HQ 0223844 - Protest No. 1303-91-100186; Interest; 19 U.S.C. 1520(d) - United States International Trade Commision Rulings

United States International Trade Commision Rulings And Harmonized Tariff Schedule

faqs.org Rulings By Number Rulings By Category Tariff Numbers

faqs.org > Rulings and Tariffs Home > Rulings By Number > 1993 HQ Rulings > HQ 0223773 - HQ 0224015 > HQ 0223844

HQ 223844

July 28, 1992

LIQ-9/ENT-1-03-CO:R:C:E 223844 SLR

CATEGORY: LIQUIDATION ENTRY

District Director of Customs
40 South Gay Street
Baltimore, MD 21202

RE: Protest No. 1303-91-100186; Interest; 19 U.S.C. 1520(d)

Dear Sir:

The above-referenced protest was forwarded to this office for further review. We have considered the points raised and our decision follows.

FACTS:

This protest pertains to interest on refunded monies allegedly due the importer.

The importer, Hechinger Company, made thirty eight entries between January 1986 and June 1986, and the entries were liquidated "as entered" between the 21st of February and the 12th of December, 1986. On February 4, 1987, Hechinger, through its broker, Seaschott, Inc., presented Customs with a petition pursuant to 19 U.S.C. 1520(c) for the reliquidation of the entries, primarily on the basis that an incorrect value had been used for the transaction value. In March 1990, Seaschott contacted Customs about the status of the petition and was informed that neither the petition nor the supporting documents could be located. That month, Seaschott reconstructed all documents for Customs. On February 4, 1991, Customs reliquidated the entries resulting in refunds paid to the importer/petitioner.

On May 1, 1991, the subject protest was filed against the reliquidation. The protestant, Seaschott, maintains that due to Customs "mismanagement" of the 1520(c) request, interest is owed the importer on the funds held by Customs from the date of the original liquidation to the date of the reliquidation and refund. Alternatively, the protestant demands that interest be paid on the refunded amount from the date of the 1520(c) petition (February 4, 1987) to the date of the refund.

ISSUE:

Whether interest is owed on the refunded monies.

LAW AND ANALYSIS:

Section 520(d), Tariff Act of 1930, as amended (19 U.S.C. 1520(d)), provides, in part, that if a determination is made to reliquidate an entry as a result of an application for relief under 19 U.S.C. 1520(c)(1), "interest shall be owed on any amount paid as increased or additional duties under 1505(c) of this title." (Emphasis added.) Section 505(c), Tariff Act of 1930, as amended (19 U.S.C. 1505(c)), indicates that:

Duties determined to be due upon liquidation or reliquidation shall be due 15 days after the date of that liquidation or reliquidation, and unless payment of the duties is received by an appropriate customs officer within 30 days after that date, shall be considered delinquent and bear interest from the 15th day after the date of liquidation or reliquidation . . . . (Emphasis added.)

These two statutes have been interpreted as providing that interest under 1520(d) may be paid only on increased or additional duties assessed at the time of liquidation. Kalan, Inc., v. United States, 944 F.2d 847 (Fed. Cir. 1991).

No interest is due the importer in this case. Customs assessed and the importer paid no duties "increased" or "additional" at liquidation. Rather, all of the entries were liquidated as entered by the importer -- no change.

HOLDING:

Based on the foregoing, you are to deny the protest in full. A copy of this decision should be sent to the protestant along with the Form 19 Notice of Action.

Sincerely,

John Durant, Director
Commercial Rulings Division

Previous Ruling Next Ruling