Until Customs and Border Protection (CBP) introduced the Periodic Monthly Statement (PMS) in August 2007, duties and fees were due no later than 10 business after the release was issued. Remarkably, over 10 years later, many importers and forwarders still aren't taking advantage of this tool to extend cash flow. Here's what you need to know.
PMS streamlines the payment of duties and fees by allowing importers to pay duties on the 15th business day of the month following the release of the shipment. For example, if your shipment is released on January 5, the duties will be paid on February 21. That's a healthy 46 day payment term, interest free!
Some other important notes:
- To qualify for PMS, an importer must have a continuous bond
- The PMS application takes 3 to 4 weeks for CBP to process
- The entry will be assigned to a Periodic Daily Statement 10 business days after the entry is released; INLT Inc. will continue to authorize these
- CBP will issue a Preliminary Periodic Monthly Statement on the 11th business day of the month following release; this statement reflects the total amount to be debited on the 15th business day of the month
- A Final Periodic Monthly Statement will be posted upon receipt of the payment; this is, effectively, a receipt for payment
If you have questions concerning PMS, how to apply, or how to manage the program, feel free to contact us at email@example.com.