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CBP Duty Deferral Program

Home News CBP Duty Deferral Program
Update: April 22nd – CBP is regularly compiling and posting answers to Frequently Asked Questions regarding this temporary postponement on the CBP.gov COVID-19 Updates and Announcements webpage.

Late in the evening on Sunday, April 19, 2020, there was an executive order signed that U.S. Customs and Border Protection (CBP) will be postponing for 90 days the deadline for payment of certain estimated duties, taxes, and fees for importers experiencing a significant financial hardship due to COVID-19.  The temporary postponement applies to formal entries entered, or withdrawn from warehouse in March 2020 or April 2020.  There will be no return of duties previously paid.

The duty deferral DOES NOT apply to any entry where the summary includes any merchandise subject to the following:

  • Antidumping and/or Countervailing duties
  • Section 232 Duties
  • Section 301 duties
  • Section 201 duties

Significant financial hardship is defined as:

An importer will be considered to have a significant financial hardship if the operation of such importer is 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% of the gross receipts for the comparable period in 2019.

No interest will accrue during the postponement, and no penalty, liquidated damages, or other sanction will occur for the postponement of above referenced duties.

Importers/Filers will be responsible for adjusting the statement dates accordingly.  CBP will not adjust statement dates. Any adjustments to the April PMS must be made prior to 11:59PM eastern time on Monday, April 20, 2020.

Please contact sarah.jeris@farrow.com if you feel your firm qualify for the duty deferral option above.

CBP’s official guidance is referenced below:
https://content.govdelivery.com/accounts/USDHSCBP/bulletins/2875383
https://content.govdelivery.com/accounts/USDHSCBP/bulletins/2874d39
https://www.cbp.gov/document/rulings/temporary-postponement-time-deposit-certain-estimated-duties-taxes-and-fees-during

Source: U.S. Customs and Border Protection 

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