HQ 0224408 - Protest No. 2704-92-103470; Countervailing Duties; Suspension; Deemed Liquidation; 19 U.S.C. 1504(d) - United States International Trade Commision Rulings

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HQ 224408

May 13 1994

LIQ-4-02-CO:R:C:E 224408 SLR

CATEGORY: LIQUIDATION

District Director of Customs
300 South Ferry St.
Terminal Island
San Pedro, CA 90731

RE: Protest No. 2704-92-103470; Countervailing Duties; Suspension; Deemed Liquidation; 19 U.S.C. 1504(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 involves an entry of oil country tubular goods from Argentina (OCTGA) made on May 9, 1988. On September 12, 1984, the Department of Commerce ( Commerce ) issued an affirmative preliminary countervailing duty determination suspending the liquidation of all entries of OCTGA (49 FR 35823). On November 27, 1984 (49 FR 46564), Commerce published a final countervailing duty order on OCTGA. On January 9, 1987, Commerce published its final results of administrative review of OCTGA for the period January 1, 1985 through December 31, 1985. The Department determined that the subsidy rate for that period was 0.24 percent ad valorem. Thus,

Further, the Department will instruct the Customs Service to waive cash deposits of estimated countervailing duties, as provided by section 751(a)(1) of the Tariff Act, on all shipments of this merchandise entered, or withdrawn from warehouse, for consumption on or after the date of publication of this notice. This deposit waiver shall remain in effect until publication of the final results of the next administrative review.

52 FR 848. The cash deposit requirements set forth in the January 9, 1987, notice were in effect at the time of the May 9, 1988, entry.

On August 12, 1991, Commerce published the final results of its administrative review of the subject countervailing duty order, determining the total bounty or grant to be 0.93 percent ad valorem for the time period January 1, 1988 through December 31, 1988 (56 FR 38116). The results of the review indicated that Commerce would instruct the Customs Service (Customs) to assess countervailing duties on all appropriate entries.

On May 11, 1992, Commerce issued instructions through Customs Headquarters to the field offices to liquidate the OCTGA. On May 29, 1992, the instant entry was liquidated with the 0.93 percent countervailing duty rate. The protestant currently challenges this assessment. The protest is dated August 25, 1992, and thus was timely filed.

ISSUE:

Whether the subject entry was properly liquidated by Customs or deemed liquidated by operation of law pursuant to 19 U.S.C. 1504.

LAW AND ANALYSIS:

"Liquidation" of an entry of merchandise is defined as the final computation by the Customs Service of all duties (including any dumping or countervailing duties) accruing on that entry. See generally Ambassador Division of Florsheim Shoes v. United States, 748 F.2d 1560, 1562 (Fed. Cir. 1984). "Extensions" and "suspensions" of entry liquidations are covered in section 504 of the Tariff Act of 1930, as amended (19 U.S.C. 1504).

In the instant case, the liquidation of the subject entry was suspended by statute due to an affirmative countervailing duty determination. 19 U.S.C. 1673b(d)(1). The suspension was removed on May 11, 1992, when Commerce, pursuant to the August 12, 1991, final administrative review, issued its liquidation instructions to Customs. Customs received notice of the removal on the same day. The subject entry was liquidated on May 29, 1992.

Protestant cites Nunn Bush Shoe Co. v. United States, 784 F. Supp. 892 (1992). Since the liquidation suspension was lifted after the four-year anniversary of the subject entry, Canadian Fur Trappers Corp. v. United States, 12 CIT 612, 691 F. Supp. 364 (1988), aff'd, 884 F.2d 563 (Fed. Cir. 1989) applies. The May 29, 1992, liquidation was timely as it was made within the discretionary 90-day period following the lifting of the suspension.

HOLDING:

The subject entry was properly liquidated by Customs under 19 U.S.C. 1504(d). This protest should be denied in full.

In accordance with Section 3A(ll)(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, this decision should be mailed by your office, with the Customs Form 19, to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with the decision must be accomplished prior to the mailing of this decision. Sixty days from the date of the decision the Office of Regulations and Rulings will take steps to make the decision available to customs personnel via the Customs Rulings Module in ACS and the public via the Diskette Subscription Service, Lexis, Freedom of Information Act and other public access channels.

Sincerely,

John Durant, Director
Commercial Rulings Division

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