Secretary of the Treasury and U.S. Customs and Border Protection (CBP) announced a postponement of deadlines for payment of duties and taxes for 90 calendar days. This is really aimed at companies experiencing a significant financial hardship due to the coronavirus disease (COVID-19), and can show a 40 percent drop in gross receipts in March 13-31, 2020 or April 2020 over the same period last year due to COVID-19, and show a business closure or partial closure. The deferment has conditions, the entries cannot be subject to trade remedies such as anti dumping or countervailing duties, nor be subject to Section 232, 201, nor 301. Sec 232 quota is not eligible. Exclusions to Sec 301 duties are eligible only if the whole entry is excluded. While the public comments are detailed, the trade is still in a dialogue with CBP over some of the operational questions around how it will work. So far, it looks like This could help mitigate some liquidity challenges for apparel importers who have Chinese goods not subject to 301 duties, or that are manufacturing in other Pacific Rim countries on which 301 duties would not apply.
Any further clarification of the importer eligibility?
SIGNIFICANT FINANCIAL HARDSHIP – Importers must show financial hardship and 40 percent drop in gross receipts from last year, and any material support they can produce.
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 percent of the gross receipts for the comparable period in 2019.
An eligible importer does not need to file documentation with CBP to be eligible for this relief but must maintain documentation as part of its books and records establishing that it meets the requirements for relief. CBP may also conduct a review of the documentation at a future date to ensure compliance with the requirements.
Please see Cargo Systems Messaging Service (CSMS) messages below:
DUTY POSTPONEMENT ANNOUNCEMENT:
PAYMENT INSTRUCTIONS FOR POSTPONEMENT:
If you believe you qualify based on above, please email us by 3.30 PM EST at DutyDefer@albawheelsup.com so we can attempt to defer the duty within the time restraints.
- Posted by Joe DeSilvetri
- On April 20, 2020
- 0 Comments