The Trump Administration will allow some companies to postpone tariff payments on imports for certain goods coming into the U.S. in March and April. An executive order granting the relief does not include Section 301, Section 201 and Section 232 aluminum and steel tariffs. The temporary tariff postponement does not permit the return of any deposits of estimated duties, taxes and/or fees that have already been paid, nor does it apply to entries or withdrawals from a warehouse.

Both the National Retail Federation and Footwear Distributors and Retailers of America quickly responded to the April 19 action that requires an importer to demonstrate significant financial hardship due to COVID-19 and meet two criteria to qualify. One measure requires the gross receipts of a qualified importer between March 13 and 31 or all of April “to be less than 60 percent of gross receipts for the comparable 2019 period.”

In a statement, FDRA President and CEO Matt Priest said, “Our companies and workers are struggling right now and we need this action more than ever. My sincere thanks goes out to all the shoe executives, workers and other stakeholders who engaged with the Trump Administration and members of Congress through letters and calls…We asked for this delay on March 10th and are happy to see it come to fruition.”

Matthew Shay, president and CEO of the NRF, commented, “This deferral provides some retailers with additional liquidity and better cash flow, giving hope for business continuity and a faster recovery once the pandemic has passed.”