Thursday, July 7, 2011

Pay Your Duties!

One of the main functions of U.S. Customs and Border Protection is to collect duties. What are "duties"? Duties are a form of tax that an importer has an obligation to pay. Inherent in the payment of duties is liability to which the government defines to be a personal debt due from the importer to the U.S. that can only be discharged by paying the FULL amount. There is no haggling with Customs!

Please be careful because the failure to pay your duties on time may result in an audit, penalties, and other legal consequences leading you to be on Customs bad side.

When is duty due?
A deposit of estimated duties are due during the time of your merchandise entering the U.S. Any additional duty found is due 30 days after liquidation (Liquidation means the final computation or ascertainment of the duties).

Customs duties are often paid by the importers customs broker who is clearing the shipments to be paid over to Customs. However, Customs Brokers are not agents of Customs and therefore payment of duties to your Customs Broker does not relieve you from liability if Customs is not paid.

Two ways to pay Customs: 1) Checks Payable to Customs which are delivered with a Customs entry; 2) Automated Clearing House which permits Customs to withdraw duties from your bank account - allows a 10 day window to pay AFTER entry.

Feel Free to e-mail me with any questions :)

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