US Propels Electronic Customs Refund, CBP Conducts Vital Upgrade of ACE System

The United States Customs and Border Protection (CBP) announced on Tuesday, January 6th, that they have recently made two upgrades to the Secure Data Portal of the Automated Commercial Environment (ACE) system. These upgrades are aimed at helping users prepare for the transition to electronic refunds on February 6th, which is expected to expedite the refund process for the trading community.

The Automated Commercial Environment (ACE) system is a modernized commercial trade processing system used by CBP to facilitate legitimate trade and enhance border security. Through this system, the U.S. government can track, control, and process all inbound and outbound goods.

Designed to improve the collection, sharing, and processing of information submitted to CBP and other Partner Government Agencies (PGAs), ACE allows international traders to electronically report goods and data to CBP. Government agencies use ACE to collect, track, and process the necessary trade information to determine whether goods are allowed entry.

The ACE portal serves as a centralized platform that connects CBP and other collaborating government agencies with the trading community, providing real-time access to trade transactions and data.

The first upgrade introduces a secure online tool for authorizing electronic refunds, while the second upgrade simplifies the process for importers to apply for account setup. These improvements aim to help users prepare for using the electronic refund process.

CBP stated that these upgrades enable automated processing, allowing businesses to cooperate with CBP more easily, quickly, and securely while managing their customs transactions online to enhance efficiency and safeguard economic and national security.

Susan S. Thomas, the Acting Executive Assistant Commissioner for CBP’s Office of Trade, emphasized the significance of the ACE system upgrades for both the trading community and CBP. She highlighted that the upgrades bring secure electronic refunds, faster payments, reduced errors, and simplified procedures for importers, customs brokers, and refund recipients.

In a recent Interim Final Rule titled “Electronic Refunds,” published in the Federal Register on January 2nd, 2026, CBP mandated that almost all customs duty refunds and other refunds must be made via ACE transfer payments starting on February 6th, 2026. Only recipients exempted under section 208.4 of the Federal Regulations will be allowed to continue using paper checks.

This initiative aims to phase out traditional paper refund methods gradually, avoiding unnecessary costs and delays, enhancing security, and preventing financial fraud and improper payments.

The two upgrades outlined in the “Electronic Refunds” rule align with Executive Order No. 14247 signed by President Trump in March 2025, titled “Modernizing Payments To and From America’s Bank Account.” This order mandates federal agencies to adopt electronic payments within the legal framework to prevent check fraud and reduce processing costs. CBP estimates that achieving full-scale digital payments can save the government millions in postage and reissuance fees for the approximately 30% of annual $2 billion refunds currently paid electronically.

For the latest updates on the ACE portal and ACH refund process, businesses can refer to the following resources:

– ACE Portal ACH Refund Registration Information Notice.
– Importer Automated ACE Portal Application Information Notice.
– CBP’s ACH Refund webpage.

Businesses can also follow CBP’s Office of Trade on Twitter and LinkedIn for further updates.