U.S. Customs and Border Protection (“CBP”) is exploring temporary measures to offset costs to U.S. businesses during the COVID-19 Pandemic.  While discussions are ongoing, CBP has disclosed specific measures it has or will implement, including (1) granting a 90-day extension for duty payments and (2) extending time frames to present increased bonds where an importer has been issued a bond insufficiency notice.

With respect to delaying duty payments, CBP is examining how to implement such a temporary delay while the obligation to pay duties remains in effect.  CBP is reviewing extraordinary requests on a case-by-case basis for immediate relief.  Companies seeking extraordinary relief within the next few days from customs duties while CBP implements guidance should do the following:

• File a request with CBP via email to otentrysummary@cbp.dhs.gov, with the Company’s Name and Importer of Record number in the subject line of the email and indicate that it is a request for a delay in payment of duties (companies that enter merchandise through Customs brokers should notify their brokers as well).
• CBP will reply with a generic authorization.
• Discuss with your bank requests for payments from CBP’s automated payment system (the Automated Clearinghouse, or “ACH”) to manage payment requests from ACH that would automatically be cleared under regular circumstances.
• Companies availing themselves of the delayed duty payments should expect to receive notices of late payment penalty, but Customs has instructed importers that the generic authorization confirmation-mail to the email request above will serve as an absolute defense for late duty payment while the COVID-19 pandemic remains in effect.

CBP has informally notified importers that it will be issuing a notification of the delay via the Customs messaging system (CSMS) in the coming days, and that the 90-day delay of duty payments would be authorized through a Presidential proclamation, as well as other measures to offset the burden on importers during the COVID-19 pandemic.

Other COVID- 19 Customs Import Considerations

Importers that are experiencing fluctuations in pricing of imported merchandise should consider flagging entries for reconciliation in case adjustments are necessary after imports are entered. In order for such price reductions to be considered in Customs value, importers must agree to the reduction with the exporter prior to exportation.  As such, companies expecting to request price reductions from suppliers should obtain written agreement to such reductions prior to exportation of the goods by the supplier.