ENT-1-03-CO:R:C:E 225750 CB
District Director
U.S. Customs Service
1 E. Bay Street
Room 104
Savannah, GA 31401
RE: Protest and Application for Further Review No. 1704-94-100180; Interest; Effective Date; North American Free Trade
Agreement (NAFTA) Implementation Act; Customs Modernization;
Public Law 103-182, Title VI, Section 642; 19 U.S.C. 1505(c)
Dear Sir/Madam:
The above-referenced protest and application for further
review was forwarded to this office for further review. We have
considered the points raised and our decision follows.
FACTS:
The subject entries were made between July 1, 1992, and June
23, 1993. The entries were reliquidated as a result of a protest
filed by the importer protesting the classification of the
merchandise. The entries were reliquidated on March 11, 1994.
Protestant contends that because the entries were reliquidated
after December 8, 1993, they should have been reliquidated to
allow the payment of interest calculated from the dates of
deposit of the excess duties.
ISSUE:
Does the newly amended 19 U.S.C. 1505(c) apply to entries
made before December 8, 1993, and reliquidated on or after that
date?
LAW AND ANALYSIS:
Initially, we note that the protest, with application for
further review, was timely filed under the statutory and
regulatory provisions for protests (see 19 U.S.C. 1514 and 19
CFR Part 174). We also note that the issue protested is a
protestable issue (19 U.S.C. 1514).
The North American Free Trade Agreement (NAFTA)
Implementation Act (Public Law 103-182; 107 Star. 2057) was
enacted on December 8, 1993. Title VI of the NAFTA Implementation
Act, titled Customs Modernization, contains various amendments to
the Customs laws and other statutes. Section 642(a) of Title VI
of the NAFTA Implementation Act (107 Star. 2205) amended 19
U.S.C. 1505 by, among other things, adding a new subsection (c)
providing as follows:
(c) Interest. -- Interest assessed due to an underpayment of
duties, fees, or interest shall accrue, at a rate determined
by the Secretary, from the date the importer of record is
required to deposit estimated duties, fees, and interest [19
U.S.C. 1505(a) requires the importer of record to deposit
estimated duties and fees at the time of making entry or at
such later time as the Secretary may prescribe by
regulation] to the date of liquidation or reliquidation of
the applicable entry or reconciliation. Interest on excess
moneys deposited shall accrue, at a rate determined by the
Secretary, from the date the importer of record deposits
estimated duties, fees, and interest to the date of
liquidation or reliquidation of the applicable entry or
reconciliation.
Section 692 of Title VI of the NAFTA Implementation Act (107 Stat.
2225) provides that "[t]his title takes effect on the date of the
enactment of this Act."
The provision under consideration added to 19 U.S.C. 1505 by
section 642(a) of Title VI of the NAFTA Implementation Act is a new
provision which allows for the payment of interest during the
period between the date that the importer is required to deposit
estimated duties, fees, and interest and the date of liquidation or
reliquidation. In Headquarters Ruling (HQ) 225576, issued November
15, 1994, it was held that the amendment to 19 U.S.C. 1505(c)
effected by section 642(a) of Title VI of the NAFTA Implementation
Act does not apply to entries made before the date of enactment,
even if the entries are liquidated or reliquidated on or after the
date of enactment. The LAW AND ANALYSIS section contained in HQ
225576 is incorporated by reference herein.
HOLDING:
Title 19, U.S.C. section 1505(c), as amended, does not apply to
the subject entries. Therefore, this protest should be DENIED in
full.
In accordance with section 3A(11 )(b) of Customs Directive 099
3550-065, dated August 4, 1993, Subject: Revised Protest Directive,
this decision should be mailed by your office to the protestant no
later than 60 days from the date of this letter. Any
reliquidation of the entry in accordance with this decision must
be accomplished prior to the mailing of the decision. Sixty days
from the date of this 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 to the public
via the Diskette Subscription Service, Freedom of Information Act
and other public access channels.
Sincerely,
John Durant, Director
Commercial Rulings Division