Customs Issues: New Policies for Accepting Checks as Payment of Duties, Fees or other Tenders.

Issue 10, April 10, 2008

CBP will soon be implementing the Financial Management Service (FMS) Paper Check Conversion Over the Counter (PCC OTC) program at depositing port locations.  With this program all checks will be scanned by Customs to create legally acceptable substitute checks for electronic deposit rather than Customs handling paper checks.

As a result of this change Customs now requires that any company presenting a check for duties, fees, or as a tender will be required include the company tax identification number on the face of all business checks. This requirement is to insure that the tax identification number is recorded when the face of the check is scanned.

For personal checks over $25 the payor’s name, home and business telephone numbers and date of birth must be recorded on the face of the check.  In addition the social security number or a current passport number or current driver’s license number (including issuing state) will be required on the face of the check.  Identification is required for all checks.  A personal check tendered shall be accepted only when drawn for the exact amount of the duties, taxes, fees or other charges to be paid.

The regulation requires that if an importer, who has paid duties or other obligation by check, has more that one check returned as being dishonored by the financial institution Customs shall require a certified check, money order or cash from the importer or interested party for each subsequent payment.  This requirement will stay in place until the Port Director is satisfied that the debtor has the ability to consistently present uncertified checks that will be honored by the payor’s financial institution.

Enforcement of these policies will be mandatory and failure to provide the necessary information will result in Customs not accepting the check.

For more information contact Karl Krueger, DHL Regulatory Compliance at karl.krueger@dhl.com.

Sincerely,

Karl F. Krueger
Regulatory Compliance Consultant
Licensed Customs Broker
NCBFAA Certified Customs Specialist