Every Monday we post the highlights out of last week’s FCC Export/Import Daily Update (“The Daily Bugle”). Send out every business day to approximately 8,500 readers of changes to defense and high-tech trade laws and regulations, The Daily Bugle is a free daily newsletter from Full Circle Compliance, edited by James E. Bartlett III, Salvatore Di Misa, and Elina Tsapouri.
We check the following sources daily: Federal Register, Congressional Record, Commerce/AES, Commerce/BIS, DHS/CBP, DOE/NRC, DOJ/ATF, DoD/DSS, DoD/DTSA, FAR/DFARS, State/DDTC, Treasury/OFAC, White House, and similar websites of Australia, Canada, U.K., and other countries and international organizations. Due to space limitations, we do not post Arms Sales notifications, Denied Party listings, or Customs AD/CVD items. To subscribe, click here.
Last week’s highlights of The Daily Bugle included in this edition are:
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- DHS/CBP: “90 Day Postponement of Payment for the Deposit of Certain Estimated Duties, Taxes, and Fees”; The Daily Bugle; Monday, 20 April 2020; Item #4.
- Netherlands TCA: “PPE: Import Duty Relief (Update)”; The Daily Bugle; Tuesday, 21 April 2020; Item #7.
- DHS/CBP: “Information for Filing PPE and Medical Devices During COVID-19”; Wednesday, 22 April 2020; Item #5.
- DHS/CBP Publishes FAQ for 90 Day Postponement of Payment for the Deposit of Certain Estimated Duties, Taxes, and Fees; The Daily Bugle; Thursday, 23 April 2020; Item #3.
- EU Commission Publishes Report on the Impact of Coronavirus on EU Trade; The Daily Bugle; Friday, 24 April 2020; Item #6.
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DHS/CBP: “90 Day Postponement of Payment for the Deposit of Certain Estimated Duties, Taxes, and Fees”
(Source: DHS/CBP, 19 Apr 2020)
On April 20, 2020, the Secretary of the Treasury and U.S. Customs and Border Protection (CBP) will be postponing for 90 calendar days the deadline for payment for the deposit of certain estimated duties, taxes, and fees for importers experiencing a significant financial hardship due to the coronavirus disease (COVID-19). This temporary postponement applies to formal entries of merchandise entered, or withdrawn from warehouse, for consumption (including entries for consumption from a Foreign Trade Zone) in March or April 2020. CBP will not return deposits of estimated duties, taxes, and fees that have already been paid.
This temporary postponement does not apply to any entry, or withdrawal from warehouse, for consumption, where the entry summary includes merchandise subject to one or more of the following:
(1) Antidumping duties,
(2) Countervailing duties,
(3) Duties assessed pursuant to Section 232 of the Trade Expansion Act of 1962,
(4) Duties assessed pursuant to Section 201 of the Trade Act of 1974, and
(5)Duties assessed pursuant to Section 301 of the Trade Act of 1974.
No interest will accrue for the postponed payment of such estimated duties, taxes, and fees during this 90-day postponement period. No penalty, liquidated damages, or other sanction will be imposed for the postponed payment of the deposit of estimated duties, taxes, and fees in accordance with this temporary postponement.
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.
To determine the amount of estimated duties, taxes, and fees owed, the date used for calculation remains the date that would have otherwise applied in the absence of the 90-day postponement period.
For entries eligible for this temporary postponement, the requirement to pay the deposit of estimated duties, taxes, and fees for the purpose of establishing the time of entry stated in 19 CFR § 141.68 is waived.
The timeframe for entry summary filing is not changed.
SIGNIFICANT FINANCIAL HARDSHIP
An iporter will be considered to have a significant financial hardship if the operation of such importer is fully or partially suspended during March 2020 or April 2020 due to orders from a competent governmental authority limiting commerce, travel, or group meetings due to 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 does not need to file 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. CBP may also conduct a review of the documentation at a future date to ensure compliance with the requirements.
ENTRIES NOT ELIGIBLE FOR THE 90-DAY POSTPONEMENT
This temporary postponement of payment of estimated duties, taxes, and fees does not apply to any entry, or withdrawal from warehouse, for consumption, where the entry summary includes merchandise subject to antidumping duties, countervailing duties and/or Section 201, 232 or 301 duties.
In order to take advantage of the 90-day postponement period, importers/filers must ensure their entries do not include merchandise that is ineligible for the postponed payment. If, for example, an entry is filed with merchandise subject to antidumping duties, AND merchandise not subject to antidumping duties, the entire entry will NOT be eligible for the 90-day postponed payment. As an alternative, CBP is authorizing the submission of separate entries pursuant to 19 CFR § 141.52. This authorization only applies to entries that have not yet been filed; it does not apply to entries that have already been filed. So if, as in the above example, a shipment has merchandise subject to antidumping duties, AND merchandise not subject to antidumping duties, two separate entries can be made.
PAYMENT TIMEFRAMES
Estimated duties, taxes, and fees paid on single pay basis or Daily Statement may be postponed up to 90 days from the payment due date.
Example:
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Original Due Date |
90-Day Postponement |
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April 30, 2020 |
July 29, 2020 |
Estimated Internal Revenue Tax paid via the deferred tax schedule may be postponed up to three months from the payment due date.
Example:
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Original Due Date |
3 Month Postponement |
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April 29, 2020 |
July 29, 2020 |
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May 14, 2020 |
August 14, 2020 |
Read more about the payment instructions here
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Netherlands TCA: “PPE: Import Duty Relief (Update)”
(Source: Netherlands Tax and Customs Administration, 20 Apr 2020)
The corona virus is a huge challenge for citizens and businesses. We notice that many wish to contribute to combating the virus, such as donating personal protective equipment (PPE) to care institutions. It is really needed as there is a substantial shortage.
Under certain conditions, personal protection equipment may be imported with duty relief.
Update
On 26 March 2020, we published our first news release on this topic. You will find important supplementary information below. You will note typical examples of personal protection equipment. We provide an explanation as to how to apply for an authorisation for duty relief.
What is personal protection equipment?
Personal protection equipment includes at any rate:
- FFP1, FFP2 and FFP3 masks
- Medical protective coats
- Safety splash goggles
- Medical aprons
- Surgical masks
- Examination gloves
- Diagnostic tests
The conditions for import duty relief
Prior to being able to make use of the duty relief, you must apply for an authorisation from Customs. You may only apply to Customs in the Member State where the (care) institution is based.
To be eligible for the authorisation, you have to meet the conditions set out in the Council Regulation (EC) No. 1186/2009.
(1) The personal protective equipment must be imported by an organisation which falls within one of the following categories:
- government institutions
- charity institutions or philanthropic organizations
- relief agencies, hospitals, care institutions or care providers entered into the BIG Register (the Register of the Professions in Individual Health Care)
Please Note: Charity Institutions and philanthropic organizations currently only include the Dutch Red Cross and the Salvation Army.
(2) The goods are made available at no charge to the victims of a disaster or the goods are used for the benefit of the victims. Alternatively, the goods are at any rate used for a relief agency for the duration of their assistance. Covid-19 is defined as a disaster.
To apply for an authorisation
Are you an organization referred to in the list above? Please apply for the authorisation to what is referred to as the commercial contact point in your area. During the course of the corona crisis, you can contact the commercial contact points by E-mail and you can find the E-mail addresses at douane-telefoonnummers voor bedrijven, under ‘Contact met de Douane tijdens de coronacrisis’. The commercial contact point will send you a ‘care institution statement’ as soon as possible. Please complete the form and return it to the commercial contact point.
Are you a company or an intermediary acting on behalf of an (relief)organization? You can arrange for the licence in the same way. However, do not complete the ‘care institution statement’ yourself but make arrangements for the (relief) organization to complete that section – as they will be using the duty relief.
Did you get permission from the commercial contact point to use the duty relief? Note the duty relief code C26 in your import declaration. The relief organization will receive the licence retrospectively from Customs.
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DHS/CBP: “Information for Filing PPE and Medical Devices During COVID-19”
(Source: DHS/CBP, 21 Apr 2020)
The U.S. Food and Drug Administration is providing an update to CSMS messages 42124872 and 42168200 for instructions to the import community regarding the submission of entry information for personal protective equipment and certain other devices. Following the instructions below will help facilitate the import process for all; especially for products related to the Coronavirus Disease-2019 (COVID-19) public health emergency. It is in the best interest of the U.S. to facilitate and expedite the importation of products into the U.S. market that address immediate, urgent public health needs.
Because this a very fluid situation and FDA policy for these products are updated regularly, for the most up to date information on entry submission visit the FDA website: Information for Filing Personal Protective Equipment and Medical Devices During COVID-19.
Non-FDA-regulated general purpose personal protective equipment (masks, respirators, gloves, etc.)
Personal protective equipment for general purpose or industrial use (that is, products that are not intended for use to prevent disease or illness) is not regulated by FDA.
For these types of products, entry information should not be transmitted to FDA. At the time of entry for these products, Importers should transmit entry information to US Customs and Border Protection (CBP) using an appropriate HTS code with no FD Flag; or using an appropriate HTS code with an FD1 flag and do a ‘disclaim’ for FDA.
Products authorized for emergency use pursuant to an Emergency Use Authorization (EUA)
When importing such products, entry information should be submitted to FDA; however reduced FDA information is required for review.
At the time of entry, Importers should transmit an Intended Use Code of 940.000: Compassionate Use/Emergency Use Device, and an appropriate FDA product code. Under this Intended Use Code, the Affirmations of Compliance for medical devices (such as the Registration, Listing, and Premarket numbers) are optional in ACE.
Below is a list of products and certain product codes authorized by an EUA. A complete list of product codes may be found in corresponding enforcement policy guidance documents identified below.
- Non-NIOSH-Approved Respirators: 80QKU
- NIOSH-Approved Respirators
- Face Masks (Non-Surgical)
- Diagnostic Tests Kits
- Ventilators
- Face Shields
- Respirator Decontamination Systems
- Extracorporeal Blood Purification Devices
- Infusion Pumps
- Ventilators
- Diaphragmatic Pacing Simulator Systems
A full list of Emergency Use Authorizations currently in place for the COVID-19 emergency is also available on the FDA’s website. Please check this site regularly for current information on products authorized by an EUA. Future updates to this message will only identify new EUAs in this section. The full list will be provided on the FDA website: Information for Filing Personal Protective Equipment and Medical Devices During COVID-19.
Products regulated by FDA as a device, not authorized by an EUA, but where an enforcement discretion policy has been published in guidance.
When importing such devices, entry information should be submitted to FDA.
At the time of entry, Importers should transmit Intended Use Code 081.006: Enforcement discretion per final guidance, and an appropriate FDA product code. Under this Intended Use Code, the Affirmations of Compliance for medical devices (such as the Registration, Listing, and Premarket numbers) are optional in ACE.
Below is a listing of guidance documents that have been issued for specific products related to COVID-19, which reference applicable product codes and policy for those products:
- Telethermographic Systems
- Remote Ophthalmic Assessment and Monitoring Devices
- Extracorporeal Membrane Oxygenation and Cardiopulmonary Bypass Devices
- Infusion Pumps and Accessories
- Digital Health Devices for Treating Psychiatric Disorders
- Clinical Electronic Thermometers
- Gowns, Other Apparel, and Gloves
- Sterilizers, Disinfectant Devices and Air Purifiers
- Face Masks and Respirators
- Non-Invasive Remote Monitoring Devices
- Ventilators and Accessories and Other Respiratory Devices
- Diagnostic Tests
A full list of all guidance documents related to COVID-19 is also available on FDA’s website. For guidance applicable to medical devices, you may filter by the medical device product area and display all entries. Please check this site, as well as Information for Filing Personal Protective Equipment and Medical Devices During COVID-19, regularly for current information on these and other product areas. …
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DHS/CBP Publishes FAQ for 90 Day Postponement of Payment for the Deposit of Certain Estimated Duties, Taxes, and Fees
(Source: DHS/CBP, 22 Apr 2020)
Effective April 20, 2020, the Secretary of the Treasury and U.S. Customs and Border Protection (CBP) have postponed for 90 calendar days the deadline for payment for the deposit of certain estimated duties, taxes, and fees for importers experiencing a significant financial hardship due to the coronavirus disease (COVID-19).
CBP is regularly compiling and posting answers to Frequently Asked Questions regarding this temporary postponement on the CBP.gov COVID-19 Updates and Announcements webpage.
The trade community should monitor CSMS and the COVID-19 Updates and Announcements webpage for additional changes related to COVID-19. Policy questions should be directed to the Office of Trade, Trade Policy and Programs at OTentrysummary@cbp.dhs.gov.
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EU Commission Publishes Report on the Impact of Coronavirus on EU Trade
(Source: European Commission, 23 Apr 2020)
The current world health crisis will result in a decline of 9.2% in EU exports and 8.8% in EU imports from third countries in 2020, according to the EU Chief Economist note, based on the estimated decline in GDP worldwide.
The increasing spread of the virus has prompted many governments to temporarily shut down businesses, and restrict travel and the movement of people. These measures will lead to sharp contractions in the level of economic output, household spending, investment and international trade.
While there is a wealth of forecasts on GDP growth in 2020, there is a limited range of work done on trade projections for 2020, in particular for EU trade.
The analysis outlined in this note is one of the few attempts at predicting the impact of the COVID19 outbreak on trade flows. In order to test the robustness of this analysis, results are also compared to the latest WTO trade forecasts published on 8 April.
Read the report here.