Utilizing ACH to Mitigate Error and Streamline Payments to CBP

An automated clearing house (ACH) is a funds-transfer system that is operated by the National Automated Clearing House Association (NACHA). This system deals with a plethora of different payment services such as direct deposits, refunds, and bank withdrawals. The NACHA uses this system to improve the efficiency of business operations. “CBP uses ACH to allow participants to pay fees, taxes, and receive refunds electronically. ACH automates the payments and makes deposits in a fast and paperless manner to increase efficiency and to eliminate the risk associated with check processing. “[1]

 CBP offers three ACH options: 

1. ACH Debit - is often available to people who are using a statement processing system. This method allows an authorized agency to take funds from your account periodically and use those funds to make payments. This is beneficial because it allows the user to make payments more efficiently without the need for writing checks. This system isn’t perfect however, billing errors and overdraft do happen, so it is imperative to regularly check with your financial institution.
2. ACH Credit - is most commonly used as a form of direct deposit. The listed financial institution sends the payment through the ACH network which is then sent to CBP.  This Eliminates the need to send checks, while also reducing the associated administrative check processing cost.
3. ACH Refund - allows people to receive a refund resulting from overpayments of any taxes and fees. ACH will automatically issue the refund and send it to the appropriate financial institution. This helps to lower administrative cost associated with depositing funds, while also eliminating the need to issue checks.

In order to take part in the ACH program, your U.S financial institute must be a NACHA participant with Electronic Data Interchange capabilities. If you’re using ACH through a customs broker, the customs broker must file entries under “The Automated Commercial Environment (ACE) which is the primary system through which the trade community reports imports and exports and the government determines admissibility.” [3] This system allows the broker to effectively comply with all U.S. laws and regulations.

What Allyn Can Do For You

ACH system can be very beneficial if used properly. Importers who opt to use this system can expect to reduce administrative cost, Along with mitigating errors by brokers who make payments directly. With over 25 years’ experience, Allyn International can help with the ACH process. For more information on how Allyn International can assist you, contact allyncustoms@allynintl.com.

Contributor: Andrew Arias

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About Allyn International

Allyn International is dedicated to providing high quality, customer centric services and solutions for the global marketplace. Allyn's core products include transportation management, logistics sourcing, freight forwarding, supply chain consulting, tax management and global trade compliance.  Allyn clients range from small local businesses to Fortune 500 firms. Allyn conducts business in more than 20 languages and has extensive experience in both developed and emerging markets. Highly trained experts are positioned throughout North America, Europe, and Asia. Allyn’s regional headquarters are strategically located in Fort Myers, Florida, U.S.A., Shanghai, P.R. China and Prague, Czech Republic. For more information, visit www.allynintl.com.

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Resources 

[1] https://www.cbp.gov/trade/automated/ach

[2] http://www.investopedia.com/terms/a/ach.asp

[3] https://www.cbp.gov/trade/automated