Benefits of Using ACH & PMS
October 17, 2019 Posted by normanadmin
Customs Automated Clearinghouse (ACH) is an electronic payment option that allows participants to pay customs fees, duties, and taxes electronically, as well as receive refunds of customs duties, taxes and fees electronically. ACH automates the payment process for importers in a secure environment. ACH provides importers a fast and paperless method of paying duties and fees and receiving refunds.
Applying to participate in CBP ACH is simple. Importers fill out an application, when the application is received and approved, you will be assigned a unique payer identification number.
What is the ACH process? Norman Krieger, Inc. will transmit the payment authorization to Customs through the Automated Broker Interface (ABI). Norman Krieger, Inc. sends one ACH payment authorization per statement. We will receive a confirmation message that the ACH payment has been accepted. After ACH payment authorization is approved, funds transfer begins, the importer is debited and Customs is credited with the amount due. ACH is secure, accurate, and eliminates the time-consuming methods of using cash or checks to pay duties, taxes and fees.
Benefits of using ACH include:
Obtain up to an additional 10 days to pay duties, taxes, and fees on quota and other special merchandise classes.
Reduce administrative processing and costs.
Pay all ABI statements in a central location.
Eliminate lost or stolen check problems.
Control cash flow by identifying the exact day to allocate funds.
Norman Krieger, Inc. will notify you electronically of the acceptance of your ACH payment. We can send you the advanced ACH report that will include the duty calculations, covered shipments, and their value. We can adjust the automated ACH system to provide the payment alert on the day you choose.
Another benefit to participating in Customs ACH is the opportunity to use Periodic Monthly Statement (PMS). Once you have established your ACH account, Norman Krieger, Inc. may apply for PMS processing on your behalf. The application usually takes about 3 business days to process.
PMS processing allows importers to deposit duties on the 15th business day of the month following the month in which goods were released. Therefore, goods released between the first and the last day of the month may be scheduled for payment on the following month’s periodic monthly statement. There are no interest charges for payments made through PMS.
For example, if your goods are released on July 1, 2019, duties would normally be due in 10 business days on July 16, 2019. Through PMS, your duty payment would not be due until the 15th business day of August which is August 21, 2019. If your goods are released on July 31, 2019, duties would normally be due on August 14, 2019. Through PMS, your duty payment would be due on August 21, 2019.
PMS allows importers to have a once a month duty payment, which positively affects cash flow. Importers will receive preliminary periodic daily statements 10 business days after the release of a shipment. This includes the individual entry numbers and the amounts due for each entry. The following day you will receive the final periodic daily statement confirming the entry summaries were accepted by Customs.
On the 11th business day of the month following the month the goods were released, you will receive a preliminary periodic monthly statement. This will list the periodic daily statements to be paid on the monthly statement. When the PMS statement is paid on the 15th business day of the month, you will receive a final periodic monthly statement.
For more information or any questions, please contact Ron Escopete at firstname.lastname@example.org, Maria Abrego at email@example.com, or Marquis Blanc at firstname.lastname@example.org.