,402 1,134 6,803 36.57 124,401 41,467 248,802
2033............................................... 1,134 3,402 1,134 6,803 36.57 124,401 41,467 248,802
2034............................................... 1,134 3,402 1,134 6,803 36.57 124,401 41,467 248,802
----------------------------------------------------------------------------------------------------
Total.......................................... 10,205 30,615 10,205 61,231 .............. 1,119,608 373,203 2,239,215
--------------------------------------------------------------------------------------------------------------------------------------------------------
* Note values may not sum due to rounding.

Table 12 displays CBP's estimates for total cost savings as a
result of this IFR during the period of analysis. CBP anticipates that
overall, this IFR will result in total quantifiable cost savings of
approximately $29 million or on average $3.2 million annually. CBP also
anticipates that the time savings to the U.S. Treasury staff could be
significant, allowing staff to be redirected to other mission critical
tasks if extrapolated governmentwide. CBP requests public comments on
these cost savings discussed above and any other costs savings CBP has
not included in this analysis that may result from this IFR.

Table 12--Total Cost Savings From 2025-2034
[Undiscounted 2025 U.S. dollars]
----------------------------------------------------------------------------------------------------------------
Eliminating
Year printing/ Eliminating Cost savings Total cost
mailing fraud to trade savings
----------------------------------------------------------------------------------------------------------------
2025............................................... $0 .............. .............. $0
2026............................................... 527,143 $2,728,054 $124,401 3,379,598
2027............................................... 484,275 2,728,054 124,401 3,336,730
2028............................................... 441,678 2,728,054 124,401 3,294,133
2029............................................... 402,828 2,728,054 124,401 3,255,283
2030............................................... 367,395 2,728,054 124,401 3,219,850
2031............................................... 335,079 2,728,054 124,401 3,187,534
2032............................................... 305,606 2,728,054 124,401 3,158,061
2033............................................... 278,725 2,728,054 124,401 3,131,179
2034............................................... 254,208 2,728,054 124,401 3,106,663
------------------------------------------------------------
Total.......................................... 3,400,773 24,552,486 1,119,608 29,069,031
----------------------------------------------------------------------------------------------------------------
* Note values may not sum due to rounding.

Benefits of Rule
In addition to the expected cost savings of this rule, CBP
anticipates there will be some benefits, but CBP is unable to quantify
those benefits in this analysis. Transitioning to electronic ACH
refunds creates a significantly more efficient refund process. Trade
members would receive their electronic payments significantly more
quickly than mailed paper checks, which can be subject to delays in
delivery. CBP expects that trade members will benefit from receiving
their refunds sooner, allowing them to use refund amounts for other
business expenses or investments significantly sooner than they would
be able to use refunded amounts in mailed refund checks. CBP does not
know how much of a benefit this will provide to trade members and
requests public comments on these benefits and any other benefits
resulting from this IFR.
Net Impact of Rule
CBP anticipates that over the time period of analysis (2025-2034),
this IFR will result in an overall net cost savings compared to the
baseline. CBP estimates that from 2025-2034 this IFR will result in
total costs of approximately $14.9 million or on average $1.5 million
annually. Additionally, CBP estimates this IFR will result in
quantifiable cost savings of around $29 million or on average $3.3
million annually. CBP expects that total net cost savings, from
eliminating paper refund checks and transitioning to electronic
refunds, will be around $14.5 million or on average $1.4 million
annually. Table 13 displays CBP's estimates for total costs, cost
savings and net cost savings as a result of this IFR from 2025-2034.

[[Page 34]]

Table 13--Total Cost, Cost Savings and Net Cost Savings From Transitioning to Electronic ACH Refunds From 2025-
2034
[Undiscounted 2025 U.S. dollars]
----------------------------------------------------------------------------------------------------------------
Year Costs Cost savings Net cost savings
----------------------------------------------------------------------------------------------------------------
2025................................................... $1,551,734 ................. ($1,551,734)
2026................................................... 11,634,194 $3,420,185 (8,214,009)
2027................................................... 244,938 3,377,317 3,132,378
2028................................................... 203,653 3,334,720 3,131,067
2029................................................... 207,462 3,295,870 3,088,408
2030................................................... 211,363 3,260,437 3,049,074
2031................................................... 215,360 3,228,121 3,012,761
2032................................................... 219,456 3,198,648 2,979,192
2033................................................... 223,652 3,171,767 2,948,114
2034................................................... 227,953 3,147,250 2,919,297
--------------------------------------------------------
Total.............................................. 14,939,767 29,434,315 14,494,548
----------------------------------------------------------------------------------------------------------------
* Note values may not sum due to rounding.

Table 14--Total Monetized Present Value and Annualized Costs 2025-2034
[2025 U.S. dollars]
------------------------------------------------------------------------
3% Discount rate 7% Discount rate
------------------------------------------------------------------------
Present Value Cost................ $13,923,328 $12,755,414
Annualized Cost................... 1,632,239 1,816,084
------------------------------------------------------------------------

Table 14 shows the discounted total quantified costs from this IFR
from 2025-2034 compared to the baseline scenario. As shown, the total
costs over the 10-year period of analysis will range from $13.9 million
(in 2025 U.S. dollars) using a three percent discount rate to $12.8
million (in 2025 U.S. dollars) using a seven percent discount rate.
Expected total annualized costs from this final rule range from $1.6
million using a three percent discount rate to $1.8 million using a
seven percent discount rate.

Table 15--Total Monetized Present Value and Annualized Cost Savings 2025-
2034
[2025 U.S. dollars]
------------------------------------------------------------------------
3% Discount rate 7% Discount rate
------------------------------------------------------------------------
Present Value Cost Savings........ $25,516,795 $21,408,372
Annualized Cost Savings........... 2,991,347 3,048,071
------------------------------------------------------------------------

Table 15 shows the discounted total quantified costs savings as a
result of this IFR from 2025-2034. As shown, the total cost savings
over the 10-year period of analysis will range from $25.5 million (in
2025 U.S. dollars) using a three percent discount rate to $21.4 million
(in 2025 U.S. dollars) using a seven percent discount rate. Expected
total annualized cost savings from this IFR will range from $3.0
million using a three percent discount rate to $3.1 million using a
seven percent discount rate.

Table 16--Total Monetized Present Value and Annualized Net Cost Savings
2025-2034
[2025 U.S. dollars]
------------------------------------------------------------------------
3% Discount rate 7% Discount rate
------------------------------------------------------------------------
Present Value Net Cost Savings.... $10,850,260 $7,252,411
Annualized Net Cost Savings....... 1,271,981 1,032,580
------------------------------------------------------------------------

Table 16 shows the discounted total quantified net cost savings
during the period of analysis from this IFR. As shown, the total net
cost savings over the 10-year period of analysis compared to the
baseline will range from $10.8 million (in 2025 U.S. dollars) using a
three percent discount rate to $7.2 million (in 2025 U.S. dollars)
using a seven percent discount rate. Expected total annualized net cost
savings from this IFR will range from $1.3 million using a three
percent discount rate to $1.0 million using a seven percent discount
rate.

C. Regulatory Flexibility Act

The Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as amended
by the Small Business Regulatory Enforcement and Fairness Act of 1996,
requires an agency to prepare and make available to the public a
regulatory flexibility analysis that describes the effect of a proposed
rule on small entities (i.e., small businesses, small organizations,
and small governmental jurisdictions) when the agency is required to
publish a notice of proposed rulemaking for a rule. Since a notice of
proposed

[[Page 35]]

rulemaking is not necessary for this rule, CBP is not required to
prepare a regulatory flexibility analysis for this rule. 5 U.S.C. 603.

D. Paperwork Reduction Act

In accordance with the Paperwork Reduction Act of 1995 (44 U.S.C.
3507), an agency may not conduct or sponsor, and an individual is not
required to respond to, a collection of information unless it has been
approved by the Office of Management and Budget (OMB) and assigned an
OMB control number. However, this rule does not involve any material
change to an existing approved information collection, and the banking
account information for payments and credits is not covered by the
Paperwork Reduction Act (44 U.S.C. 3507). As such, this rule does not
affect any approved information collection.

Signing Authority

In accordance with Treasury Order 100-20, the Secretary of the
Treasury delegated to the Secretary of Homeland Security the authority
related to the customs revenue functions vested in the Secretary of the
Treasury as set forth in 6 U.S.C. 212 and 215, subject to certain
exceptions. This regulation is being issued in accordance with DHS
Delegation 07010.3, Revision 03.2, which delegates to the Commissioner
of CBP the authority to prescribe and approve regulations related to
customs revenue functions.
Rodney S. Scott, Commissioner, having reviewed and approved this
document, has delegated the authority to electronically sign the
document to the Director of the Regulations and Disclosure Law Division
of CBP, for purposes of publication in the Federal Register.

List of Subjects

19 CFR Part 24

Accounting, Claims, Exports, Freight, Harbors, Reporting and
recordkeeping requirements, Taxes.

19 CFR Part 141

Reporting and recordkeeping requirements.

19 CFR Part 159

Antidumping, Countervailing duties, Foreign currencies.

19 CFR Part 174

Administrative practice and procedure.

Amendments to the CBP Regulations

For the reasons stated above, amend parts 24, 141, 159, and 174 of
title 19 of the Code of Federal Regulations (19 CFR parts 24, 141, 159,
and 174) as set forth below.

PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE

0
1. The general authority citation for part 24 is revised to read as
follows:

Authority: 5 U.S.C. 301; 19 U.S.C. 58a-58c, 66, 1202 (General
Note 3(i), Harmonized Tariff Schedule of the United States), 1505,
1520, 1624; 26 U.S.C. 4461, 4462; 31 U.S.C. 3332, 3717, 9701; Pub.
L. 107-296, 116 Stat. 2135 (6 U.S.C. 1 et seq.).
* * * * *
Section 24.36 also issued under 26 U.S.C. 5001(c)(4),
5041(c)(7), 5051(a)(6), 6423; Pub. L. 115-97; Pub. L. 116-260; 134
Stat. 3046.

0
2. Revise Sec. 24.5(a) to read as follows:

Sec. 24.5 Filing identification number.

(a) Generally. Each person, business firm, Government agency, or
other organization shall file CBP Form 5106, Create/Update Importer
Identity Form, with the first formal entry which is submitted or the
first request for services that will result in the issuance of a bill
or a refund. A CBP Form 5106 shall also be filed for the ultimate
consignee for which such entry is being made. CBP Form 5106 may be
obtained from any CBP Office.
* * * * *

0
3. In Sec. 24.24, the last two sentences of paragraph (c)(8)(i), the
last sentence of paragraph (e)(4)(iii), and the last sentence of
paragraph (e)(4)(iv)(A) are revised to read as follows:

Sec. 24.24 Harbor maintenance fee.

* * * * *
(c) * * *
(8) * * *
(i) * * * A description of the cargo listed in the shipping
documents and a brief summary of the intended use of the goods, if such
use is not reflected in the documents, are acceptable evidence for
certification purposes. Approved HMF refund payments will be made via
ACH in accordance with 31 U.S.C. 3332, unless a waiver condition in 31
CFR 208.4 is met.
* * * * *
(e) * * *
(4) * * *
(iii) * * * Approved HMF refund payments will be made via ACH in
accordance with 31 U.S.C. 3332, unless a waiver condition in 31 CFR
208.4 is met.
(iv) * * *
(A) * * * Approved HMF refund payments will be made via ACH in
accordance with 31 U.S.C. 3332, unless a waiver condition in 31 CFR
208.4 is met.
* * * * *

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4. In Sec. 24.36, the introductory text of paragraph (a) and paragraph
(a)(3) are revised to read as follows:

Sec. 24.36 Refunds of excessive duties, taxes, etc.

(a) When it is found upon, or prior to, liquidation or
reliquidation of an entry or reconciliation that a refund of excessive
duties, taxes, fees or interest (at the rate determined in accordance
with Sec. 24.3a(c)(1)) is due, a refund shall be prepared in the name
of the person to whom the refund is due, as determined under paragraphs
(b) and (c) of this section, and issued electronically in accordance
with 31 U.S.C. 3332, unless a waiver condition in 31 CFR 208.4 is met.
If CBP Form 4811, submitted to CBP through a CBP-approved method,
authorizes someone other than the payee to receive a refund, CBP will
issue the refund electronically to the authorized person in accordance
with 31 U.S.C. 3332 and the waiver conditions in 31 CFR 208.4. If a
power of attorney is on file, the refund will be issued electronically
to such attorney, if requested. A CBP Form 4811 received by CBP will
not be effective if a customs transaction requiring the use of the
owner's importer number has not been made within three years from the
date the CBP Form 4811 was filed or if there is no unliquidated entry
on file to which such number is to be associated. For purposes of this
section:
* * * * *
(3) If a refund, including any interest thereon, is not paid in
full within the applicable 30-day period specified in paragraph (a)(2)
of this section, the refund shall be considered delinquent thereafter
and interest under 19 U.S.C. 1505(d) shall accrue on the unpaid balance
by 30-day periods until the full balance is paid. However, no interest
will accrue during the 30-day period in which the refund is paid.
Likewise, no interest under 19 U.S.C. 1505(d) will accrue when CBP
certifies an electronic refund for issuance within 30 days of the
liquidation or reliquidation of the entry, and CBP is unable to deliver
the electronic refund solely due to the recipient's failure to provide
CBP with the necessary banking information to effectuate delivery of
the electronic refund.
* * * * *

PART 141--ENTRY OF MERCHANDISE

0
5. The general authority citation for part 141 continues to read as
follows:

[[Page 36]]

Authority: 19 U.S.C. 66, 1448, 1484, 1498, 1624.
* * * * *

0
6. Revise Sec. 141.61(d)(1) through (3) to read as follows:

Sec. 141.61 Completion of entry and entry summary documentation.

* * * * *
(d) * * *
(1) Generally. Except as provided in paragraph (d)(2) of this
section, the importer number of the importer of record and the
consignee number of the ultimate consignee must be reported for each
entry summary and for each drawback entry. When the importer of record
and the ultimate consignee are the same, the importer number may be
entered in both spaces provided on CBP Form 7501 (boxes 22 and 23), or
its electronic equivalent, or the importer number may be entered in the
space provided for the importer (box 23, or its electronic equivalent)
and the word ``SAME'' may be entered in the space provided for the
ultimate consignee (box 22, or its electronic equivalent).
(2) Exception. In the case of a consolidated entry summary covering
the merchandise of more than one ultimate consignee, the importer
number must be reported on CBP Form 7501 (box 23, or its electronic
equivalent) and the notation ``CONSOLIDATED'' must be made in the space
provided for the consignee number (box 22, or its electronic
equivalent).
(3) When refunds, bills, or notices of liquidation are to be sent
to agent. If an importer of record desires to have refunds issued
electronically in accordance with Sec. 24.36, and bills or notices of
liquidation mailed in care of an agent, the agent's importer number
must be reported on CBP Form 7501 in the box designated ``Reference
No'' (box 24, or its electronic equivalent). In this case, the importer
of record must file, or must have filed previously, through a CBP-
approved method, a CBP Form 4811 authorizing the electronic issuance of
refunds, and the mailing of bills or notices of liquidation, to the
agent.
* * * * *

PART 159--LIQUIDATION OF DUTIES

0
7. The general and specific authority citations for part 159 continue
to read as follows:

Authority: 19 U.S.C. 66, 1500, 1504, 1624.
* * * * *
Section 159.6 also issued under 19 U.S.C. 1321, 1505;
* * * * *

Sec. 159.6 [Amended]

0
8. Amend Sec. 159.6 as follows:
0
a. In paragraph (c), remove the words ``refund checks'' and add in
their place the word ``refunds''; and
0
b. In paragraph (d), remove the words ``refund check'' and add in their
place the words ``a refund''.

PART 174--PROTESTS

0
9. The general authority citation for part 174 continues to read as
follows:

Authority: 19 U.S.C. 66, 1514, 1515, 1624.
* * * * *

0
10. In Sec. 174.13, paragraph (c) is revised to read as follows:

Sec. 174.13 Contents of protest.

* * * * *
(c) Optional designation for refunds. If desired by the importer/
consignee, the statement ``any refunds with respect to the entry under
protest shall be issued electronically in accordance with 31 U.S.C.
3332, unless a waiver condition in 31 CFR 208.4 is met, to the agent
designated by the importer/consignee:_____''

(Name and Address of Agent)

may be appended to the protest. This designation supersedes any
existing designation previously authorized on CBP Form 4811.

Robert F. Altneu,
Director, Regulations & Disclosure Law Division, Regulations & Rulings,
Office of Trade, U.S. Customs and Border Protection.
[FR Doc. 2025-24171 Filed 12-31-25; 8:45 am]
BILLING CODE 9111-14-P

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Electronic Refunds

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