March 27, 2020 – On March 24, 2020, U.S. Customs and Border Protection (CBP) issued cargo system message service (CSMS) 42097586 advising they would approve, on a case by case basis, additional days for the payment of estimated duties, taxes, and fees, due to the COVID-19 national emergency. Two days later, on March 26, 2020, CBP notified the trade community that CBP is no longer accepting requests for additional days for payment, CSMS 42161666. CBP did say they retain the right to allow additional days for narrow circumstances, including a physical inability to file entry or payments, due to technology outages or port closures.
If any importers obtained permission from CBP and did not pay CBP for estimated duties, taxes and fees due 3/20/2020 through 3/26/2020, payment should be initiated via FedWire or ACH credit by 3/27/2020. FedWire instructions are available here. Importers should work with their financial institution to send ACH credit.
CSMS 42161666 states “Although the temporary option was provided to extend payment due dates, if the money was withdrawn from the account, these funds are legally owed to CBP and a refund will not be issued. Trade users need to work with their financial institutions to ensure that future ACH debit and ACH credit payments to CBP are processed appropriately.”
CBP advises they are continuing to work with federal and private sector partners to identify appropriate mechanisms to manage the operational impacts of COVID-19, and that the trade community should monitor CSMS for additional changes related to COVID-19.
Livingston is pursuing further clarity on this decision and will continue to work with the Administration, Congress and other trade associations to extend duty payment.
If you have any questions regarding CBP guidance in delaying the payment of customs duties at entry summary, Livingston can help! Please contact either your Livingston account manager or our regulatory affairs department at usregaffairs@livingstonintl.com