For the past several weeks there have been multiple, on-again, off-again stories in the news about whether or not the White House would provide relief to importers from estimated duties, taxes and fees during the COVID-19 crisis.
Late Sunday – and quite unexpectedly given the last public statements from the Administration – the White House issued an Executive Order providing 90-day duty postponement to importers.
At first blush, this sounds great. But the devil is in the details and in this case, it applies to a select group of entries which meet certain conditions.
- 90-day postponement is not available for entries that include ADD/CVD, Section 201, 232 or 301 trade remedy duties.
- The CSMS message says this relief is for importers suffering “significant financial hardship,” one condition of which is defined as 2020 gross receipts 60% less than the comparable March and April period in 2019. While documentation must not be filed, the agency “may also conduct a review of the documentation at a future date to ensure compliance with the requirements.”
- This deferral applies to entries paid by single check, daily statement or Periodic Monthly Statement.
- Duty already paid cannot be postponed.
- Importers whose entries are paid on period monthly statement have until 11:59 PM ET Monday, April 20th (read: tonight) to have the payment date changed.
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.
- Original Due Date: April 30, 2020; 90-Day Postponement: July 29, 2020
Estimated duties and fees paid via Periodic Monthly Statement (PMS) may be postponed up to three months as defined by the 15th working day of the month.
- Original due date: April 21, 2020; 3 month postponement: July 22, 2020
- Original due date: May 21, 2020; 3 month postponement: August 21, 2020
The deadline to change the Periodic Monthly Statement is Monday, April 20th at 11:59 PM ET. That’s TONIGHT.
If your company is eligible and wishes for us to utilize this postponement, contact your Edward J. Zarach & Associates representative IMMEDIATELY.