U.S. Customs COVID Duty Deferral Program Canceled

Unfortunately, after deeming the process “too complicated,” U.S. Customs and Border Protection (CBP) has decided to renege on its earlier relief effort of duty deference announced a week ago. On Friday, April 3, 2020, White House Economic Adviser Larry Kudlow stated that after considering wide-spread or conditional duty deferrals, he does not expect any duty rollbacks. According to a recent NCBFAA announcement, “After considering a limit on such deferrals to most-favored nation duties, Kudlow said the administration determined that such an action was ‘too complicated’ and ‘might send the wrong signals.'”

The original program was rumored to extend duty payments up to 90 days. The program, or the idea around it, was put into place as a result of the COVID-19 / Coronavirus pandemic and its effect on importers. CBP accepted requests for payment extensions on duties owed to U.S. Customs by emailing otentrysummary@cbp.dhs.gov and worked on these on a case-by-case scenario. This is no longer occurring.

Duty Deferral COVID

Duty Savings Opportunities

The United States Trade Representative, does however, continue to grant product exclusions for Section 301 imports from China. There are a number of other ways to legally avoid paying duty and/or recover duty paid to U.S. Customs should an importer qualify for such opportunities. Scarbrough Consulting, Inc. offers a free 30-minute consultation to walk through your supply chain to find ways to optimize, save money, avoid risk, and add to your bottom line. Email consulting@scarbrough-intl.com or fill out the form below to set up a Zoom call today.

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About Scarbrough

The Scarbrough Group of Companies, headquartered in Kansas City with local presence in every major port in the world, is a complete international and domestic supply chain service provider, offering U.S., Mexican, and Canadian Customs brokerage, Import & Export Transportation Solutions, Domestic brokerage and asset-based trucking, Warehouse fulfillment and distribution services, Trade Compliance Consulting, Large Equipment and Project Cargo moves, as well as Parcel Audit Savings.  Scarbrough is widely known for its trade experts, training, personalized customer service, customized solutions, and data analytics tools.  Since 1984, Scarbrough has continued to satisfy its clients by following its motto on a daily basis: “It is our job to make your job easier.”  Moreover, our team of experts is available at your disposal.  We offer free consultations on any topic from supply chain optimization and duty savings opportunities to the basics, helping to guide new importers and exporters as they jump into the world of global trade.  Contact us now.