In 2018, the S232 and S301 tariffs have increased duty payments to Customs and Border Protection (CBP) by up to 25 percent. Ultimately, this affects the daily duty payments to CBP and the subsequent billing from Ascent Global Logistics. We predict that duty outlay could be up to six times more per month than in months previous to the S232 and S301 tariffs.
The duty liability for the importer is increasing. To better manage this duty outlay as well as credit terms with their broker, importers are encouraged to apply for and begin managing their own duty payments to CBP with the assistance of their broker through the statement process.
Revenue collection is one of the oldest functions of CBP and The Code of Federal Regulations 19, Chapter 141.1 notifies the importer that the duties and taxes and liability for paying them constitutes a personal debt due from the importer to the United States, only satisfied by payment in full. To learn more about importer collections, click here.
If the importer wishes to participate in ACH Debit or Credit, they will complete an ACH application and submit to CBP after confirming that their bank is a NACHA participant with Electronic Data Interchange capability.
The application is then sent to CBP via email and the normal application processing time is 7 to 10 business days. The Revenue Division of CBP will notify the importer in writing of the newly assigned PAYER UNIT NUMBER and the effective date for ACH participation should they choose ACH Debit. Upon receipt of that number, the importer provides the UNIQUE PAYER UNIT NUMBER to their broker to set up Importer ACH processing in their ABI system. The Revenue Division will also provide a payment format and data requirements that must be given to the importers bank should they choose the ACH Credit option.
Once ACH Debit OR Credit is set up, the broker will begin processing the duty payments for the importer on their own statement, providing information at time of statement preliminary print date to the importer so the importer can confirm payment to CBP. The broker can also provide information at the time of the statement final payment, verifying the final amount paid to Customs.
One other option that many importers consider is participation in Periodic Monthly Statement (PMS) processing. PMS allows the importer to have up to 45 days to pay their duty to Customs. Entries released from CBP from the 1st of the month to the last day of the month will be due around the 15th of the following month, giving up to a 45 day float period.
The importer must be approved for PMS processing by CBP but the request can be made at the time of application for ACH processing. If CBP approves PMS processing, the client can notify their broker that they have been approved and the broker will process their statement accordingly. Importer ACH provides the importer with a tool to manage their duty and taxes efficiently and effectively, in tandem with their broker, while also managing their credit terms.
For additional information about the ACH Debit or Credit application process or the management of Importer ACH, please contact us or reach out to your Ascent Global Logistics representative directly.