Importers still have an opportunity to defer duty payments for shipments released in April and paid on a monthly statement in May. There is also still time for those shipments released in April that have not yet been paid on a daily statement.
The duty deferral does NOT apply to the following situations:
Entries subject to 301 duties (e.g., China and European Union)
Entries subject to Section 232 duties (e.g., steel and aluminum)
Entries subject to 201 duties (e.g., washing machines, washing machine parts, and solar panels)
Entries with antidumping and/or countervailing duties
Entries where duties have already been paid
Payment of bills for duties, taxes, fees, and interest determined to be due upon liquidation or reliquidation
Payment of any penalty or liquidated damages due to Customs
Payment of fees authorized pursuant to 19 USC 59c (except for merchandise processing fees and dutiable mail fees)
Importers must be able to demonstrate financial hardship in order to take the duty deferral. The importer’s operation must be fully or partially suspended during March or April 2020 due to orders surrounding Covid-19. As a result of such suspension, the gross receipts of the importer for March 13-31, 2020, or April 2020 must be less than 60 percent of the gross receipts for the comparable period in 2019.
US Customs has issued two messages with further guidance – CSMS 42423171 and CSMS 42421561. Customs has also posted FAQs on their website.
Please contact us if you have any questions or wish to inquire about deferring your duties.