Accelerated Payment

Accelerated Payment (AP) can refer to several financial mechanisms that allow a business or other party to receive payments faster than under traditional payment terms. Accelerated payments are typically facilitated by a third-party company that pays the business a discounted amount in exchange for the exclusive right to collect the full amount later on the original terms.

In the context of duty drawback claims, an accelerated payment enables a business to receive refunds on eligible import duties and fees before a claim is finalized. In these scenarios, a company providing professional duty drawback services will make an accelerated payment to a business that has imported goods and later filed duty drawback claims on eligible goods.

About Accelerated Payments in Duty Drawback Claims

If the duty drawback service provider determines that a claim is eligible for an accelerated payment, the business that made the claim (the claimant) will typically receive payment much faster than the average time it takes for duty drawback claims to clear. This can mean the claimant gets the accelerated payment in a matter of weeks, rather than potentially a year or more of waiting for the duty drawback process to complete.

However, it’s important to note that not all duty drawback claims will be eligible for accelerated payments. There are also the fees and discounts associated with accelerated payments to consider.