This is a quick guide for importers to set up Periodic Monthly Statements (PMS) with Customs.
Now in any transfer, two people are involved. One who pays and one who gets paid. In ACH terms, they are called the originator and the receiver. An ACH Debit occurs when a customer authorizes the merchant to make a transaction. On the other hand, when money actually gets deposited into a Receiver’s account, it is called an ACH Credit. There are two corresponding banks involved in the transaction: Originating Financial Depository Institution (ODFI) and the Receiving Financial Depository Institution (RDFI).
Your company can realize a significant time savings with by setting up an ACH with Customs and receiving PMS.
By using PMS processing, importers may deposit duties on the 15th business day of the month following the month in which the goods are released. This means merchandise released on the first to the last day of the month can be scheduled for duty payment on the following month’s Periodic Monthly Statement. This eliminates the need to process duty payments on a transaction by transaction basis. Customs does not assess any interest charges for payments made via PMS.
If your shipment is released on August 1, 2020, duties would normally be due in 10 business days on August 15, 2020. Under PMS, your duty payment would not be due until the 15th business day of September which is September 24, 2020. You have just gained a float of 40 days. Let’s say your shipment is released on August 31, 2020. Duties would normally be due on September 17, 2020, ten business days after the release. With PMS, your duty due date is September 24, 2020, one week later.
PMS streamlines duty statement processing while also positively impacting your cash flow. You can have a once a month, interest free duty payment. With PMS, Customs has effectively extended your payment terms. This gives your company flexibility in managing the working capital required for duty payments.
How to Get Started
The first step to paying your duties via Periodic Monthly Statement is to set up an ACH account with Customs. This is a very simple process. Simply fill out Customs’ ACH Application and submit to Customs – you can do this via e-mail, fax, or regular mail. Customs will send you an ACH payer unit number in about 2 weeks. Once your ACH account is established, Zeus can apply for PMS processing on your behalf. The PMS application takes about 3 business days to process. There is no charge for this service for Zeus customers.
Once approved for PMS processing, Zeus can switch you over very easily. Entries currently in the pipeline will work their way through in about 2-3 weeks until all files are processed with PMS.
You will receive preliminary periodic daily statements 10 business days after the release of the shipment. This will give you the individual entry numbers and amounts due for each entry. The following day you will receive a final periodic daily statement letting you know the entry summaries were accepted by Customs. Some importers opt to receive only the final periodic daily statement instead of the preliminary and final periodic daily statements. It is your choice.
On the 11th business day of the month following the month of release, you will receive a preliminary periodic monthly statement. This will list the periodic daily statements to be paid on the monthly statement. You should use the preliminary periodic monthly statement to ensure you have sufficient funds in your account for the payment date on the 15th business day of the month. Once the PMS statement is paid on the 15th business day of the month, you will receive a final periodic monthly statement.
We can direct each type of statement to whomever you’d like via e-mail. For more information on PMS or if you have any questions, please contact us.