[Code of Federal Regulations]

[Title 19, Volume 1]

[Revised as of April 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 19CFR24.4]



[Page 376-377]

 

                        TITLE 19--CUSTOMS DUTIES

 

   CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF 

              HOMELAND SECURITY; DEPARTMENT OF THE TREASURY

 

PART 24_CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE--Table of Contents

 

Sec.  24.4  Optional method for payment of estimated import taxes on 

alcoholic beverages upon entry, or withdrawal from warehouse, for consumption.



    (a) Application to defer. An importer, including a transferee of 

alcoholic beverages in a Customs bonded warehouse who wishes to pay on a 

semi-monthly basis the estimated import taxes on alcoholic beverages 

entered, or withdrawn from warehouse, for consumption by him during such 

a period may apply by letter to the director of each port at which he 

wishes to defer payment. If the importer desires the additional 

privilege of depositing estimated tax payments on an extended deferred 

basis, it must be specifically requested. An importer who receives 

approval from a port director to defer such payments may, however, 

continue to pay the estimated import taxes due at the time of entry, or 

withdrawal from warehouse, for consumption.

    (b) Deferred payment periods. A period shall commence on October 24 

and run through October 31, 1965; thereafter the periods shall run from 

the 1st day of each month through the 15th day of that month, and from 

the 16th day of each month through the last day of that month. An 

importer may begin the deferral of payments of estimated tax to a 

Customs port in the first deferral period beginning after the date of 

the written approval by the port director. An importer may use the 

deferred payment system until the port director advises such importer 

that he is no longer eligible to defer the payment of such taxes.

    (c) Content of application and supporting documents. (1) An importer 

must state his estimate of the largest amount of taxes to be deferred in 

any semimonthly period based on the largest amount of import taxes on 

alcoholic beverages deposited at that port in such a period during the 

year preceding his application. He must also identify any existing bond 

or bonds that he has on file at the port and shall submit in support of 

his application the approval of the surety on his bond or bonds to the 

use of the procedure and to the increase of such bond or bonds to such 

larger amount or amounts as may be found necessary by the port director.

    (2) Each application must include a declaration in substantially the 

following language:



    I declare that I am not presently barred by any port director from 

using the deferred payment procedure for payment of estimated taxes upon 

imports of alcoholic beverages, and that if I am notified by a port 

director to such effect I shall advise the director of any other port 

where approval has been given to me to use such procedure.



    (d) Use of deferred payment method. (1) The port director will 

notify the importer, or his authorized agent if requested, of approval.

    (2) An importer who has received approval to make deferred payments 

retains the option of deferring or depositing the estimated tax on 

imported alcoholic beverages until the entry or withdrawal is presented 

to the cashier for payment of estimated duties. At the time the importer 

presents his entry or withdrawal for consumption to the cashier together 

with the estimated duty, he must either pay the estimated tax or 

indicate on the entry or withdrawal that he elects to defer the tax 

payment.

    (e) Tax deferment procedure. If the importer elects to defer the tax 

payments, he shall enter on each copy of the entry or withdrawal the 

words ``Tax Payment Deferred,'' adjacent to the amount shown on the 

documents as estimated taxes, before presentation to the cashier.

    (f) Payment procedure--(1) Billing. Each importer who has deferred 

tax payments on imported alcoholic beverages will be billed on Customs 

Form 6084, United States Customs Service Bill, at the end of each tax 

deferred period for all taxes deferred during the period. Each bill will 

identify each tax amount deferred and the related entry



[[Page 377]]



numbers. These bills must be paid in fully by the last day of the next 

succeeding deferral period.

    (2) Interest on overdue accounts. When any bill for deferred taxes 

is not paid within the period specified in subparagraph (f)(1) of this 

section, interest thereon from the date following the end of the 

specified period to the date of payment of the bill shall be assessed, 

collected, and paid in the same manner as the basic tax. The rate of 

interest to be assessed shall be 7 percent per annum or such other rate 

as is established by the Secretary of the Treasury or his delegate in 

accordance with 26 U.S.C. 6621(b).

    (g) Restrictions on deferring tax deposits. An importer may not on 

one entry, or withdrawal from warehouse for consumption, deposit part of 

the estimated tax and defer the balance of the tax. The estimated tax on 

each entry or withdrawal must be either fully paid or deferred.

    (h) Termination of deferred payment privilege. (1) When any bill on 

Customs Form 6084 for deferred taxes is not paid within the period 

specified in paragraph (f) of this section, a demand for payment shall 

be made to the surety on the importer's bond. If in the opinion of the 

customs officer concerned such failure to make timely payment of 

estimated deferred taxes warrants the withdrawal of the tax deferral 

privilege, he will advise the importer of the withdrawal of such 

privilege. In all instances of failure to pay timely the deferred taxes 

on alcoholic beverages withdrawn from warehouse for consumption, further 

withdrawals from the warehouse entry on which the tax is delinquent will 

be refused until payment is made of the amount delinquent.

    (2) The termination at any port of the tax deferral privilege for 

failure to pay timely any deferred estimated tax shall be at the 

discretion of the Customs officer concerned. Termination of the 

privilege for any other reason shall be subject to the approval of the 

Commissioner of Customs. Notice of termination of the tax deferral 

privilege at any port will be disseminated to all other Customs ports.

    (3) Renewal of the tax deferral privilege after it has been 

withdrawn at any port may be made only upon approval of the Commissioner 

of Customs.

    (i) Duration of deferred payment privilege. The deferred payment 

privilege once approved by the port director will remain in effect until 

terminated under the provisions of paragraph (h) or the importer or 

surety requests termination.

    (j) Entries for consumption or warehouse after an importer is 

delinquent. An importer who is delinquent in paying deferred taxes may 

make entries for consumption or for warehousing, or withdrawals for 

consumption from warehouse entries on which no delinquency exists, upon 

deposit of all estimated duties or taxes.

    (k) Rate of tax. The estimated taxes must be paid on the basis of 

the rates in effect upon entry, or withdrawal from warehouse, for 

consumption, unless in accordance with section 315 of the Tariff Act of 

1930, as amended, another date is applicable and not on the basis of the 

rates of tax in effect on the date deferred payment is made.



[28 FR 14808, Dec. 31, 1963, as amended by T.D. 56510, 30 FR 13359, Oct. 

21, 1965; T.D. 67-31, 32 FR 493, Jan. 18, 1967; T.D. 75-278, 40 FR 

51420, Nov. 5, 1975; T.D. 76-258, 41 FR 38767, Sept. 13, 1976; T.D. 84-

213, 49 FR 41170, Oct. 19, 1984; T.D. 95-77, 60 FR 50011, Sept. 27, 

1995; T.D. 99-27, 64 FR 13675, Mar. 22, 1999]