Please be advised of a recent joint announcement from Department of the Treasury/U.S. Customs and Border Protection regarding a Temporary Final Rule (the “Rule”) suspending the deposit of certain estimated import duties (tariffs) for 90 days on goods entered for consumption in the U.S. in March and April. The announcement was part of the Administration’s overall COVID relief effort. Unfortunately, the headline is that this relief will not apply to Section 301 “China tariffs” or most of the other tariffs associated with the Administration’s “trade war,” as many had hoped.

The Mechanics

The Rule postpones for 90 days the deadline for Importers of Record with a provable, “significant financial hardship” to deposit estimated duties, taxes and fees that Importers would ordinarily be obligated to pay as of the date of entry, or withdrawal for consumption into the US customs territory, of imported goods. The Rule covers merchandise entered in March or April, 2020. The postponement is permitted for up to 90 days from the date that the deposit would otherwise have been due. The Rule does not permit the return of any deposits of estimated duties, taxes and/or fees that have already been paid. No interest will accrue during the 90 day postponement period. Normal processes for public comment and delays in effectiveness were suspended and so the Rule is effective upon publication.

As noted, the Rule does not apply to Section 301 duties imposed on China-origin goods as a result of the Administration’s “trade war.” It also does not grant relief for duties imposed under Section 201 of the Trade Act of 1974 (for solar cells/panels and washing machines/parts) or Section 232 of the Trade Expansion Act of 1962 (certain steel and aluminum products). Nor does the Rule apply to antidumping and countervailing duties assessed pursuant to 19 USC 1671, et seq.

In order to qualify for the postponement, the Importer must demonstrate a significant final hardship, defined to include the following elements:

(1) the Importer’s operation must have been fully or partially suspended during March or April, 2020 due to Order(s) from a competent governmental authority because of COVID-19; (2) as a result, gross receipts of the Importer between March 13-31, 2020, or for the month of April 2020, were less than 60% of gross receipts for the comparable period in 2019.

The temporary postponement does not apply to the payment of other obligations to CBP, including but not limited to payment of duties due upon liquidation, penalties or liquidated damages.