COVID-19 90-Day Duty Postponement Frequently Asked Questions

No.  The determination of who qualifies for the 90-day postponement is based on the party identified as the IOR on the entry.  IORs who meet the criteria identified for significant financial hardship due to COVID-19, as outlined in the Temporary Final Rule and  CSMS 42423171, and whose entries do not include AD/CVD or Trade Remedy duties, are eligible for the 90-day postponed payment.  A broker acting as the IOR must meet the criteria for significant financial hardship in order to postpone payments under 19 C.F.R. § 24.1a.     

Entries imported by an IOR that meets the significant financial hardship criteria and do not include AD, CVD or Trade Remedy duties are eligible for the 90-day postponement and may be removed from the broker statement.

Merchandise granted an exclusion from Trade Remedy duties qualifies for the 90-day postponed payment.  The exclusion must be in effect at the time of entry.  Merchandise that benefits from the retroactive application of exclusions after the time of entry are not eligible for the 90-day duty postponement.  Entries with any merchandise subject to AD/CVD, Section 201, 232 or 301 Trade Remedy duties are not eligible for the 90-day postponement. 

The wholesaler IOR must meet the significant financial hardship criteria in order to be eligible for the 90-day postponement.  It is the IOR’s responsibility to substantiate its own significant financial hardship.

As a general rule, CBP offices will exercise discretion and flexibility in working with importers in light of the COVID-19 impacts.  This temporary postponement applies to formal entries of merchandise entered, or withdrawn from warehouse, for consumption (including entries for consumption from a Foreign Trade Zone) in March or April 2020 where estimated duties, taxes, and fees have not been paid.  Entries in this scope that have not been paid due to significant financial hardship will qualify for the 90-day postponement, if they satisfy all other requirements.  Entries for which a payment was made but had insufficient funds are not eligible for the 90-day postponement.    

The temporary postponement applies to merchandise entered, or withdrawn from warehouse or foreign trade zone, for consumption in March or April 2020.  The time of entry, pursuant to 19 C.F.R. § 141.68, establishes when an entry for consumption is made.

Yes, in the situation in which an entry was removed from a PMS and designated as a single pay, the broker can designated it for a future statement, assuming all eligibility criteria are met.

No, a drawback claim should not be filed.  Drawback claims may be liquidated only after estimated duties are deposited with CBP in accordance with 19 C.F.R. § 190.81(a)(2) and (b).  CBP is advising that filers delaying duty payment during the 90 day postponement period due to financial hardships, should not file any drawback claims; accelerated or non-accelerated, until payments have been properly made on the import entry(s), this includes.  Drawback claims may be filed up to 5 years after the date of importation of the merchandise that is identified or designated as the basis for the drawback claim.

Yes, the 90-day postponement applies to the Cotton Fee.

CBP is adopting the definition of “gross receipts” used at 26 CFR 1.993-6.

Correct.  A PSC cannot be filed on an entry summary until it is paid.

No.  The 90-day 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.

An importer who meets the significant financial hardship criteria 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.  It is up to the broker if they choose to secure documentation from the importer confirming hardship.

The submission of separate entries to segregate eligible merchandise from ineligible merchandise applies to entries that have not yet been filed.  Filers should not cancel entries previously filed in order to refile new entries in order to take advantage of the 90-day postponement.

Entries that are subject to an AD/CVD case with no rate yet established, or with a zero rate applicable, are not eligible for the 90-day postponement. 

Yes, the 90-day duty postponement applies to federal excise taxes on imported products.

Yes, a valid continuous or single transaction bond is required to be on file at time of entry filing. The current bond formulas apply.

Yes

Yes, since China Section 301, List 4B, was not implemented, Chinese products that were included on List 4B are eligible for the 90-day postponement.

No. Products subject to China Section 301, List 3, are NOT eligible for the 90-day postponement.

To qualify for the postponement, an importer’s operations must be fully or partially suspended during March or April 2020 due to orders from a competent governmental authority limiting commerce, travel, or group meetings because of COVID-19.  Importers whose operations have been deemed “essential” will be considered by CBP on a case-by-case basis, and should be submitted to OTEntrySummary@cbp.dhs.gov for review.

ACE will not liquidate entries for which payment has not been received due to the 90-day postponement period.  After the 90-day postponement period, any entry not paid will be liquidated and a bill will be issued.

Yes.

An importer cannot change payment dates in ACE unless they are a self-filer that can submit their own Automated Broker Interface (ABI) transactions.

The importer of record must meet the significant financial hardship criteria in order to be eligible for the 90-day postponement. The importer of record 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.

In order to take advantage of the 90-day postponement period, importers/filers must ensure their entries do not include merchandise that is ineligible for the postponed payment. CBP is authorizing the submission of separate entries pursuant to 19 CFR § 141.52.  This authorization only applies to entries that have not yet been filed; it does not apply to entries that have already been filed. Two separate FTZ weekly entries may be filed to separate eligible goods from non-eligible goods.

Yes, the 90-day postponement applies to the Haas Avocado and Mango Promotional Board Fees.

Yes. In order to take advantage of the 90-day postponement period, importers/filers must ensure their entries do not include merchandise that is ineligible for the postponed payment. CBP is authorizing the submission of separate entries pursuant to 19 CFR § 141.52. This authorization only applies to entries that have not yet been filed; it does not apply to entries that have already been filed. 

No. Approval from CBP is not required for an importer of record to take advantage of the 90-day postponement for payment of estimated duties, taxes and fees. Any importer of record that meets the significant financial hardship requirements is eligible for postponement.  An eligible importer need not file additional 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.

Yes, the 90-day postponement applies to the estimated Pork Fee paid on entries of pork and pork products.

The example and reference to estimated internal revenue taxes paid via the deferred tax schedule in CSMS 42323171 is in reference to the CBP deferred excise tax program referenced in 19 CFR § 24.4. If an importer is approved for the program, it allows for the deferred payment of estimated excise taxes on imported beer, wine, and distilled spirits to U.S. Customs and Border Protection on a bi-weekly basis. Deferred payments of estimated excise taxes for those importers of record already approved for the program were originally due April 29, 2020 and May 14, 2020 and are now postponed to July 29, 2020 and August 14, 2020. If the importer of record is not currently part of the deferred excise tax program referenced in 19 CFR § 24.4, estimated internal revenue taxes paid for beer, wine, distilled spirits, as well as tobacco products on single pay basis or Daily Statement may be postponed up to 90 days from the payment due date.

Tags: 

Source URL: https://www.cbp.gov/trade/basic-import-export/frequently-asked-questions-90-day-postponement