GlossaryEN1 min readUpdated: Jun 18, 2026
Customs Duty Deferral Program
A Customs Duty Deferral Program is an officially sanctioned procedure that allows authorized importers to postpone paying customs duties on imported goods until those goods are sold, further processed, or re-exported.
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Source: https://www.customs.gov
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A Customs Duty Deferral Program is an officially sanctioned procedure that allows authorized importers to postpone paying customs duties on imported goods until those goods are sold, further processed, or re-exported. Deferred duties fall due once the goods change their customs status or leave the customs territory. For importers holding large inventories ahead of confirmed sales, the program significantly eases cash-flow pressure. Comparable mechanisms exist across many jurisdictions under various names – bonded warehouses, inward processing relief, or free zones – and each comes with its own eligibility criteria. Approval typically requires proof of compliance history and the posting of adequate financial security; freight forwarders routinely assist clients with applications and ongoing reporting obligations.
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