Trump Allows 90-Day Deferrals of Customs Duty Collections

President Donald Trump authorized the temporary extension of "deadlines, for importers suffering significant financial hardship because of COVID-19" in an April 19 Executive Order. "To qualify for this temporary postponement, an importer must demonstrate a significant financial hardship," CBP said in a prepublication version of a temporary final rule. "An eligible importer need not file additional 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," it said.

CBP also outlined the delay in two CSMS messages. The delayed collection won't apply to antidumping/countervailing duties or Section 301, 232, or 201 trade remedies, CBP said in the first message. "No interest will accrue for the postponed payment of such estimated duties, taxes, and fees during this 90-day postponement period," it said. "No penalty, liquidated damages, or other sanction will be imposed for the postponed payment of the deposit of estimated duties, taxes, and fees in accordance with this temporary postponement."

CBP said in the other CSMS message that "this temporary postponement applies to formal entries of merchandise entered, or withdrawn from warehouse, for consumption (including entries for consumption from a Foreign Trade Zone) in March or April 2020," and that "CBP will not return deposits of estimated duties, taxes, and fees that have already been paid." Any adjustments to the April periodic monthly statement (PMS) to take advantage of the deferral "must be made prior to 11:59PM eastern time on Monday, April 20, 2020," CBP said.