New Customs Programs Provide Financial Benefits To Importers

The gradual implementation of the Bureau of Customs and Border Protection's (CBP) Automated Commercial Environment (ACE) system has introduced a number of innovative programs, which in addition to enhancing CBP's abilities to gather and process information also benefits the trade in a cost-effective manner. One such program is the recently successfully tested Periodic Monthly Statement Process.

Through the Periodic Monthly Statement Process, importers and brokers are able to make a single monthly duty payment on virtually all imported goods rather than paying duties on an entry-by-entry basis. As a result, importers and brokers who now pay duties and fees to Customs multiple times monthly can reduce this obligation to once a month. Specifically, under the Period Monthly Statement Process participants are permitted to deposit the estimated duties and fees on a monthly basis based upon a periodic monthly statement issued by CPB. Participating importers and their designated customs brokers are allowed to deposit the estimated duties and fees not later than the 15th calendar day of the month following the month in which the goods are either entered or released, whichever occurs earlier.

Under the program entries, which are scheduled for monthly payment, will be listed on a Periodic Daily Statement that will be generated by CPB. These statements may be created on a port basis by an importer or broker or on a national basis by an ABI filer. The entry summaries for entries scheduled for monthly payment must be filed within 10 working days of the entry date. Once the entry summary information is filed the scheduled entries will appear on the Final Periodic Daily Statement. The entries appearing on the Final Periodic Daily Statement and scheduled for monthly payment will then appear on the Preliminary Periodic Monthly Statement which will be generated by CPB on the 11th calendar day of the month after the month in which the merchandise scheduled for monthly payment was entered or released. On the 15th of the month, or the previous business day if the 15th falls on a weekend or holiday, the duties and fees are due and must be paid through either an ACH debit or credit. Thereafter, CPB will generate and transmit to the importer or customs broker a Final Periodic Monthly Statement indicating payment has been received.

The immediate and obvious benefit of the Periodic Monthly Statement Process is that by not having to pay duties and fees on entries until the 15th day of the month following the month in which imported merchandise has been entered or released an importer can maintain funds in its own financial institutions where interest can accrue for periods of up to 45 days. Alternatively, importers whose accounts receivable are delinquent are, in effect, being offered a float by the U.S. Government which is no longer demanding the tender of applicable duties and taxes within ten working days of the date of entry or release of imported goods.

DCWILLIAMS&ASSOCIATES strongly encourages importers to participate in the Periodic Monthly Statement Process and avail themselves of these potential savings in the cost of doing business when importing goods into the U.S.

We are available to assist importers and other companies engaged in the international trade of goods and services with regard to this and all other related trade and customs issues.

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