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Update on 90-Day Duty Deferral
American Shipper
Post Date

U.S. Customs and Border Protection has provided the following additional information in response to questions about its 90-day deferral of certain estimated duties, taxes, and fees.
- the following do not qualify for the deferment: (1) entries in which the broker acts as the importer of record but does not meet the criteria for significant financial hardship, (2) goods that benefit from the retroactive application of trade remedy exclusions after the time of entry, (3) reconciliation entries, and (4) entries subject to an AD or CV duty case with no rate yet established or with a zero rate applicable
- the following do qualify for the deferment: (1) goods excluded from trade remedy duties (provided the exclusion is in effect at the time of entry), and (2) the cotton fee
- if the importer of record is a wholesaler that sells to retailers whose operations are susped due to COVID-19, the wholesaler must meet the significant financial hardship criteria to be eligible for the deferment
- the time of entry, pursuant to 19 CFR 141.68, establishes when an entry for consumption is made, and the deferment only applies to goods entered or withdrawn from warehouse or foreign-trade zone for consumption in March or April
- filers using the deferment should not file any drawback claims, accelerated or non-accelerated, until payments have been properly made on the import entry(ies)
- CBP is adopting the definition of “gross receipts” used at 26 CFR 1.993-6
- a post-summary correction will not be allowed on an entry that has duty deferred until after the duty is paid
- it is up to the customs broker whether or not to secure from the importer documentation confirming that it meets the significant financial hardship criteria
- filers should not cancel entries previously filed to refile new entries to take advantage of the deferment

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