CBP reminder of approaching end of postponed deadlines for customs duties, fees (COVID-19)
CBP reminder of approaching end of postponed deadlines
U.S. Customs and Border Protection (CBP) today issued a release as a reminder of approaching end of the extended 90-day postponement for estimated customs duties, taxes, and fees—deadlines that were postponed as relief in response to the coronavirus (COVID-19) pandemic.
Read CSMS #42234033 (July 10 2020)
U.S. Customs and Border Protection (CBP) and the Treasury Department in April 2020 postponed for 90 calendar days, the deadline for payment for the deposit of certain estimated duties, taxes, and fees for importers experiencing a significant financial hardship due to the COVID-19 pandemic. This temporary postponement applied to formal entries of merchandise entered, or withdrawn from warehouse, for consumption (including entries for consumption from a Foreign Trade Zone) in March and April 2020.
- No interest will accrue for the postponed deposit of such estimated duties, taxes, and fees during this 90-day postponement period.
- Deposits made after the new due date may be subject to interest.
- No penalty, liquidated damages or other sanction will be imposed for the postponed deposit of estimated duties, taxes, and fees in accordance with this temporary postponement, if paid by the new due dates.
To determine the amount of estimated duties, taxes, and fees owed, the date used for calculation remains the date that would have otherwise applied in the absence of the 90-day postponement period.
The temporary postponement did not apply to any informal entry, or any formal entry, or withdrawal from warehouse, for consumption, where the entry summary included merchandise subject to one or more of the following:
- Antidumping duties (AD)
- Countervailing duties (CVD)
- Duties assessed pursuant to Section 232 of the Trade Expansion Act of 1962
- Duties assessed pursuant to Section 201 of the Trade Act of 1974
- Duties assessed pursuant to Section 301 of the Trade Act of 1974
Importers that did not make timely payment of entries that were excluded from the temporary postponement will be subject to liquidated damages with interest.
Certain estimated duties, taxes, and fees paid on single pay basis or daily statement may have been postponed up to 90 days from the payment due date.
Example
Original Due Date |
90-day postponement |
April 30, 2020 |
July 29, 2020 |
Estimated tax paid via the deferred excise tax program (that allows for deferred payment of estimated excise taxes on imported beer, wine, and distilled spirits to CBP on a bi-weekly basis) may have been postponed up to three months from the payment due date.
Example
Original due date |
Three-month postponement |
April 29, 2020 |
July 29, 2020 |
May 14, 2020 |
August 14, 2020 |
Certain estimated duties and fees paid via periodic monthly statement may have been postponed up to three months, as defined by the 15th working day of the third month.
Example
Original due date |
Three-month postponement |
April 21, 2020 |
July 22, 2020 |
May 21, 2020 |
August 21, 2020 |
If an entry summary is removed from a periodic monthly statement and placed on a daily statement, the payment due date will be calculated from the date the daily statement payment would have been due.
Example
- Date of entry: April 2, 2020
- Date of entry summary: April 16, 2020
- Original Due Date on scheduled periodic monthly statement: May 21, 2020
- Three-month postponement: August 21, 2020
- Removed from August 2020 periodic monthly statement and placed on daily statement
- Payment due date, pursuant to 90-day postponement: July 16, 2020
For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:
Doug Zuvich |
John L. McLoughlin |
Andy Siciliano |
Steve Brotherton |
Luis (Lou) Abad |
Irina Vaysfeld |
Amie Ahanchian |
Christopher Young |
Gisele Belotto |
George Zaharatos |
Andy Doornaert |
Jessica Libby |
The KPMG logo and name are trademarks of KPMG International. KPMG International is a Swiss cooperative that serves as a coordinating entity for a network of independent member firms. KPMG International provides no audit or other client services. Such services are provided solely by member firms in their respective geographic areas. KPMG International and its member firms are legally distinct and separate entities. They are not and nothing contained herein shall be construed to place these entities in the relationship of parents, subsidiaries, agents, partners, or joint venturers. No member firm has any authority (actual, apparent, implied or otherwise) to obligate or bind KPMG International or any member firm in any manner whatsoever. The information contained in herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.
