CBP Announces 90 Days Duty Deferral

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CBP Announces 90 Days Duty Deferral

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20-Apr-20

CBP Announces 90 Days Duty Deferral

To assist importers suffering significant hardship from the effects of COVID-19 government imposed restrictions, Customs and Border Protection is granting 90 day deferrals of duty payments in certain cases. The time frame for filing entry summaries does not change.

CBP made this announcement yesterday and the policy is effective as of today. This relaxation of duty payment requirements is targeted only to those importers meeting the "hardship" criteria and has some important limitations. This temporary postponement does NOT apply to entry summaries that include one or more of the following:

--- Anti-dumping duty --- Countervailing duty --- Duties due under Section 232 of the Trade Expansion Act --- Duties due under Section 301 of the Trade Act (e.g. most China goods, some from EU) --- Duties due under Section 201 of the Trade Act

New Shipments/Entries containing merchandise excluded from the deferral program can be split into two entries to allow importers to take maximum advantage of the program. This program also includes deferral of Internal Revenue excise taxes for qualifying imports where IRS tax is due.

No interest will be accrued on deferred duties and the deferral does not apply to newly liquidated entries or other funds due CBP for penalties, interest, etc.

Significant Financial Hardship applies to importers who can meet the following criteria:

  1. Business operations have been partially or fully suspended by government imposed restrictions from March 20, 2020 to April 30, 2020.

AND

  1. Gross receipts are down 60% or more from March 20, 2019 to April 30, 2019.

Documentation of the criteria does not have to be submitted at the time of entry but importers must maintain supporting documentation for possible CBP review later.

CBP will not adjust statement payment dates. John S. Connor will gladly make these adjustments for importers who qualify if so instructed. It is important to note that any adjustments to the April PMS must be made prior to 11:59 PM eastern time on Monday April 20, 2020. Please contact our Compliance team, [compliance@jsconnor.com] to discuss further and to confirm your interest in participating.