Dear BOC Customer,
Due to the new US Government increased tariffs, BOC is offering its clients three options in regard to managing the new increased U.S. Customs Duties and Taxes paid on imported cargo:
- Sign up for the free ACH direct pay program with U.S. Customs. This is the most secure, compliant and economical option. It is free, and customs gives you extended monthly credit terms.
- Pre-pay BOC duties via ACH before arrival and release of the goods.
- Pay BOC an outlay fee of 5% on all duties (min $25) with NET 10 days terms.
In regard to the ACH direct pay advantages, please note the below.
- Eliminates the “pass through” person and you pay customs directly. This assures customs get paid timely and in full.
- When using US Customs’ ACH Direct along with the optional Periodic Monthly Statement (PMS) payment program, the direct importer will net longer payment terms on average than the credit terms BOC allows. ACH direct Periodic Monthly Statement gives the direct importer the ability to pay duties for goods that are released during a given month as late as the 15thworking day of the following month. This not only provides additional flexibility in the management of your working capital but provides significant cash flow advantages with some entries getting up to 45 days credit depending on the day the entry is cleared.
- 68% percent of all duty payers are utilizing Periodic Monthly Statement as it is now an industry “best practice”.
- Most custom brokers are now charging a fee on duties because of the large percent increases on the monies being outlaid due to the new import tariffs. BOC will also be implementing an outlay fee program in 2019. Starting January 1, 2019, all customers will be charged a 5% outlay fee for any duty outlay unless duties are prepaid before arrival or the customer has joined US Customs’ ACH direct program.
Thank you for all your support and the partnership to date. We appreciate you considering to join the US Customs ACH Direct and PMS programs. Please contact your local BOC Office or Sales Representative with any questions.
BOC International, Inc