New Articles

Customs Changes Course: No Longer Accepting Requests to Defer Duty Payments

customs

Customs Changes Course: No Longer Accepting Requests to Defer Duty Payments

On Friday, March 20, 2020, Customs announced that it was accepting requests for short-term relief from payment of estimated duties, taxes and fees due to the COVID-19 emergency, as discussed here.

Nevertheless, on March 26, 2020, Customs issued “Additional Guidance for Entry Summary Payments Impacted by COVID-19” that revised the information and policy in the earlier announcement. In its “Additional Guidance” Customs stated that it was no longer accepting requests for additional days for payment of estimated duties, taxes, and fees, but commented that CBP retains the right to allow additional days for payment in narrow circumstances, such as physical inability to file entry or payments, based on technology outages or port closures.

Single payments, daily and periodic monthly statement payments of estimated duties, taxes and fees that should have been tendered from 3/20/2020 through 3/26/2020, payment must be initiated by 3/27/2020. Trade members who did not pay Customs for estimated duties, taxes and fees from 3/20/2020 through 3/26/2020 must initiate payment by 3/27/2020.

Separate from reversing its policy on a limited number of “additional days” for duty relief, we also reported that CBP was considering a more extended 90-day tariff relief plan. Recent reporting, though, indicates that this 90-day tariff relief plan has been shelved. We understand that a number of senior administration officials (including Treasury Secretary Mnuchin and economic adviser Larry Kudlow) were in favor of granting the relief, but were outweighed by others within the Administration (Peter Navarro) as well as influential individuals in the private sector aligned with more protectionist policies.

______________________________________________________________

Robert Stang is a Washington, D.C.-based partner with the law firm Husch Blackwell LLP. He leads the firm’s Customs group.

 Julia Banegas is an attorney in Husch Blackwell LLP’s Washington, D.C. office.

USITC to Probe Changes in Indian Trade Policies

Washington, DC – The US International Trade Commission (ITC) has launched an investigation into significant changes in India’s trade and investment policies by that country’s newly-elected government.

The decision by the agency comes in response to a request made in a September 25 letter sent jointly from the House Ways and Means Committee and the Senate Committee on Finance.

“Given the recent national elections in India and the formation of a new Bharatiya Janata Party-led government, and our interest in receiving the most comprehensive and up-to-date information possible,” the letter read, “we now request that the Commission conduct a second investigation concerning India’s industrial policies that discriminate against US trade and investment since the first ITC investigation.”

As requested, the ITC said it will “provide information about any significant changes by the new Indian government to the trade and investment policies identified in the Commission’s ongoing investigation.”

The agency said it “will also include information on any new relevant trade and investment policies and practices in India, focusing on the period from mid-2014.”

It added that the agency expects to deliver the report to the committees by September 24, 2015, the official statement said, adding that it will hold a public hearing in connection with this investigation on April 7, 2015.

The new investigation is the ITC’s second probe regarding India’s trade and investment policies requested by the two committees.

In 2013, the committees jointly asked the agency to investigate Indian policies that restrict US trade and investment.

The ITC is expected to submit its report in that investigation – Trade, Investment, and Industrial Policies in India: Effects on the US Economy – to both the House and Senate committees on December 15.

10/29/2014