LIQ-11-CO:R:C:E 224421 SR
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
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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
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time of entry since Customs did not have a valid reason to extend
liquidation.
Sincerely,
John Durant
Director
Commercial Rulings Division