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Why Your Company Should Use Periodic Monthly Statements

Why Your Company Should Use Periodic Monthly Statements

How Sheltered International Makes Filing Duty Payments Easier for Your Business

From saving you time to improving your cash flow, using the Periodic Monthly Statement (PMS) process can offer significant benefits to your business. PMS has no additional cost and allows your business to pay duties monthly in a single payment, instead of for each individual transaction. Combined with our tracking and reporting software SiShips, your business can enjoy simplified reporting and accounting and a greater sense of control when it comes to duty payments.

 

How Do Periodic Monthly Statements Work?

Periodic Monthly Statements track entry activities throughout the month to provide a single monthly statement. This structure also extends the payment window. While when paying per shipment, the importer must pay duties within 10 business days, PMS offers the importer 15 business days after the end of each cycle to pay. For example, the duties on goods imported between July 1 and July 31 will be summed at the end of the month. The monthly payment is then not due until the fifteenth business day of the following month – in this example, August 21.

With this additional time, your business can extend cash flow by up to 54 days. The single payment not only makes it much easier to track your finances, but also offers significantly more control over your working capital.

How Can My Business Use PMS for Duty Payments?

Get started with PMS by filling out an application and sending it Sheltered International to review and submit to Customs. In a few weeks you will receive a Payer Unit Number (PUNS) from Custom’s ACH team. Once received, you must forward your PUNS number to Sheltered to complete the activation.

How Can SiShips Help?

To streamline the process even further, our software SiShips generates a duty summary (7501) for each entry throughout the month for accounting and record-keeping. Once the month has closed, a final statement will be provided to review before Customs pulls the duty on the 15th business day the following month. These reports can all be easily accessed through our software. That’s less time that you have to spend on accounting and more time you can devote to supporting your customers and growing your business.

With greater control over your cash flow and a simplified payment process, it’s clear that PMS can be valuable for you and your business.

To learn more about how Sheltered International can help finesse your freight forwarding experience, contact us today.

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Phase One of US-China Trade Deal Reduces Tariffs

Chinese and American Exports See Decrease in Duty Rates

As part of a Phase One Economic and Trade Agreement between the United States and China, signed on January 15, 2020, both countries have halved tariffs on many imported goods. The relevant duty reductions were applied on February 14, 2020.

China’s reductionsus-china trade deal will affect only the extra tariffs put in place on American imports last September. Tariffs on U.S. crude oil will drop from 5% to 2.5%, while total duties on soybeans are reduced from 30% to 27.5%. In total, this will affect roughly $75 billion of exports from the United States. China’s Ministry of Finance announced the reduction and stated it was designed to “advance the healthy and stable development of China-U.S. trade.”

Similarly, a White House spokesman stated the China trade deal “protects American innovation and creates a level playing field for our great farmers, ranchers, manufacturers, and entrepreneurs.” As of February 14, the U.S. has cut duty rates from 15% to 7.5% for a wide variety of goods, including any imports which fall under List 4A. These Chinese imports account for about $120 billion of goods. For List 4B, planned additional duties of 15% have been suspended. However, an additional $250 billion of goods will retain a 25% tariff, including Lists 1, 2, and 3.

For updated duty rates for all lists, see STR Trade’s compilation.

Effects of the China Trade Deal

International trade relationships with China have also been recently affected by COVID-19, which has shut down factories, seriously reduced the efficiency of ports and delayed supply chains across Asia. Former Macy’s CEO Terry Lundgren has stated that the combined effects of coronavirus and the Chinese trade war have revealed the retail supply chain’s potentially detrimental reliance on China. Similarly, American technology companies including Apple and Google are looking to reduce their reliance on China’s production. Supporters of the administration’s efforts agree that the trade war was a necessary step in forcing a shift away from dependence on Chinese production.

Most business leaders, including executives from Goldman Sachs Group Inc., Intel Corp., and Boeing Co., are in favor of the new trade agreement, though they hope these negotiations will continue.

In contrast, the deal has been criticized as being harmful to privately-owned businesses in China who can’t afford the more expensive American imports, allowing state-owned enterprises more market power. Additionally, as the agreement requires China to purchase $200 billion of American goods within two years, government-subsidized SOEs are likely to increase their share of imports. Critics of the China trade deal say this is counterintuitive to the Trump administration’s focus on reducing SOE’s influence over the economy. Trump trade advisor Peter Navarro has stated that these state-owned enterprises will be the target of “phase two” trade talks.

Stay Up-to-Date with Tariff Changes

SIShips makes it easier to keep track of international trade shifts and how they might affect your shipments.

Learn more about how SIShips can simplify your freight experience.

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