Temporary Postponement of the Time To Deposit Certain Estimated Duties, Taxes, and Fees During the National Emergency Concerning the Novel Coronavirus Disease (COVID-19) Outbreak
| Published date | 22 April 2020 |
| Citation | 85 FR 22349 |
| Record Number | 2020-08618 |
| Section | Rules and Regulations |
| Court | U.s. Customs And Border Protection |
Federal Register, Volume 85 Issue 78 (Wednesday, April 22, 2020)
[Federal Register Volume 85, Number 78 (Wednesday, April 22, 2020)]
[Rules and Regulations]
[Pages 22349-22352]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2020-08618]
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DEPARTMENT OF HOMELAND SECURITY
U.S. Customs and Border Protection
DEPARTMENT OF THE TREASURY
19 CFR Part 24
[USCBP-2020-0017; CBP Dec. 20-05]
RIN 1515-AE54
Temporary Postponement of the Time To Deposit Certain Estimated
Duties, Taxes, and Fees During the National Emergency Concerning the
Novel Coronavirus Disease (COVID-19) Outbreak
AGENCY: U.S. Customs and Border Protection, Department of Homeland
Security; Department of the Treasury.
ACTION: Temporary final rule.
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SUMMARY: In light of the President's Proclamation Declaring a National
Emergency Concerning the Novel Coronavirus Disease (COVID-19)
(Presidential Proclamation 9994) under the National Emergencies Act on
March 13, 2020, and the President's Executive Order entitled ``National
Emergency Authority to Temporarily Extend Deadlines for Certain
Estimated Payments'' authorizing the Secretary of the Treasury to
exercise the authority under section 318(a) of the Tariff Act of 1930,
issued on April 18, 2020, the Secretary of the Treasury, in
consultation with the designee of the Secretary of Homeland Security
(U.S. Customs and Border Protection (CBP)), is amending the CBP
regulations to temporarily postpone the deadline for importers of
record with a significant financial hardship to deposit certain
estimated duties, taxes, and fees that they would ordinarily be
obligated to pay as of the date of entry, or withdrawal from warehouse,
for consumption, for merchandise entered in March or April 2020, for a
period of 90 days from the date that the deposit would otherwise have
been due but for this emergency action. This temporary postponement
does not permit return of any deposits of estimated duties, taxes, and/
or fees that have been paid. This temporary postponement also does not
apply to entries, or withdrawals from warehouse, subject to certain
specified trade remedies, and any entry summary that includes
merchandise subject to those trade remedies is not eligible under this
rule.
DATES: Effective date: April 20, 2020. Comments must be received by May
20, 2020.
[[Page 22350]]
ADDRESSES: You may submit comments, identified by docket number USCBP-
2020-0017, by one of the following methods:
Federal eRulemaking Portal at http://www.regulations.gov.
Follow the instructions for submitting comments via Docket No. USCBP-
2020-0017.
Mail: Trade and Commercial Regulations Branch, Regulations
and Rulings, Office of Trade, U.S. Customs and Border Protection, 90 K
Street NE, 10th Floor, Washington, DC 20229-1177.
Instructions: All submissions received must include the agency name
and docket number for this rulemaking. All comments received will be
posted without change to http://www.regulations.gov, including any
personal information provided. For detailed instructions on submitting
comments and additional information on the rulemaking process, see the
Public Participation heading of the SUPPLEMENTARY INFORMATION section
of this document.
Docket: For access to the docket to read background documents or
comments received, go to http://www.regulations.gov. Due to the
relevant COVID-19-related restrictions, CBP has temporarily suspended
its on-site public inspection of the public comments.
FOR FURTHER INFORMATION CONTACT: Randy Mitchell, Director, Commercial
Operations Revenue Entry Division, Office of Trade, U.S. Customs and
Border Protection, 202-325-6532 or by email at
[email protected].
SUPPLEMENTARY INFORMATION:
I. Public Participation
Interested persons are invited to participate in this rulemaking by
submitting written data, views, or arguments on all aspects of this
temporary final rule. See ADDRESSES above for information on how to
submit comments. CBP also invites comments that relate to the economic,
environmental, or federalism effects that might result from this
regulatory change. Comments that will provide the most assistance to
CBP will reference a specific portion of the rule, explain the reason
for any recommended change, and include data, information, or authority
that support such recommended change.
II. Background
On March 13, 2020, the President issued Proclamation 9994,
Declaring a National Emergency Concerning the Novel Coronavirus Disease
(COVID-19), under the National Emergencies Act (50 U.S.C. 1601 et seq.)
and found and proclaimed that the COVID-19 outbreak in the United
States constitutes a national emergency, beginning March 1, 2020. On
April 18, 2020, the President issued the Executive Order entitled
``National Emergency Authority to Temporarily Extend Deadlines for
Certain Estimated Payments'' (hereinafter ``Postponement of Deposit
E.O.'') authorizing the Secretary of the Treasury to respond to the
national emergency declared by Presidential Proclamation 9994, pursuant
to the authority in section 318(a) of the Tariff Act of 1930 (19 U.S.C.
1318(a)). Upon consultation by the Secretary of the Treasury with the
designee of the Secretary of Homeland Security (U.S. Customs and Border
Protection (CBP)), and for the reasons set forth below, CBP is amending
its regulations to respond to the ongoing national emergency.
Due to the COVID-19 pandemic, local, state and national
restrictions have forced the closure of offices of the importing
community and those businesses have limited their operations and
procedures. Many importers of record will be receiving diminished or no
revenue during this time while still incurring costs, including the
duties, taxes, and fees associated with imported merchandise for their
clients and supply chains. Aggravating matters, many major retail
chains and other businesses are closing for business--either
voluntarily in response to the President's call or following state or
local government requirements.
As a result, many importers of record are undergoing significant
financial hardship with operations fully or partially suspended during
March or April 2020 due to orders from competent governmental
authorities imposing limits on commerce, travel, or group meetings
because of COVID-19. Many importers of record are also having
difficulty authorizing payments for duties, taxes, and fees on imported
merchandise. Employees are having difficulty getting to work or are
having technical issues with working remotely, making it difficult to
contact the individuals responsible for the release of funds, which is
leading to delays in payments of duties, taxes, and fees.
Under 19 U.S.C. 1318(a), whenever the President shall by
proclamation declare an emergency to exist by reason of a state of war,
or otherwise, he may authorize the Secretary of the Treasury to extend
during the continuance of such emergency the time prescribed for the
performance of any act. To address the specific circumstances created
by the COVID-19 pandemic, and without creating, for the avoidance of
doubt, a binding precedent for future exercises of the authority
granted by 19 U.S.C. 1318(a), the Secretary of the Treasury, in
consultation with the designee of the Secretary of Homeland Security
(U.S. Customs and Border Protection (CBP)), under 19 U.S.C. 1318(a) and
as authorized by the Postponement of Deposit E.O., is amending the CBP
regulations by adding a new section 24.1a to title 19 of the Code of
Federal Regulations (19 CFR 24.1a) to temporarily postpone the deadline
for importers of record to deposit certain estimated duties, taxes, and
fees that they would ordinarily be obligated to pay as of the date of
entry, or withdrawal from warehouse, for consumption, for merchandise
entered in March or April 2020, for a period of 90 days from the date
that the deposit would otherwise have been due but for this emergency
action. In addition, no interest that would otherwise accrue upon such
estimated duties, taxes, and fees will accrue during the 90-day
postponement period.
This emergency action is being taken in response to the
extraordinary challenges facing U.S. individuals and businesses during
the COVID-19 national emergency (which significantly affects the trade
community), and is consistent with the Secretary of the Treasury's
decision to postpone due dates for Federal income tax payments under
section 7508A(a) of the Internal Revenue Code (available at https://www.irs.gov/coronavirus).
This temporary postponement is limited. This temporary postponement
does not permit return of any deposits of estimated duties, taxes, and/
or fees that have been paid. This temporary postponement also does not
apply to any entry, or withdrawal from warehouse, for consumption, or
any deposit of estimated duties, taxes, or fees for the entry, or
withdrawal from warehouse, for consumption, where the entry summary
includes any merchandise subject to one or more of the following:
Antidumping duties (assessed pursuant to 19 U.S.C. 1673 et seq.),
countervailing duties (assessed pursuant to 19 U.S.C. 1671 et seq.),
duties assessed pursuant to Section 232 of the Trade Expansion Act of
1962 (19 U.S.C. 1862), duties assessed pursuant to Section 201 of the
Trade Act of 1974 (19 U.S.C. 2251 et seq.), and duties assessed
pursuant to Section 301 of the Trade Act of 1974 (19 U.S.C. 2411 et
seq.). Accordingly, CBP anticipates that importers will file separate
entries when a shipment contains both merchandise that is eligible for
temporary postponement and merchandise that is
[[Page 22351]]
ineligible (because of the above-specified trade remedies).
To qualify for this temporary postponement, an importer must
demonstrate a significant financial hardship. An eligible importer's
operation must be fully or partially suspended during March or April
2020 due to orders from a competent governmental authority limiting
commerce, travel, or group meetings because of COVID-19, and as a
result of such suspension, the gross receipts of such importer for
March 13-31, 2020 or April 2020 are less than 60 percent of the gross
receipts for the comparable period in 2019. 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.
This temporary postponement does not apply to deadlines for the
payment of other debts to CBP, including but not limited to deadlines
for the payment of bills for duties, taxes, fees, and interest
determined to be due upon liquidation or reliquidation, deadlines for
the payment of fees authorized pursuant to 19 U.S.C. 58c (except for
merchandise processing fees and dutiable mail fees), or deadlines for
the payment of any penalty or liquidated damages due to CBP.
CBP notes that for some types of entries, the time of entry is
contingent (in part) upon the deposit of estimated duties, taxes, and
fees. See, e.g., 19 CFR 141.68(b). To ensure clarity in the application
of the temporary postponement vis-[agrave]-vis the time of entry, this
emergency action includes a waiver of the regulatory requirement to
deposit estimated duties, taxes, and fees for the purpose of
establishing the time of entry in those instances where it would
otherwise be required under 19 CFR 141.68. The time of entry can thus
be established in the absence of the deposit of estimated duties,
taxes, and fees postponed in accordance with this emergency action.
III. Statutory and Regulatory Requirements
A. Inapplicability of Notice and Delayed Effective Date
The Administrative Procedure Act (APA) requirements in 5 U.S.C. 553
govern agency rulemaking procedures. Section 553(b) of the APA
generally requires notice and public comment before issuance of a final
rule. In addition, section 553(d) of the APA requires that a final rule
have a 30-day delayed effective date. The APA, however, provides
exceptions from the prior notice and public comment requirement and the
delayed effective date requirements, when an agency for good cause
finds that such procedures are impracticable, unnecessary, or contrary
to the public interest. 5 U.S.C. 553(b)(B), (d)(3). CBP finds that
prior notice and comment are impracticable and contrary to the public
interest and that good cause exists to issue this rule immediately.
As noted above, the ongoing unprecedented situation related to
COVID-19 is having a nationwide impact, as demonstrated by the
declaration of a national emergency by the President. The postponement
of the payment period for the deposit of certain estimated duties,
taxes, and fees as of the date of entry, or withdrawal from warehouse,
for consumption, of merchandise imported into the United States
supports American workers and businesses who are currently affected by
COVID-19. To protect our public interests during the ongoing national
emergency, the Secretary of the Treasury, in consultation with CBP,
concludes, pursuant to 5 U.S.C. 553(b)(B), that there is good cause to
dispense with prior public notice and the opportunity to comment on
this rule before finalizing this rule. For the same reasons, the
Secretary of the Treasury, in consultation with CBP, has determined,
consistent with section 553(d)(3) of the APA, that there is good cause
to make this temporary final rule effective immediately.
B. Executive Orders 13563, 12866 and 13771
Executive Orders 13563 and 12866 direct agencies to assess the
costs and benefits of available regulatory alternatives and, if
regulation is necessary, to select regulatory approaches that maximize
net benefits (including potential economic, environmental, public
health and safety effects, distributive impacts, and equity). Executive
Order 13563 emphasizes the importance of quantifying both costs and
benefits, of reducing costs, of harmonizing rules, and of promoting
flexibility. Executive Order 13771 directs agencies to reduce
regulation and control regulatory costs and provides that ``for every
one new regulation issued, at least two prior regulations be identified
for elimination, and that the cost of planned regulations be prudently
managed and controlled through a budgeting process.''
This temporary final rule is a ``significant regulatory action,''
under section 3(f) of Executive Order 12866, but not an ``economically
significant regulatory action.'' Accordingly, the Office of Management
and Budget (OMB) has reviewed this regulation. This regulation has been
prepared under the emergency flexibilities provided under section
6(a)(3)(D) of Executive Order 12866. The costs of this rule are
considered de minimis for purposes of Executive Order 13771. See OMB's
Memorandum titled ``Guidance Implementing Executive Order 13771, Titled
`Reducing Regulation and Controlling Regulatory Costs' '' (April 5,
2017).
C. Regulatory Flexibility Act
The Regulatory Flexibility Act (5 U.S.C. 601 et seq.), as amended
by the Small Business Regulatory Enforcement and Fairness Act of 1996,
requires an agency to prepare and make available to the public a
regulatory flexibility analysis that describes the effect of a proposed
rule on small entities (i.e., small businesses, small organizations,
and small governmental jurisdictions) when the agency is required to
publish a general notice of proposed rulemaking for a rule. Since a
general notice of proposed rulemaking is not necessary for this rule,
CBP is not required to prepare a regulatory flexibility analysis for
this rule.
D. Paperwork Reduction Act
This temporary final rule does not impose an additional information
collection burden under the Paperwork Reduction Act of 1995 (44 U.S.C.
3507) and does not involve any material change to the existing approved
information collection by OMB under assigned OMB control number 1651-
0078. An agency may not conduct or sponsor, and a person is not
required to respond to, a collection of information unless the
collection of information displays a valid control number assigned by
OMB.
E. Signing Authority
This document is being issued by CBP in accordance with Sec.
0.1(a)(1) of the CBP Regulations (19 CFR 0.1(a)(1)) pertaining to the
authority of the Secretary of the Treasury (or his/her delegate) to
approve regulations related to certain customs revenue functions.
List of Subjects in 19 CFR Part 24
Accounting, Claims, Harbors, Reporting and recordkeeping
requirements, Taxes.
Amendments to the Regulations
For the reasons stated above, part 24 of title 19 of the Code of
Federal Regulations (19 CFR part 24) is amended as set forth below:
[[Page 22352]]
PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE
0
1. The general authority citation for part 24 continues and a new
specific authority is added to read as follows:
Authority: 5 U.S.C. 301; 19 U.S.C. 58a-58c, 66, 1202 (General
Note 3(i), Harmonized Tariff Schedule of the United States), 1505,
1520, 1624; 26 U.S.C. 4461, 4462; 31 U.S.C. 3717, 9701; Pub. L. 107-
296, 116 Stat. 2135 (6 U.S.C. 1 et seq.).
* * * * *
Section 24.1a also issued under 19 U.S.C. 1318;
* * * * *
0
2. Section 24.1a is added to read as follows:
Sec. 24.1a Temporary Postponement of Deadline to Deposit Certain
Estimated Duties, Taxes, and Fees Because of the COVID-19 National
Emergency
(a) General. Pursuant to the authority of 19 U.S.C. 1318(a),
subject to the conditions in paragraphs (a)(1) through (4) of this
section, the deadline for the deposit of estimated duties, taxes, and
fees that an importer of record would ordinarily be obligated to pay as
of the date of entry, or withdrawal from warehouse, for consumption, of
imported merchandise into the United States is postponed for a period
of 90 days from the date that the deposit would otherwise have been
due. No interest will accrue for the delayed deposit of such estimated
duties, taxes, and fees during this 90-day temporary postponement.
(1) This temporary postponement applies only to entries, or
withdrawals from warehouse, for consumption, made on or after March 1,
2020, and no later than April 30, 2020, by importers of record with a
significant financial hardship. This temporary postponement does not
permit return of any deposits of estimated duties, taxes, and/or fees
that have been paid.
(2) An importer will be considered to have a significant financial
hardship if the operation of such importer is fully or partially
suspended during March or April 2020 due to orders from a competent
governmental authority limiting commerce, travel, or group meetings
because of COVID-19, and as a result of such suspension, the gross
receipts of such importer for March 13-31, 2020, or April 2020 are less
than 60 percent of the gross receipts for the comparable period in
2019. 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.
(3) No penalty, liquidated damages claim, or other sanction will be
imposed for the delayed deposit of estimated duties, taxes, and fees in
accordance with a deadline postponed under this section.
(4) This temporary postponement does not apply to any entry, or
withdrawal from warehouse, for consumption, or any deposit of estimated
duties, taxes, or fees for the entry, or withdrawal from warehouse, for
consumption, where the entry summary includes any merchandise subject
to one or more of the following: Antidumping duties (assessed pursuant
to 19 U.S.C. 1673 et seq.), countervailing duties (assessed pursuant to
19 U.S.C. 1671 et seq.), duties assessed pursuant to Section 232 of the
Trade Expansion Act of 1962 (19 U.S.C. 1862), duties assessed pursuant
to Section 201 of the Trade Act of 1974 (19 U.S.C. 2251 et seq.), and
duties assessed pursuant to Section 301 of the Trade Act of 1974 (19
U.S.C. 2411 et seq.).
(b) Time of entry. For entries eligible for the temporary
postponement of deposits under paragraph (a) of this section, the
requirement to deposit estimated duties, taxes, and fees for the
purpose of establishing the time of entry stated in 19 CFR 141.68 is
waived.
Mark A. Morgan,
Acting Commissioner, U.S. Customs and Border Protection.
Approved: April 19, 2020.
Timothy E. Skud,
Deputy Assistant Secretary of the Treasury.
[FR Doc. 2020-08618 Filed 4-20-20; 10:30 am]
BILLING CODE 9111-14-P
