US CUSTOMS LIQUIDATION

LOS ANGELES CUSTOMS BROKERAGE CAN HELP YOU IF YOUR IN LIQUIDATION AND WE CAN HELP AVOID THE SITUATION ALL TOGETHER.

 

Liquidation is a Customs concept most importers have heard, but if they were ever called to task probably couldn’t explain it.

 

In putting this video together, I looked up Custom’s definition of liquidation.  It is as follows:

 

Liquidation means the final computation or ascertainment of the duties (…) or drawback accruing on an entry.

 

This definition has changed a bit over the years and I never really like Customs definition of liquidation, so I will use my own.

 

Liquidation occurs when Customs closes the book on a Customs entry.  They have either accepted the entry as the importer and their broker submitted it or they have made some changes prior to closing the books.  

 

If they made some changes they will probably decide you didn’t pay enough duty and so they will be sending you a bill to pay more,  plus interest. On rare occasions you will get a refund with interest because they determine you paid too much.

 

Notification of changes on entries are given by sending a Customs Form 29 or CF29, Notice of Action.

 

Liquidation is scheduled for 314 days after the date of entry, but Customs can extend liquidation if they determine more information is required for them to make their final determination on the amount of duty due.  

 

There are some situations such as an Anti Dumping or Countervailing Duty Cases that can cause affected entries to be suspended indefinitely.  Other issues where resolution will take longer than the liquidation schedule can cause liquidation to be suspended. An Importer can even request Suspension of Liquidation if they feel there are outstanding issues that should be resolved before liquidation happens.

 

As I said, Liquidation means Customs closes the books.  

 

If the Importer doesn’t agree with Customs final determination,  they can re-open the books by filing a Protest within 180 days of liquidation. This will cause the entry or a set of entries to be re examined.  

 

Customs will only re open an entry after liquidation if it is determined that fraud may have occurred on the entry.

 

As a final note, once liquidation has occurred, the obligation on the Customs Bond is terminated.  There is no more potential liability with Customs.

 

Our Video on Post Entry Formalities gives more insight on this topic.

 

If you need more information on Liquidation, please contact Los Angeles Customs Brokers.