Imagine working hard to pay import tariffs, finally qualifying for a refund—only to lose it because of incorrect payment methods. This isn’t hypothetical but an imminent reality. U.S. Customs and Border Protection (CBP) has officially announced a full transition to electronic tariff refunds, effective February 6.
The change stems from an executive order by former President Trump, shifting all federal disbursements to electronic payments. More critically, the Supreme Court is expected to rule on the legality of tariffs under the International Emergency Economic Powers Act (IEEPA) by early 2026, potentially triggering widespread refunds. Businesses that may qualify for tariff refunds—including potential IEEPA-related reimbursements—must act now.
Companies must immediately verify whether they have set up Automated Clearing House (ACH) electronic payments or designated a customs broker to receive refunds on their behalf. Without an ACH account, refunds cannot be processed directly. Waiting until refunds are issued to address this issue could result in irreversible losses.
Detailed guidelines were published by CBP in the Federal Register on January 2. Businesses with questions are advised to consult professional advisors to ensure compliance. While the Supreme Court’s final ruling remains pending, proactive preparation is essential. With 2026’s trade landscape uncertain, early action ensures businesses maintain a competitive edge.