Once again, the US levied additional duties and tariffs on imported merchandise from countries worldwide.
We want to remind you that Customs and Border Protection (CBP) offers credit on import duty payments. This program allows for electronic Automated Clearinghouse (ACH) payments of duties to be made daily or once a month. Known as a periodic monthly statement (PMS), the duties incurred on shipments imported during each calendar month are payable on the fifteenth business day of the following month.
Essentially, giving you, as the importer, between 20 and 45 days of credit!
What is the benefit of this program?
ACH payments provide cash flow and cost savings benefits.
CBP offers this program directly to importers, so there are no interest or advance fees from your broker. You can pay duties for each shipment individually or under the PMS program; pay all your duties for the month on one statement. Additionally, you can allow CBP to pull the funds (ACH Debit) or push them (ACH Credit) from your checking or zero-balance bank account.
ACH is an entirely safe way to pay your duties without interest.
Another benefit is that Coppersmith will not charge you advance fees for the considerable outlay of duties we currently pay on your behalf. During this time of increasing tariffs, Coppersmith cannot be responsible for paying your duties without charging an Advance fee–currently 5% of the outlay.
Why pay this when you can pay directly interest-free?
How do I get signed up?
The first step is to complete an ACH application and obtain an ACH Account with CBP. Once CBP has verified bank account information, your company will be assigned an ACH Payer Unit Number (PUN). This number allows you to pay duty directly to CBP for your daily statements, typically eight business days after CBP releases the shipment.
Your company may also be eligible for the Periodic Monthly Statement (PMS).
Once approved, CBP will withdraw duties for all shipments released in a calendar month, just once, on the 15th business day of the following month. Coppersmith will provide you a monthly statement detailing your previous month’s shipments, duty amounts, and the due date that CBP will withdraw the funds from your bank before the CBP makes the ACH withdrawal.
Need help completing your ACH application or understanding your eligibility for PMS? Contact Coppersmith today and let our team walk you through the process so you can stop overpaying and start taking control of your import duty strategy.
