On April 20, 2020, the Secretary of the Treasury and U.S. Customs and Border Protection (CBP) announced via the CBP Customs Service Messaging System (CSMS #4243171) that they would be postponing the deadline for payment for the deposit of certain estimated duties, taxes, and fees for importers who have experienced a “significant financial hardship” due to the ongoing coronavirus disease (COVID-19) for up to 90 calendar days. This temporary postponement applies to formal entries of merchandise entered, or withdrawn from warehouse, for consumption (including entries for consumption from a Foreign Trade Zone) in March 2020 or April 2020.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 released an additional announcement (CSMS # 4243171) that formally outlined payment instructions for entries that qualify for this postponement period. Customs has also established a COVID-19 website page with FAQ’s concerning the 90-day postponement and procedures.

A “significant financial hardship” for purposes of the 90-day postponement requires that the importer’s operations be fully or partially suspended during March 2020 or April 2020 due to orders from a competent governmental authority limiting commerce, travel, or group meetings due to COVID-19, and as a result of such suspension, the gross receipts of such importer for March 13-31, 2020 or April 2020 are less than 60 percent of the gross receipts for the comparable period in 2019.

Importers do not need to file documentation with CBP to be eligible for this relief but must maintain appropriate documentation as part of their books and records. Also, CBP has been clear that it may conduct a review of such documentation at a future date.

According to CBP, the temporary postponement does not apply to any entries or withdrawals from the 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.

As an example, if an entry contains goods subject to antidumping duties and other goods not subject to antidumping duties, then the entire entry will be precluded from the 90-day postponement. However, CBP has also indicated that they will be allowing importers to utilize procedures enabling them to split goods in a consolidated shipment and enter the various goods separately.

Estimated duties, taxes, and fees paid on single pay basis or Daily Statement may be postponed up to 90 days from the payment due date. Listed below are examples of the type of time frame companies will experience during this postponement:

Example:

Estimated Internal Revenue Tax paid via the deferred tax schedule may be postponed up to three months from the payment due date.

Example:

Estimated duties and fees paid via Periodic Monthly Statement (PMS) may be postponed up to three months, as defined by the 15^th working day of the third month.

Example: