CBP Amends Collections Procedures for Bounced Checks, Paving Way to Automate in ACE
CBP is amending its regulations on collections to bring its procedures for bounced checks and automated clearinghouse payments in line with the rest of its collections procedures, in a change the agency says will streamline processes for itself and the trade community, and pave the way for the final deployment of collections in ACE.
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The interim final rule takes effect Nov. 4, which is also when CBP is slated to deploy collections release 7 in ACE. Among other changes, CBP will no longer collect interest on the debit voucher bills it sends after bounced checks and ACH payments between the date of the debit voucher and the date of payment or the bill date. If the payment is made in the initial 15-day period after the debit voucher is issued, no interest will be due, CBP said. Comments are due Dec. 22.
The change is required to fully automate collections in ACE, CBP said. “Because of the structure of CBP’s electronic systems, processing of debit vouchers can only be automated if CBP eliminates the requirement to assess interest between the date of the debit voucher to either the date of the payment or the date of the issuance of the bill,” it said.
It will also “bring about major efficiency gains for CBP, significantly decreasing manual processing of debit vouchers, and thereby improving revenue-collecting operations and better utilizing resources currently spent on manual processing,” the agency said.
The trade community will “benefit from improved visibility into specific debit voucher debts as CBP will no longer mail multiple bills (in the form of a letter) for the amount of the debit voucher and interest,” CBP said. And the change also will eliminate confusion where the importer pays the duties after being notified by their bank of the bounced transaction, but CBP still generates a bill after payment is made, the agency said.