Paying CBP, and the choice most importers never make

Duty gets paid on every entry, and almost nobody decides how. It defaults to whatever the broker set up, which is usually the broker paying CBP and invoicing you. There is a better arrangement available for most importers, it costs nothing to set up, and it improves your cash position by up to about a month. We run electronic payment on every entry we file and we will tell you which arrangement fits.

Who actually pays CBP

There are two arrangements. Your broker pays CBP out of its own account and bills you, which is simple and is how most small importers start. Or you pay CBP directly by ACH from your own account, with the broker filing the entry and the payment following automatically.

Paying directly is generally better once you have any volume: the money moves once instead of twice, there is no broker advance to be funded or charged for, and your own records show the duty paid to the government rather than reimbursed to an agent.

The periodic monthly statement, which is free money

By default duty is due entry by entry, within ten working days of release. On the periodic monthly statement, entries made during a month are grouped and paid once, on the fifteenth working day of the following month.

For a steady importer that is a meaningful and permanent improvement in working capital, for no fee and no interest. It is one of the few things in customs that is simply better with no trade off, and the reason more importers are not on it is that nobody offered it to them.

What it takes to set up

An ACH debit authorisation with CBP and, for the statement, enrolment through your broker. It is paperwork rather than a negotiation, and it takes a matter of weeks rather than months.

We handle the filing side and tell you exactly what your finance team has to sign. The bank details stay yours; we never need access to the account.

What happens when a payment is late

Late duty accrues interest, and persistent late payment puts your continuous bond and your statement privilege at risk. That is a slow problem that becomes a sudden one, usually at the worst time.

We watch the statement dates on entries we file and flag them before they are due rather than after. That is unglamorous work and it is most of what a broker is for.

FAQ

Can I pay CBP directly instead of through my broker?

Yes, by ACH from your own account, with us filing the entry. For most importers with any volume that is the better arrangement: the money moves once, and your records show duty paid to the government rather than reimbursed to an agent.

What is the periodic monthly statement?

Duty on entries made during a month is grouped and paid once, on the fifteenth working day of the following month, instead of entry by entry within ten working days of release. No fee, no interest, a permanent improvement in working capital.

Is there a cost to setting up ACH or the statement?

No fee from CBP. It is paperwork: an ACH authorisation and, for the statement, enrolment through your broker. We handle the filing side.

Do you need access to our bank account?

No. The authorisation is between your company and CBP. We file the entries and the payment follows automatically.

What happens if duty is paid late?

Interest accrues, and repeated lateness can put your continuous bond and your statement privilege at risk. We flag statement dates before they are due.

Find out which payment arrangement fits

Tell us roughly how many entries you file a month and we will tell you whether the monthly statement is worth setting up.

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