ACH (Automated Clearinghouse) is an electronic payment system that allows businesses to pay duties, taxes, and customs fees in the United States. This process avoids using checks or manual payments, making transactions faster, more accurate, and more secure.
- Fast and secure electronic payments.
- Reduction in administrative costs and processing errors.
- Elimination of risks associated with lost or stolen checks.
- Precise control over payment timing.
- ACH Debit: Authorize U.S. Customs and Border Protection (CBP) to debit your bank account.
- Requires registration and a Payer Unit Number (PUN).
- Ideal for automating payments and managing cash flow.
- ACH Credit: Initiate payments yourself through your bank.
- Offers better control over the timing and amount of payments.
- Suitable for businesses wanting direct control over their payments.
Criteria | ACH Debit | ACH Credit |
Payment initiation | Initiated by CBP with your authorization. | Initiated directly by the importer or their bank. |
Flexibility | Authorize automatic payment for a specific amount. | Choose when and how much to pay. |
Security | Bank data is secured via a unique PUN. | Complete control over funds. |
Cost | Low administrative costs; no manual processing fees. | Cheaper than FEDWIRE but requires vigilance. |
Risk of error | Low, as CBP validates the transaction. | Higher if amounts or deadlines are incorrect. |
- Have a bank account with a U.S. branch or be a customer of a Canadian bank that is a NACHA member (e.g., National Bank, RBC, BMO).
- Provide a federal identification number (e.g., tax ID number, social security number, or CBP-assigned number).
- New registrations take approximately 15 business days once all documents are submitted without errors.
- Changes to an existing account take three business days.
You can set up a separate bank account exclusively for ACH payments, allowing better fund management.
- In case of errors, CBP will send you an error message for correction.
- Overpayments are handled through the standard customs refund process.
The PUN is a unique identifier assigned to each business enrolled in the ACH Debit program. It is used to secure payments and avoid transaction identification errors. This number is required for all payment authorizations.
Yes, several major Canadian banks, such as:
- National Bank of Canada
- Bank of Montreal (BMO)
- Royal Bank of Canada (RBC)
- TD Canada Trust
- HSBC Bank Canada
These banks must be NACHA participants with a U.S. branch. Please confirm the process with your bank.
- ACH Debit Form (Form 400) or ACH Credit Form (Form 401) based on your choice.
- Written verification from your bank, including:
- Bank routing number.
- Bank account number.
- Any additional documentation required for foreign accounts, including U.S. branch details.
- ACH payments must be initiated at least one business day before the settlement date for ACH Credit options.
- ACH Debit authorizations must be submitted when you send your statement to CBP.
- For banking information updates or corrections, use the relevant form to report a change:
- Simple updates: 3 business days for processing.
- For significant errors: Contact CBP immediately to avoid penalties or payment delays.
PMS consolidates all duty and tax payments for a given month.
Benefits:
- Deferred payment until the 15th working day of the following month.
- Simplified cash-flow management.
- Better expense forecasting through ACE-generated reports.
Requirements:
- A continuous bond.
- Enrollment in the ACH program (Debit or Credit).
For further information, please consult our Guide: How to Participate in Periodic Monthly Statements.