Treasury and CBP Announce Deferment of Duties and Fees for Certain Importers during COVID-19 Response

On April 18, 2020, President Trump signed an Executive Order 18 to provide additional economic support for U.S. businesses, including critical supply chains for U.S. manufacturers, during the COVID-19 pandemic.

The order gives the Administration the flexibility to allow for a 90-day deferment period on certain payments for importers who have faced a significant financial hardship due to the COVID-19 pandemic response.

This temporary postponement applies to formal entries of merchandise entered, or withdrawn from warehouse, for consumption (including entries for consumption from a Foreign Trade Zone) in March 2020 or April 2020. CBP will not return deposits of estimated duties, taxes, and fees that have already been paid.

This temporary postponement does not apply to any entry, or withdrawal from warehouse, for consumption, where the entry summary includes merchandise subject to one or more of the following:

• Antidumping duties,
• Countervailing duties,
• Duties assessed pursuant to Section 232 of the Trade Expansion Act of 1962,
• Duties assessed pursuant to Section 201 of the Trade Act of 1974, and
• Duties assessed pursuant to Section 301 of the Trade Act of 1974.

No interest will accrue for the postponed payment of such estimated duties, taxes, and fees during this 90-day postponement period. 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.

This temporary postponement does not apply to deadlines for the payment of other debts to CBP, including but not limited to deadlines for the payment of bills for duties, taxes, fees, and interest determined to be due upon liquidation or reliquidation, deadlines for the payment of fees authorized pursuant to 19 U.S.C. 58c (except for merchandise processing fees and dutiable mail fees), or deadlines for the payment of any penalty or liquidated damages due to CBP.

Treasury Department and U.S. Customs and Border Protection today are issuing a joint Temporary Final Rule.