HQ 0224421 - Internal Advice request concerning the validity of liquidation extension; deemed liquidated by operation of law; 19 U.S.C. 1504. - 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 > 1994 HQ Rulings > HQ 0224091 - HQ 0224514 > HQ 0224421

HQ 224421

September 8, 1993

LIQ-11-CO:R:C:E 224421 SR

CATEGORY: LIQUIDATION

District Director
Chicago, IL 60607

RE: Internal Advice request concerning the validity of liquidation extension; deemed liquidated by operation of law; 19 U.S.C. 1504.

Dear Sir:

This request for internal advice was initiated by a letter dated November 24, 1992, from Krupp Steel Products, Inc., concerning extension of liquidation.

FACTS:

This internal advice request concerns six entries of steel that were entered in July of 1992. At this time the Voluntary Restraint Arrangement (VRA) was still in effect. Under the VRA the Customs Import Specialist is responsible to check the import license before the merchandise can be released. Once the Entry Summary is filed the import specialist must prepare a very complex and time consuming worksheet for the monitoring of steel products for the Department of Commerce.

In this case, because of a backlog, the import specialists could not complete the monitoring reports for the Department of Commerce before the one year anniversary of the date of entry so a liquidation extension was filed.

ISSUE:

Whether the entries of steel products should be considered deemed liquidated by operation of law.

LAW AND ANALYSIS:

Extension of liquidation is provided for under 19 U.S.C. 1504(b) as follows:

(b) Extension.--The Secretary may extend the period in which to liquidate an entry by giving notice of such extension to the importer, his consignee, or agent in such form and
manner as the Secretary shall prescribe in regulations, if-

(1) information needed for the proper appraisement or classification of the merchandise is not available to the appropriate customs officer;
(2) liquidation is suspended as required by statute or court order; or
(3) the importer, consignee, or his agent requests such extension and shows good cause therefor.

(d) Limitation.--Any entry of merchandise not liquidated at the expiration of four years from the applicable date specified in subsection (a) of this section shall be deemed liquidated at the rate of duty, value, quantity, and amount of duty asserted at the time of entry by the importer, his consignee, or agent, unless liquidation continues to be suspended as required by statute or court order. * * *

Liquidation may be extended under 19 U.S.C. 1504(b)(1) if Customs needs more information; this includes acquiring information from other sources than the importer. For example, liquidation may be extended if Customs is waiting for an audit report (see HQ 223725), or a countervailing duty determination from the Department of Commerce (see 223922).

In this case it does not appear that further information was required. The information was in the file ready for review by Customs. Customs prepares the report for the Department of Commerce but does not receive any response back that would affect liquidation. Once Customs ascertained that the license required under the VRA was proper the merchandise should have been liquidated.

HOLDING:

The subject merchandise should have been deemed liquidated pursuant to 19 U.S.C. 1504(d) at the rate of duty asserted at the
time of entry since Customs did not have a valid reason to extend liquidation.

Sincerely,

John Durant

Previous Ruling Next Ruling