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COVID-19: 90 Day Postponement Frequently Asked Questions
FAQs
Do entries in which the broker acts as the Importer of Record (IOR) qualify for the 90 day postponed payment if the broker does not qualify for the significant financial hardship?
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.
Do entries imported by an IOR that meets the significant financial hardship criteria outlined in the Temporary Final Rule and paid on a broker monthly or daily statement qualify for the 90-day postponement?
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.
Does an entry that has merchandise that was granted an exclusion from a Trade Remedy qualify for the 90-day postponement?
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.
If the IOR is a wholesaler who sells to retailers whose operations are suspended due to COVID19, will the IOR’s entries be 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.
Are entries filed in March that were scheduled for daily statement but not paid eligible for the 90-day postponement?
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.
Can CBP confirm what the term ‘made’ covers?
The TFR reads (page 10, under the new wording in §24.1a(a)(1)) “This temporary postponement applies only to entries, or withdrawals from warehouse, for consumption, made on or after March 1, 2020…” (emphasis added).
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.
In the below scenario, can the broker put an entry BACK on a monthly statement subject to the 90-day postponement?
An entry covered on the Periodic Monthly Statement (PMS) that printed on 4/15/2020 and due to be withdrawn on 4/21/2020, the broker removed the entry from the PMS and changed it to a Pay Type 1 (single pay) over the last few days.
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.
If payment of the estimated duties is deferred, can you still claim drawback against the entry summary during that deferral period? Does ACE prevent you from doing so or must you know not to make the claim?
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.
Does the 90 day postponement apply to the Cotton Fee assessed on all imports of cotton and cotton products?
Yes, the 90-day postponement applies to the Cotton Fee.
What is meant by “gross receipts” as part of the significant hardship criteria?
CBP is adopting the definition of “gross receipts” used at 26 CFR 1.993-6.
One criteria for allowing a Post Summary Correction (PSC) is that it is “fully paid.” Does this mean that a PSC would not be allowed on an entry that has duty postponed until after the duty is paid 90 days later?
Correct. A PSC cannot be filed on an entry summary until it is paid.
CSMS 42423171 section ENTRIES NOT ELIGIBLE FOR THE 90-DAY POSTPONEMENT states, “This authorization only applies to entries that have not yet been filed; it does not apply to entries that have already been filed.” Please explain.
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.
Are Reconciliation entries (Entry type 09) eligible for the 90-day postponement?
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.
With respect to entries with merchandise subject to AD/CVD, is merchandise considered to be “subject” if no AD duty is assessed? Similarly, if there is an AD/CVD case established but a zero rate applies, do these goods fall under the term “subject?”
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.
With respect to entries with merchandise subject to AD/CVD, is merchandise considered to be “subject” if no AD duty is assessed? Similarly, if there is an AD/CVD case established but a zero rate applies, do these goods fall under the term “subject?”
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.
Does the broker need to have something in writing from the importer to confirm hardship?
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.