90 Day Deferral for Payment of Duties
On Sunday evening, April 19th, in a Presidential Executive Order, President Trump authorized the temporary extension of deadlines for payment of estimated duties, taxes and fees on goods imported in March and April. The Executive Order authorizes the Secretary of Treasury to “temporarily extend deadlines, for importers suffering significant financial hardship due to COVID-19.” Customs and Border Protection (CBP) published a temporary final rule with details regarding eligibility and two CSMS messages with instructions for filing entries and submitting payments (CSMS#42423171 and CSMS#42421561)
This temporary postponement applies to formal entries of merchandise entered, or withdrawn from warehouse, for consumption (including entries for consumption from a Foreign Trade Zone) from March 1, 2020, through April 30, 2020. However, the order does not apply where the entry summary includes merchandise subject to one or more of the following:
- Antidumping duties (ADD) and/or Countervailing duties (CVD)
- Section 232 Duties (Steel/Aluminum) subject to the Trade Expansion Act of 1962,
- Section 201 Duties subject to the Trade Act of 1974, and
- Section 301 Duties (China goods) subject to the Trade Act of 1974.
Where an entry would include eligible and ineligible merchandise, CBP is authorizing the submission of separate entries pursuant to 19 CFR § 141.52. This authorization only applies to entries that have not yet been filed; it does not apply to entries that have already been filed.
To qualify for the postponement of duties, Importers must demonstrate Significant Financial Hardship. Importers must demonstrate that operations were fully or partially suspended during March 2020 or April 2020 due to orders from a competent governmental authority limiting commerce, travel, or group meetings due to COVID-19, and as a result of such suspension, the gross receipts for March 13-31, 2020 or April 2020 are less than 60 percent of the gross receipts for the comparable period in 2019. An eligible importer does not need to file documentation with CBP to be eligible for this relief but must maintain documentation as part of its books and records establishing that it meets the requirements for relief.
Please contact our Customs Brokerage Division if you want to take advantage of deferral of qualifying import duties, taxes and fees.