White House No Longer Considering Duty Payment Deferral

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White House No Longer Considering Duty Payment Deferral

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08-Apr-20

White House No Longer Considering Duty Payment Deferral

In an interview with Bloomberg TV last week, National Economic Council Director Larry Kudlow stated that the White House was not considering a 90-day deferral of tariff payments. Kudlow said, "We never looked at any serious way of rolling back tariffs. The deal with China is in place. That's going to be implemented. USMCA is in place. We looked a little bit at most favored nation customs duties and decided it was too complicated and it might send the wrong signals. I would not expect to see any movement on tariffs right now."

With the above announcement and the impact of COVID-19, now is the time for your company to consider the Periodic Monthly (PMS) process. As importer of record with a continuous bond, your company can realize a significant cost savings by utilizing the PMS process under the ACE environment of CBP. 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!

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. And can be done by completing the ACH application and submitting to CBP via email (https://www.cbp.gov/trade/basic-import-export/automated-clearinghouse-ach). An ACH payer unit number will be emailed to the importer within 2 weeks. Once your ACH account is established, John S. Connor 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 John S. Connor customers!

Please contact your sales or operation representative for further details or JSC compliance department, priscillar@jsconnor.com