ACH Debit Increase Considerations for Customs Duty Statements
Many importers pay customs duties and fees directly to U.S. Customs and Border Protection (CBP) via ACH debit. Due to the increase in the amount of duties owed, importers should review the cap set with their bank for payments to CBP.
If a statement exceeds the account limit, CBP is unable to debit the importer’s account, leading to the non-payment of duties and fees for the associated entry summaries. In turn, this leads to increased efforts to pay the funds due, and results in liquidated damages (penalties) for non-payment or late-payment of the funds. Importers on periodic monthly statement (PMS) may see significant increases associated with their monthly payments as the daily statements roll up to the monthly statement. In addition, repeat violations may lead to CBP removing the importer from participating in PMS and/or ACH payment privileges.
Importers should review their current liabilities and forecast for potential future increases to determine an appropriate level of funding for the account and for the debit voucher cap. Then they need to discuss with the financial institution to establish the higher dollar amount that is authorized to pay CBP.
If you are not currently paying duty/fees directly to CBP, we encourage you to consider this option. You can contact us for questions and CBP provides information available on their website:
Signing Up for Automated Clearinghouse | U.S. Customs and Border Protection.