CBP Announces Duty Postponement for Importers Financially Impacted by COVID-19

U.S. Customs and Border Protection (CBP) has announced that it will postpone the deadline for deposit of estimated duties, taxes and fees for 90 days for importers impacted by COVID-19. This temporary rule was announced via a CBP message which can be accessed here. The postponement is available to importers experiencing a significant financial hardship due to COVID-19.

The program will NOT cover entries or withdrawals that include merchandise subject to antidumping duties, countervailing duties and/or Section 201, 232 or 301 (China) tariffs.

An importer will be considered to be experiencing significant financial hardship if its operations were either 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 of such importer for March 13-31, 2020 or April 2020 are less than 60% of the gross receipts for the comparable period in 2019.

Eligible importers will not need to provide proof of eligibility to CBP in order to be eligible for relief but must maintain documentation establishing eligibility as part of its books and records, which CBP can review on a future date for compliance.

This deferral is applicable to formal entries of merchandise entered, or withdrawn from a warehouse, for consumption, including entries for consumption from a Foreign Trade Zone, in March or April 2020. No interest will accrue; nor will a penalty, liquidated damages, or other sanction be imposed for the postponed payment during this 90-day period. Deposits which have already been paid, however, will not be returned.

This temporary postponement does not apply to deadlines for the payment of other debts to CBP, including bills for duties, taxes, fees and interest determined to be due upon liquidation or reliquidation; fees authorized under 19 U.S.C. 58c; or any penalty or liquidated damages claim due to CBP.

Only entries without ineligible merchandise may receive duty postponement. However, CBP is authorizing the submission of two entry filings for a single entry, pursuant to 19 CFR § 141.52, which, for instance, could separately encompass an ineligible good and an eligible good. This authorization only applies to entries that have not yet been filed; it does not apply to entries that have already been filed.

Should you have any questions regarding this measure, or require additional assistance, please contact one of our trade professionals here.