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United States: Relief relating to deposits of estimated customs duties, taxes, fees (COVID-19)

Relief relating to deposits of estimated customs duties

U.S. Customs and Border Protection (CBP) and the U.S. Treasury Department today jointly released for publication in the Federal Register a temporary final rule that temporarily extends—for 90 days—deadlines for remitting certain estimated customs duties, taxes, and fees as relief measures in response to the coronavirus (COVID-19) pandemic.

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Read the temporary final rule [PDF 293 KB]

The measures temporarily postpone the deadline for importers of record with a significant financial hardship to deposit certain estimated duties, taxes, and fees that they would ordinarily be obligated to pay as of the date of entry (or the date of “withdrawal from warehouse”) for merchandise entered in March or April 2020. The extension is for a period of 90 days from the date that the deposit would otherwise have been due.

This temporary postponement does not permit the return of any deposits of estimated duties, taxes, and/or fees that have been paid. This temporary postponement also does not apply to entries, or withdrawals from warehouse, subject to certain “specified trade remedies” and any entry summary that includes merchandise subject to those trade remedies is not eligible under this rule.

To qualify for this temporary postponement, an importer must demonstrate a “significant financial hardship.” An eligible importer’s operation 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, 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. An eligible importer does not need to 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.

This temporary postponement does not apply to deadlines for the payment of other debts to CBP—such as deadlines for the payment of bills for duties, taxes, fees, and interest determined to be due upon liquidation or reliquidation; deadlines for the payment of fees authorized pursuant to 19 U.S.C. 58c (except for merchandise processing fees and dutiable mail fees); or deadlines for the payment of any penalty or liquidated damages due to CBP.

The effective date of this temporary final rule is April 20, 2020. The due date for comments is May 20, 2020.

 

For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich
Partner and Global Practice Leader
T: 312-665-1022
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
T: 267-256-2614
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
T: 631-425-6057
E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
T: 415-963-7861
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
T: 212-954-3094
E: labad@kpmg.com

Irina Vaysfeld
Principal
T: 212-872-2973
E: ivaysfeld@kpmg.com

Amie Ahanchian
Principal
T: 202-533-3247
E: aahanchian@kpmg.com

Christopher Young
Principal
T: 312-665-3229
E: christopheryoung@kpmg.com

Gisele Belotto
Managing Director
T: 305-913-2779
E: gbelotto@kpmg.com

George Zaharatos
Principal
T: 404-222-3292
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
T: 313-230-3080
E: adoornaert@kpmg.com

Jessica Libby
Managing Director
T: 612-305-5533
E: jlibby@kpmg.com

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