The National Customs Brokers & Forwarders Association of America is seeing “an unprecedented connectivity with CBP” so far through the COVID-19 pandemic, said Alan Klestadt, customs counsel to the NCBFAA, during an April 21 webinar with lawyers for the association. “We're speaking with senior headquarters officials on a daily basis, multiple times a day, talking with them about developing policy, whether it is statement processing, duty deferral,” said Klestadt, a lawyer at Grunfeld Desiderio. That's particularly important when others in government “don't appreciate the granularity” of detail that customs brokers need to “effectively implement the policy decisions and the policy goals that the administration is pursuing.”
Customs Duty
A Customs Duty is a tariff or tax which a country imposes on goods when they are transported across international borders. Customs Duties are used to protect countries' economies, residents, jobs, and environments, by limiting the flow of imported merchandise, especially restricted and prohibited goods, into the country. The Customs Duty Rate is a percentage determined by the value of the article purchased in the foreign country and not based on quality, size, or weight.
CBP clarified its timing requirements for customs duty deferrals (see 2004200024) in April during an April 20 conference call with industry, the National Customs Brokers & Forwarders Association of America said in an emailed update. The April 20 filing deadline “is only relevant to the statements that are being processed for payments” on April 21, CBP said, according to the NCBFAA. “For April 30, you have until April 29, at 11:59 P.M., to effect changes on that statement.” Meanwhile, CBP also posted a list of frequently asked questions. Among other things, CBP said drawback claims against estimated duties that are being deferred shouldn't be filed. “CBP is advising that filers delaying duty payment during the 90 day postponement period due to financial hardships, should not file drawback claims until payments have been properly made on the import entry(s),” it said.
The Customs Rulings Online Search System (CROSS) was updated on April 20. The following headquarters rulings not involving carriers were modified on April 17 or April 20, according to CBP:
The Commerce Department issued notices in the Federal Register on its recently initiated antidumping and countervailing duty investigations on non-refillable steel cylinders from China (A-570-126/C-570-127). The CV duty investigation covers entries Jan. 1, 2019, through Dec. 31, 2019. The AD duty investigation covers entries July 1, 2019, through Dec. 31, 2019.
Although the hearing scheduled for input on a Kenya Free Trade deal was canceled, comments continue to come in for what the U.S. trade representative's priorities should be.
President Donald Trump authorized the temporary extension of “deadlines, for importers suffering significant financial hardship because of COVID-19,” in an April 19 Executive Order. “To qualify for this temporary postponement, an importer must demonstrate a significant financial hardship,” CBP said in a prepublication version of a temporary final rule. While the CBP notice limits the deferrals to March and April payments, the EO gives the Treasury secretary broad authority to postpone duty collections during the COVID-19 national emergency.
President Donald Trump authorized the temporary extension of "deadlines, for importers suffering significant financial hardship because of COVID-19" in an April 19 Executive Order. "To qualify for this temporary postponement, an importer must demonstrate a significant financial hardship," CBP said in a prepublication version of a temporary final rule. "An eligible importer need not file additional documentation with CBP to be eligible for this relief but must maintain documentation as part of its books and records establishing that it meets the requirements for relief," it said.
There could be a dramatic increase on the number of Importer insolvencies in the near future unless something major changes, said Lisa Gelsomino, a co-chair of the Commercial Customs Operations Advisory Committee (COAC) and CEO of Avalon Risk Management. “We're expecting that if things don't change soon there's going to be at least a 25 percent increase of importer insolvencies from last year,” she said during the April 15 COAC meeting. With many small businesses now shut down for about 30 days, a lot “really are not going to have the ability to pay, come soon,” she said.
International Trade Today is providing readers with some of the top stories for April 6-10 in case they were missed.
The Customs Rulings Online Search System (CROSS) was updated on April 13. The following headquarters rulings not involving carriers were modified on April 13, according to CBP: