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Quarterly Interest Rates Increased for Customs Duties Underpayments and Refunds

CBP published the quarterly Internal Revenue Service interest rates used to calculate interest on overdue accounts (underpayments) and refunds (overpayments) of customs duties, increasing interest rates by one percentage point from the previous quarter. For the quarter that began April 1 and ends June 30, 2018, the interest rates for overpayments will be 4 percent for corporations and 5 percent for non-corporations, and the rate for underpayments will be 5 percent for both corporations and non-corporations. These interest rates are subject to change for the calendar quarter beginning July 1 and ending Sept. 30, 2018, CBP said.

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This is a change from recent years, during which the interest rates for overpayments was 3 percent for corporations and 4 percent for non-corporations, and the rate for underpayments was 4 percent for both corporations and non-corporations. The last change to CBP interest rates came in May of 2016. The rates are based on the federal short-term rate, which has gone from 1 percent to 2 percent.

(Federal Register 05/02/18)