Blog/News

An Update to Our Clients

Dear Valued Client:

Due to the market disruption caused by the COVID-19 virus, many stores are postponing, rejecting and even canceling orders, while others are delaying payment on existing receivables. We understand that these issues will cause cash flow problems for many of our clients.

We are here to help you where possible, but many businesses will need additional capital to make it through the next few months. We strongly encourage affected business owners to make short term loans to their businesses to cover these immediate cash needs.

There are also federal, state and local public resources available:

  • For assistance outside of New York, please check with your state and local agencies as well as local SBA offices (listed at the bottom of the SBA website provided)

We encourage you to research all your options, reach out to your account officer to discuss any issues you are facing and let us know how we can help you during these challenging times.

Update as of 3/24/2020: As a reminder no client is allowed to grant any additional payment terms to any customer without the prior written authorization of the respective Re-factor.


Essential Updates for Businesses & Individuals

As each new day unfolds during the current COVID-19 crisis, we are continuing to keep you updated on important information that we believe is relevant.

We encourage you to research all your options and reach out to your account officer to discuss any issues you are facing and let us know how we can help you during these challenging times.

Financial Assistance Programs

Due to the market disruption caused by the COVID-19 virus, many stores are postponing, rejecting and even canceling orders, while others are delaying payment on existing receivables. We understand that these issues will cause cash flow problems for many of our clients.

There are federal, state and local public resources available to help businesses that are experiencing COVID-19 issues:

•  The Small Business Administration offers consulting and loan programs to help small businesses: https://www.sba.gov/page/coronavirus-covid-19-small-business-guidance-loan-resources

•  For NYC based businesses, NYC Small Business Services offer programs that include interest free loans and grants to help small businesses cover payroll and other necessary expenses: https://www1.nyc.gov/site/sbs/businesses/covid19-business-outreach.page

•  For assistance outside of New York, please check with your state and local agencies as well as local SBA offices (listed at the bottom of the SBA website provided)

Duty Extensions

US Customs and Border Protection is accepting requests for a 7-day duty payment extension. Interested parties should send requests (name of importer and IOR#) to Director Randy Mitchell at randy.mitchell@cbp.dhs.gov.

The National Customs Brokers & Forwarders Association of America (NCBFAA), an industry group serving importers and exporters, has asked Customs for a 90-day tolling or deferral period, and Customs is considering the request.

IRS Pushes Tax Date to July 15

At a press conference held late Friday, Treasury Secretary Steven Mnuchin announced that the in addition to the extension on the Federal tax payment deadline, the filing deadline has also been delayed by 90 days.

•  This postponement applies to any individuals, trusts, estates, partnerships, associations, and companies or corporations.

•  Taxpayers do not have to file Forms 4868 or 7004 for an extension.

•  There is no limitation on the amount of the payment that may be postponed.

•  No interest or penalty is due during the 90-day extension. 

•  Interest & penalties on postponed Federal income tax filings and payments will begin to accrue on July 16, 2020.

State Filings

State filing information is still being updated for all states, including New York. For further information on State filing updates, check out : https://www.aicpa.org/content/dam/aicpa/advocacy/tax/downloadabledocuments/coronavirus-state-filing-relief.pdf.

CBP CONSIDERING DUTY PAYMENT EXTENSIONS

In response to the difficulties facing American businesses due to the COVID-19 pandemic and associated control measures, Customs and Border Protection is contemplating granting relief to importers.  In consideration of requests from the National Customs Brokers and Forwarders Association Customs Committee, chaired by GEODIS’ SVP of Trade Services and Government Relations Mary Jo Muoio, along with other industry group requests, CBP is looking at ways to provide flexibility to and extensions for a wide variety of deadlines importers face with customs obligations.

Specifically, CBP is considering granting a ninety-day extension of duty payments.  At this time CBP is working to understand authorities and mechanisms which may allow this and specifics are not available. In the meantime, CBP is reviewing extraordinary requests on a case-by-case basis.  As of today, lacking specific individual permissions, duty and related obligations remain in place.  We expect more information in the near future and will alert our clients as soon as known. If you would like to seek temporary duty-payment relief from CBP, please contact us immediately.  Initially, this relief would be for importers having duty payments due in the next week; if broader CBP issued extensions are not granted, we will pursue additional case-by-case requests.

 If you have questions about your duty payments, bond obligations or challenges meeting other CBP commitments, contact your account representative at Express Trade Capital, Inc. 

CBP HOSTS UPDATE CALL ON COVID-19

CBP has initiated a series of calls informing industry groups and leadership on the impact to trade caused by the spreading COVID-19 disease. During the call, CBP confirmed that recently enacted traveler restrictions for select individuals traveling into the United States do not extend to cargo.  At this time, CBP is guided by the medical community’s finding that cargo is not a host for the virus.  As a result, there are no procedural impacts to the clearance of cargo and delays should not occur. 

Additionally, at this time, CBP’s port operations personnel have been minimally impacted; there are a few cases where officers are self-quarantined as a result of coming in contact with a person carrying or exposed to the virus.  As the fallout continues, if more staff is exposed or ill or impacted personally by school closures and the like, there could be an impact to cargo processing.  However, CBP in the ports and in mission support roles is proactively reviewing work and prioritizing in the event staff is reduced. 

Again, at this point these are planning measures similar to what CBP conducts anytime they face staffing challenges.

If you have any concerns or questions, please reach out to your EXPRESS account representative.

Important Update of Express Trade Capital’s Coronavirus Action Plan

Dear Valued Client:

The well being of our clients, employees and partners are paramount to Express Trade Capital, Inc. We wanted to share with you that we are open for business and have remote back-up plans in place should the situation require. These are very fluid and challenging times and Express Trade Capital prides itself on being a Pro-Active Leader in the Factoring, Trade Finance & Logistical arenas.

We continue to monitor the entire situation carefully and look forward to working with you regarding all of your financial needs. Our extremely talented team is dedicated to providing you the highest level of personalized service always.

If you are experiencing any issues that may impact your account, please contact us so that we can better prepare and confront potential problems proactively.

We look forward to speaking with you shortly.

Sincerely yours,

The Express Trade Capital Team

GSP up for Review

GSP up for Review

The Office of the United States Trade Representative announced on March 2, 2020, regarding products and countries eligible for preference treatment under the Generalized System of Preferences (GSP) annual review. The attached notice includes articles and countries that are under review. https://www.govinfo.gov/content/pkg/FR-2020-03-02/pdf/2020-04220.pdf

  • List I identifies articles which will be removed from eligibility due to import volumes exceeding the 2019 competitive needs limit unless successfully petitioned
  • List II identifies articles which will be granted a de minimis waiver and be eligible unless successfully petitioned
  • List III identifies articles from select beneficiary countries which may be predesignated and be eligible if successfully petitioned
  • List IV identifies articles which will lose a current de minimis waiver and lose eligibility unless successfully petitioned
  • Interested parties may also submit petitions for inclusion or exclusion of specific products and beneficiary countries.

The deadline for submissions to modify the GSP status is set for March 26, 2020. For further information as to how this will impact your import program please contact us at contact@expresstradecapital.com.