Benefits of an ACH Account
Written by Bonita Fowlersmith
Updated at July 27th, 2024
Importers have various options for paying duty payments on shipments, and one such option is setting up an account directly with US CBP, allowing duties to be debited via ACH on their due date. The CBP Automated Clearinghouse (ACH) is an electronic payment option that enables importers to pay customs fees, duties, and taxes electronically while also receiving refunds of customs duties, taxes, and fees electronically. ACH offers a fast, paper-free method for paying duties and fees while receiving refunds on paid duties and fees, thereby automating the payment of duties and fees on imported merchandise. The crucial requirement for using this option is that your company has a continuous customs bond with CBP.
Benefits of an ACH account include:
- Save money by avoiding disbursement fees associated with having your forwarder pay duties on your behalf.
- Receive up to an additional 10 days to pay duties, taxes, and fees on quota and other select merchandise classes.
- Eliminate lost or stolen checks and reduce delays and risks associated with receiving Treasury checks through the mail.
- Mitigate security risks by enabling automatic electronic payments to U.S. Customs.
- Pay all Automated Broker Interface (ABI) statements in a central location.
- Reduce administrative processing time by decreasing time spent balancing your books.
We highly recommend combining this approach with applying for a Periodic Monthly Statement (PMS), which adjusts your duty payment terms to be settled on the 15th of the following month. This change could potentially grant you up to 45 days of credit! Many clients appreciate the increased predictability that PMS brings to their cash flow. Please don't hesitate to contact our team if you'd like to apply for an ACH account or have any questions regarding U.S. Customs and duties.