Automated Clearinghouse (ACH)

A.C.H. APPLICATION

Customs Automated Clearinghouse (ACH) is an electronic payment option that allows participants to pay Customs fees, duties, and taxes electronically, as well as receive refunds of Customs duties, taxes and fees electronically. ACH is a straightforward procedure accomplished through a series of simple electronic transactions. Throughout the process there are no paper payments and no cashiers.

ACH automates the time consuming method of using cash and checks to pay duties and fees on imported merchandise. ACH also automates the time consuming process of depositing Treasury checks, eliminating the delay and risk associated with receiving Treasury checks through the mail. The accuracy and speed of ACH results in a higher volume of completed transactions for the importer and Customs, saving time and money. ACH fulfills the need for swift, accurate payment transfers in today's competitive business environment.

Customs offers three ACH options:

ACH Debit, ACH Credit, and ACH Refund.

ACH Debit is available to ABI filers using statement processing and can be used to pay all Customs duties, taxes, and fees. (For information on ABI and statement processing, see Customs Automated Broker Interface page.)

For information about ACH Debit, please contact (317) 298-1200 x1098.

ACH Credit is available to anyone that clears formal entries on statements. In order to be on ACH Credit, the company or filer must be on ABI and Statement processing.

For information about ACH Credit, please contact (317) 298-1200 x1357.

ACH Refund is available to anyone who has a taxpayer-assigned identification number, an U.S. bank account, and who expects to receive a refund from U.S. Customs.

For information about ACH Refund, please contact (317) 298-1200 x1178.

Answers to Your ACH Questions

General ACH Questions

Q: Does my bank have to be an ACH participant?

A: Yes. Your bank must belong to the National Automated Clearinghouse Association (NACHA).

Q: Do I have to have a specific type of bank account to participate?

A: No. As long as your account is a transaction account, such as checking, savings, or disbursement, it can be used for ACH.

Q: Will my bank charge me for using ACH?

A: Currently, most banks do not charge for using ACH. Ask your financial institution about the costs, and be sure to specify that the transaction is a next day transaction, not a wire transfer.

ACH Debit Questions

Q: Is my bank account information stored in the Customs system?

A: No. For security reasons, Customs does not store bank account information in ACS. Customs keeps only your ACH payer number. The Accounting Services Division and the ACH processor bank have your account information.

Q: I am an importer who uses several brokers. Do I need an ACH payer number for each broker?

A: No. The same payer number can be given to each broker. Each broker's payment will be noted separately on your bank statement. There are no consolidated debits.

Q: Can I use the same ACH payer number for more than one bank account?

A: No. Each bank account must have a unique ACH payer number.

Q: How soon after my ACH payment authorization is accepted will my bank account be debited?

A: Usually the second business day after authorization is accepted.

Q: How will I recognize the ACH debit on my bank statement?

A: The debit amount on your statement will have a U.S. Customs notation. If your bank uses the CCD+ format, your statement will include the Customs statement number.

ACH Credit Questions

Q: How do I notify my financial institution to originate a transmission?

A: The financial industry provides methods for initiating the ACH Credit transaction, including telephone, PC dial-up, and floppy disk options. Your financial institution will help you determine which method is best for you.

Q: How do I determine when to initiate my ACH Credit transaction?

A: You must originate your transaction at least one day prior to the payment due date. You control the settlement date. You must obtain statement number and amount due from your broker/filer. You need to contact your broker/filer and decide how to best be notified of your payment obligations.

Q: Will I be notified that Customs received my payment?

A: The transaction should be listed on the statement that you receive from your financial institution. The final statement, available through the Automated Broker Interface (ABI) on the first business day after the statement is paid, lists all paid entry summaries and serves as payment confirmation for statement payers. For example: Payment date is 5-4-00 broker will receive final statement on 5-5-00 if all information is correct. If an error has occurred on the addendum record and Customs will have to manually apply your payment the broker will receive the final one business day after payment has been applied. For example: Payment date is 5-4-00 an error was on addendum record Customs manually applied payment on 5-5-00 broker will receive final statement on 5-8-00.

Q: How will I be notified if there is a problem?

A: Your financial institution will receive an electronic message if the transmission failed between your bank and Customs bank. If the transmission is successful, no message is returned.

Q: What happens if there is an error on the addendum record?

A: If information sent on the addendum record does not match Customs computer information, you will be notified via fax of the problem and ask to provide additional information to determine correct information so the payment can be applied. Additionally, to ensure that future payments do not result in the same error happening again.

Q: What happens if there is a discrepancy in the payment amount?

A: Customs cannot reverse the transmission. If the payment exceeds the amount due, Customs applies the payment and refunds the excess to your company. Refunds are made through the existing Treasury check disbursement process, not through ACH. If payment is less than the amount due, you will be notified via fax of the amount due and will need to send additional balance through the ACH system. Once additional amount due is received then your statement can be paid. Customs can not partially pay statements. Statement will credited as of the collection date that the complete payment is received.

Q: If I am a current ACH Debit participant, what are my options?

A: Choose the process that best suits the payment type. You can use all available features of both ACH Credit and Debit.

ACH Refund Questions

Q: What if my checks normally go in care of my broker? Can my electronic payment go in care of my broker?

A: No. The electronic payment will go directly to the bank account that was provided to us on the ACH Vendor/Miscellaneous Payment Enrollment Form. If you maintain a CF 4811 on file with Customs, your Courtesy Notice of Liquidation (CF 4333-A) will continue to be mailed to your broker.

Q: What if my Taxpayer Identification Number (TIN) has several suffixes? Will I have to submit an ACH Vendor/Miscellaneous Payment Enrollment Form for each suffix?

A: Yes, if you want your refunds deposited into separate accounts for each Taxpayer Identification Number (TIN) suffix, we will need a separate ACH Vendor/Miscellaneous Payment Enrollment Form for each suffix. If you want all refunds for all IR number suffixes to go to one account, then only submit one ACH Vendor/Miscellaneous Payment Enrollment Form and attach a list of each suffix you want to include for ACH payments.

Q: Can I use my Customs Assigned Number for my Vendor ID?

A: No, we can only accept your Taxpayer Identification Number (TIN) or Social Security Number (SSN) for your Vendor ID.

Q: When will my refund be electronically deposited into my account?

A: The refund will be deposited into your account two business days from the liquidation date. Normally, the liquidation date is Friday (unless Friday is a holiday) so the refund will be deposited into your account on Tuesday.

Q: If I have several refunds due, will I get one lump sum?

A: No you will not receive one lump sum. You will receive a separate transmission for each refund owed. Custom will use the CCD+ (Cash Concentration or Disbursement Plus) ACH format, which contains a single payment and a single addendum record.

Q: How will I know I received my refund payment?

A: The payment information, provided by Customs, includes the routing instructions, the payee identifier and the refund amount. You and your bank should agree how and when the payment information will be provided to your company.

This information is also available via the Internet and e-mail. The system that provides this information is called the Payment Advice Internet Delivery (PAID) system. PAID is available to you at NO cost. The database of payment information resides on the Austin Financial Center web site. You can access your payment information by keying in a USER ID and Password and querying the database by date range, invoice number, and federal agency. Banking information is not a part of PAID.

You will need to register by completing and submitting the registration form on-line. Just access the Austin Financial Center web site at http://fms.treas.gov/paid (note: no "www" in the address), and Register for Paid from the menu. The rest is self-explanatory.

The PAID webmaster will verify your registration and notify you that your access has been activated within 5 business days and confirm your acceptance by e-mail. You can then check on your payments through the Austin Financial Center web site. A specific method of delivery may be chosen by selecting Web access to payment data with or without e-mail notification of new payment data or e-mail delivery of payment data.

A unique name and password, in combination with your Tax Identification Number (without the suffix) and other associated information controls access to this system. Payment information is available to you on the same day the deposit is received by your bank and the information is retained for 60 days.

Q: How will I know what the refund is for?

A: The addenda record will identify the payment. The addenda record, depending upon the type of payment, includes information such as the entry/collection document number, liquidation date, interest amount, and the reason for the refund. You and your bank should agree how and when the addendum information will be provided to your company.

Q: What should I do if my banking information changes after I sign up for this program?

A: Notify us immediately at 317 298-1200 extension 1178. We will send you another ACH Vendor/Miscellaneous Payment Enrollment Form for you and your bank to make the necessary changes. Return the completed form to the address or fax number indicated on the form and we will update your records.

Q: What if I do not notify Customs of banking changes? What happens to my refund?

A: We will make an attempt to contact you when we are notified by our bank that your electronic payment was not received successfully. Please note this may cause a delay of any future refund payments if we cannot reach you timely. If we cannot reach you, your refund payments will revert back to paper checks that will be mailed through the U.S. Postal Service.

Q: Who should I call if I have questions about this program?

A: National Finance Center
Revenue Branch, Billings Section
PO Box 68901
Indianapolis, IN 46268

Phone: (317) 298-1200 x 1178
e-mail: ach-customs@customs.treas.gov