No New Duty Payment Requirements for Protests Despite Change to Dunning Letters, NCBFAA Says
A recent change to CBP policy on the timing of dunning letters does not create a new requirement to pay duties before filing a protest, the National Customs Brokers & Forwarders Association of America said in an emailed update. “CBP has clarified that its policy regarding protests has not changed; it is not a requirement that importers pay duties to lodge a protest,” the trade group said. The agency sent a CSMS message in August that said the agency is shortening the time for sending dunning letters in connection with outstanding bills, from 181 days to 61 days, “well within the 180 day protest period,” the NCBFAA said.
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According to the NCBFAA, CBP made the change after the Office of Management and Budget directed it to improve its collection rate for supplemental bills. Though there is no change to protest filing requirements, “the policy remains that additional duties assessed upon liquidation are a debt that CBP can collect and on which interest is accruing,” the NCBFAA said. “As a result, dunning letters indicating that interest is owed will be sent regardless of whether a protest is filed.” CBP did not immediately comment.
CBP has started issuing dunning letters threatening the importer with sanctions if the outstanding bill is not paid, but “the National Finance Center has indicated that it is not their intention to sanction an importer before the protest period expires,” the NCBFAA said. “Likewise, CBP has advised that they will not sanction an importer who protests a supplemental bill without making payment.” Importers “substantially or habitually delinquent” in paying customs bills may under 19 CFR 142.26 have their immediate delivery procedures revoked.
In the same August CSMS message, CBP announced it will divert scheduled refunds to offset delinquent bills older than 60 days. The change applies regardless of "whether a protest was filed in connection with the outstanding bill,” the NCBFAA said. However, “CBP has indicated that there are very few instances in which they would look to offset refunds against pending bills and they have advised that the importer of record will receive a letter explaining the offset,” the trade group said. “CBP has agreed to consider copying the entry filer on this correspondence.”