Automated Clearing House (ACH) is an electronic payment option that allows participants to pay U.S. Customs duties, taxes, and fees directly to CPB electronically and integrates with the Automated Commercial Environment also known as ACE. By enrolling in ACH, your benefits include:
· Convenience: Payments can be automated and made directly from your bank account to U.S. Customs
· Cost Savings: Eliminates fees such as disbursement fees, processing fees, and wire transfer fees.
· Accuracy: Reduces errors associated with manual payment
· Periodic Monthly Statement (PMS): Allows up to 45 days to submit payment.
When applying for Automated Clearinghouse (ACH) processing with U.S. Customs, you have two available options: ACH Credit or ACH Debit. Please note that only one method may be selected, so we recommend evaluating which option best aligns with your company’s financial processes and preferences.
Both ACH Credit and ACH Debit are secure and reliable methods for transferring funds to U.S. Customs. However, before submitting your application, we encourage you to review the key considerations associated with each method to ensure smooth implementation.
ACH Debit
· Payment Initiated by U.S. Customs
· ACH Debit allows U.S. Customs to automatically deduct payment from your account.
· Entries are consolidated and paid daily unless you are approved for periodic monthly payments then entries are consolidated and paid monthly.
· This method ensures timely payment of your duty, taxes, and fees and ensures payment deadlines are met.
· Your account must be funded properly so payments can be deducted without incident.
ACH Credit
· Payment Initiated by the importer through their bank.
· ACH credit requires you to authorize your payment to U.S. Customs.
· Entries are consolidated and paid daily unless you are approved for periodic monthly payments then entries are consolidated and paid monthly.
· If payments are not made on the scheduled due date, late file penalties may occur.
· If payments are not made timely, ACH privileges may be revoked.
When applying for ACH Debit or ACH Credit, there are some common errors importers should be mindful of, as they can result in payment rejections. Some of the most frequent issues include:
· Utilizing the wrong tax ID number when submitting your ACH application
o You should confirm the Tax ID number Willson International has on file for your account. You may have been assigned a U.S. Customs assigned number.
o Check your U.S. Customs entry documents. Your Tax ID number will be listed on the CF7501 under box 23, Importer Number.
· Failing to authorize payment to U.S. Customs when utilizing ACH Credit, or failing to fund your account when utilizing ACH Debit
o U.S. Customs will issue a payment notice requiring a Fed Wire payment within two days.
o ACH privileges may be revoked.
· Requesting Periodic Monthly Statement (PMS) without understanding the requirements
o A U.S. Customs Continuous Import bond is required to be approved for PMS privileges. If you do not have a U.S. Customs Continuous Import bond, please ask Willson International for more information on the advantages of having a U.S. Customs continuous import bond.
o Monthly payments are due on the dates U.S. Customs has scheduled and must be followed. You can find the PMS schedule here Periodic Monthly Statement (PMS) Dates for 2025
o If you are interested in PMS, please let us know. Willson International can assist you with your PMS approval.
It is essential to understand how to effectively manage your ACH account. While Willson International will provide you with your ACH statements daily, we highly recommend applying for an ACE portal account. The portal offers 24/7 access to your ACH statements and allows you to generate reports or set up customized reporting based on your needs.
The ACE Portal application process is straightforward, and we are happy to assist you with completing your application. Please see the link below for additional information along with a video tutorial on the ACE portal.
Please keep in mind that participation in the Automated Clearinghouse (ACH) program is a privilege granted by U.S. Customs to facilitate the timely payment of duties, taxes, and fees. This privilege may be revoked at any time if your account is not adequately funded or if payment authorization is not provided in a timely manner. Ensuring proper account management is essential to maintaining your ACH privileges.
For additional information on applying for ACH with U.S. Customs, please see the link below or contact us at Transitionteamus@willsonintl.com