The United States is offering deferred payment of duties, taxes and fees for those importers that can prove “significant financial hardship” due to a government mandate shutting down or restricting their normal operation. The deferred payment applies to entries with an original due date beginning April 21, 2020.
It is important to note that these deferred payments will be due within 90 days of the original due date. No interest will accrue during the 90 day postponement period. The postponed entries will not be subject to penalties or liquidated damages during the postponement period.
Entries With Ordinary Duties
Only entries with ordinary duties qualify for the deferred payment.
Does not apply to any entry subject in whole or in part to:
- AD/CVD duties
- Section 232 - Additional duties on Aluminum and Steel products
- Section 201 - Additional duties (eg: Solar Panels & Large Residential Washing Machines)
- Section 301 duties - Additional duties on certain Merchandise made in China
Entry Filing Timeframe Unchanged
This temporary postponement applies only to the payment of duties, taxes and fees. The timeframe for filing the entry remains the same. It is the responsibility of the importer of record to ensure that the postponed duties taxes and fees are paid timely. CBP will not be responsible for advising the importer of record that there are duties due.
Significant Financial Hardship
An importer is considered to have had significant financial hardship if the operation of such importer was fully or partially suspended during the following time periods: March 13 to March 31, 2020 and/or the month of April 2020. In order to qualify for the benefit of deferred payment the importer must prove that their operations were fully or partially suspended by a competent governmental authority limiting commerce, travel or group meetings due to COVID19 and as a result have gross receipts that are less than 60 percent of the gross receipts for the comparable period in 2019.
How Do I Participate In The Deferral
There is no need to file documentation with CBP to be eligible for the relief offered under this temporary legislation. The importer, however, must maintain documentation as part of its books and records that establishes they qualified for the temporary deferral of duties, taxes and fees. These documents must be readily available should CBP wish to conduct a review of the documentation at a future date to ensure the importer qualified for the deferral of duties.
Payment Of Duties
****VERY IMPORTANT**** It is the responsibility of the importer of record to ensure that the postponed duties taxes and fees are paid timely. Your Customs Broker will not be responsible for payment, nor monitoring of your payments due to CBP. CBP will also not be responsible for advising the importer of record that there are duties due, so you must ensure that you have internal mechanisms in place to track and manage any deferred payments.
Sample Payment Timeframes
Duty & Fee Payments
|Original Duty Due Date
|April 30, 2020
||July 29, 2020
Internal Revenue Taxes
Internal Revenue Taxes paid via deferred tax schedule may be postponed up to three months from the payment due date.
|Original Due Date
|April 29, 2020
||July 29, 2020
|May 14, 2020
||August 14, 2020
Periodic Monthly Statements (PMS)
Entries paid via Periodic Monthly Statement may be postponed up to three months based on the 15th working day of the third month.
|Original Due Date
||Three Month Postponement
|April 21, 2020
||July 22, 2020
|May 21, 2020
||August 21, 2020
Relief Does Not Apply To Other Debts Owed To CBP
This temporary deferral of duties owed does not apply to the deadline for payment of other debts owed to CBP including bills for duties, taxes, fees, and interest determined to be due upon liquidation or reliquidation. It also does not apply to the deadlines for any liquidated damages or penalties issued by CBP.
What Do I Do If I Think I may Qualify?
If you think you qualify and would like information on how to participate please contact Pacific Customs Brokers Inc. Trade Compliance Group.