Written by Susan Kohn Ross
The official Federal Register notice authorizing the duty payment deferral option has been published – please see here. The comment deadline expires on May 20, 2020.
We noted in our Alert below that CBP stated the decision about whether or not to defer payment of duty had to be made by 11:59 PM today. CBP has now clarified that is 11:59 PM Eastern Time, and the deadline refers to the April Periodic Monthly Statement.
Also, CBP is now saying if the 301 duty exclusion covers the entire entry, the entry is eligible for the duty payment deferral option.
Despite statements discounting the possibility, saner heads have prevailed and published late yesterday was an Executive Order issued permitting the Secretary of the Treasury to adjust the deadlines related to payment of duty. Executive Order re Duty Payment Deferral. On that basis, CBP announced a 90 day postponement of duty payment is possible. First, in CSMS 42423171, CBP made clear the option to postpone duty payment for 90 days exists for many entries filed in March and April 2020. However, if the entry involves antidumping duty, countervailing duty, and/or Section 201, 232 or 301 duties, duty payment deferral is not available. While not obvious from the publications available to date, if your goods are subject to a 301 tariff but you have an exclusion, CBP has verbally advised you are not eligible for duty payment deferral. Many more questions are likely and CBP is holding a second briefing with the trade community this morning. The first such briefing took place yesterday evening. During that briefing, CBP indicated the duty deferral decision had to be made before 11:59 p.m. tonight. This is understood to refer to duty payments due today, April 20, 2020. Make sure to consult with your customs broker, but do not be surprised if many are unsure about the application of this newly announced program, due to the timing of its rollout. Continue reading “CBP Authorizes Duty Payment Deferral”