OT:RR:CTF:EPDR H352012 SAB
Port Director
San Juan Field Office
#1 La Puntilla St.
San Juan, PR 00901
RE: Application for Further Review of Protest No. 490925100854; Able Sales Company, Inc.;
Tariff-Rate Quota
Dear Director,
This is in response to the application for further review (“AFR”) of protest no.
490925100854, received by our office on August 26, 2025. Able Sales Company, Inc. (“Able
Sales”) protests your office’s liquidation of entry no. XXX-XXXX744-5 at the over-quota rate
for raw sugar from Panama. We have considered the points raised by your office and the
protestant. Our decision is set forth below.
FACTS:
In March of 2018, Able Sales imported 299,376 kilograms of raw sugar from Panama that
was subject to a tariff-rate quota pursuant to U.S. Note 36 of Subchapter XXII, Chapter 98, of the
Harmonized Tariff Schedule of the United States (“HTSUS”) (2018). The quota, which was open
from January 1, 2018, to December 31, 2018, provided that the aggregate amount of certain
originating goods under the U.S.-Panama Trade Promotion Agreement (TPA) of Panama in the
2018 calendar year was limited to 6,420 metric tons. The quota includes raw sugar classifiable
under subheading 1701.14.50, HTSUS.
On March 1, 2018, Able Sales filed entry no. XXX-XXXX744-5. The entry was filed as a
type 02, which delineates entries that contain quota-class merchandise. The entry claimed the in-
quota duty rate of 0% under subheading 9822.09.18, HTSUS, for raw sugar classified under
subheading 1701.14.5000, HTSUSA (Annotated). Payment of estimated duties, taxes, and fees
was tendered via statement processing. The cargo arrived on March 3, 2018, and was released on
March 5, 2018.
When Able Sales filed entry no. XXX-XXXX744-5, the entry summary (U.S. Customs
Border Protection (“CBP”) Form 7501) was not accompanied by a Certificate of Quota
Eligibility (“CQE”). On June 19, 2018, due to the missing CQE, the entry summary was rejected.
On June 21, 2018, Able Sales uploaded a CQE to the Document Imaging System (“DIS”) within
CBP’s Automated Commercial Environment (“ACE”). Despite the submission of the CQE, the
entry summary remained in rejected status until January 30, 2025.
On January 30, 2025, CBP changed the entry to type 01 and removed the in-quota
HTSUS subheading, 9822.09.18, from the entry. On January 31, 2025, CBP liquidated entry no.
XXX-XXXX744-5 at the rate of 33.87 cents per kilogram in accordance with the ordinary duty
rate applicable to raw sugar classifiable under subheading 1701.14.5000, HTSUSA. On the same
day, CBP issued a bill to Able Sales for the duties, taxes, and fees owed.
On July 22, 2025, Able Sales filed protest no. 490925100854 to challenge CBP’s
liquidation of entry no. XXX-XXXX744-5 at the over-quota duty rate. Able Sales argues that the
subject entry deemed liquidated pursuant to 19 U.S.C. § 1504(a). Specifically, Able Sales asserts
that even though the entry summary was rejected, the merchandise should have been considered
entered on March 1, 2018 - the date the entry summary was filed. Able Sales concludes that
because CBP failed to liquidate within one year of the entry summary filing date, the entry had
deemed liquidated in 2019 at the rate asserted by Able Sales.
ISSUE:
Whether CBP properly liquidated the subject entry at the over-quota rate.
LAW AND ANALYSIS:
As an initial matter, we find that, pursuant to 19 U.S.C. § 1514(c)(3), this protest was
timely filed on July 21, 2025, “within 180 days from the date of liquidation.” We also find that,
pursuant to 19 U.S.C. §§ 1514(a)(2) and 1514(a)(5), a protestable issue was raised by
challenging CBP’s decision regarding “the classification and rate and amount of duties
chargeable” for the raw sugar and the timeliness of CBP’s liquidation. Finally, pursuant to 19
C.F.R. § 174.24(a), we find that further review of this protest is warranted because it alleges facts
that are inconsistent with a decision made by CBP in Headquarters Ruling Letter (“HQ”)
H326779 (Apr. 15, 2025).
Able Sales asserts that entry no.XXX-XXXX744-5 deemed liquidated because CBP
failed to liquidate within one year from the date of entry. Pursuant to 19 U.S.C. § 1504(a)(1):
Unless an entry of merchandise for consumption is extended under subsection (b)
of this section or suspended as required by statute or court order . . . an entry of
merchandise for consumption not liquidated within 1 year from —
(A) the date of entry of such merchandise . . .
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shall be deemed liquidated at the rate of duty, value, quantity, and amount of duties
asserted by the importer of record.
This statutory deemed liquidation deadline is intended to “increase certainty in the customs
process for importers, surety companies, and other third parties with a potential liability relating
to a customs transaction.” HQ 224162 (May 5, 1992) (quoting S. Rep. No. 95-788, at 832
(1978)). Accordingly, an entry which is not liquidated by CBP within a year from the date of
entry is deemed liquidated unless liquidation is suspended pursuant to statute or court order, or
CBP extends the timeframe for liquidation. We must thus determine the legal date of entry for the
quota-class merchandise to determine whether its liquidation was timely.
The time of entry for merchandise that is entered for consumption is established in
accordance with 19 C.F.R. § 141.68. Pursuant to 19 C.F.R. § 141.68(d), the time of entry for
quota-class merchandise “will be the time of presentation of the entry summary or withdrawal
for consumption in proper form, with estimated duties attached, or if the entry/entry summary
information and a valid scheduled statement date . . . have been successfully received by CBP via
the Automated Broker Interface.”
Presentation is essential for quota-class merchandise because it establishes quota priority
and quota status if made in proper form. See 19 C.F.R. § 132.11(a). Quota priority is the
precedence granted to an entry of quota-class merchandise over other entries of merchandise
subject to the same quota. 19 C.F.R. § 132.1(f). Quota status is the standing which entitles quota-
class merchandise to admission under an absolute quota, or to a reduced rate of duty under a
tariff-rate quota, or to any other quota benefit. 19 C.F.R. § 132.1(g). To prevent circumvention of
quota, importers must comply with strict presentation requirements in order to obtain quota
priority and status. See HQ H326779 (Apr. 15, 2025) (citing HQ 229188 (Mar. 4, 2002)).
A quota entry will not be deemed presented “for purposes of quota priority and . . . quota
status” if not in proper form. 19 C.F.R. § 132.11(b); see also 19 C.F.R. §§ 132.1(d); 132.11(a).
For example, presentation will not be in proper form for purposes of quota priority and status if
the merchandise is misclassified, the asserted duty is incorrect, or estimated duties are not
attached. See generally DMV USA, Inc. v. United States, 25 C.I.T. 970, 978 (2003). Quota
priority or status will also not attach to merchandise when the entry summary is presented
without any requisite certificates of eligibility. See HQ H326779; HQ H229480 (June 21, 2002).
See generally United States v. Aegis Sec. Ins. Co., 422 F. Supp. 3d 1328, 1351-1354 (Ct. Intl.
Trade 2019) (finding that an importer’s failure to provide CQEs rendered the imported
merchandise ineligible for quota treatment). Pursuant to 15 C.F.R. § 2011.103(a), “no sugar that
is the product of a foreign country may be permitted entry unless at the time of entry the person
entering such sugar presents to the appropriate customs official a valid and properly executed
certificate of quota eligibility for such sugar.” Accordingly, for certain sugar products subject to
quota, presentation of an entry summary will not be in proper form unless it is accompanied by a
valid CQE.
CBP previously addressed the significance of failing to timely file a CQE for quota-class
merchandise in HQ 229480, dated June 21, 2002. In that case, raw sugar from Colombia that was
subject to a tariff-rate quota was imported by Goya Foods of Texas (“Goya”) in November of
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2000. Looking to the 15 C.F.R. § 2011.103, CBP determined that a valid and properly executed
CQE was required in order to obtain quota status. When filing the entry summary, Goya
submitted a CQE with a date that did not cover the quota period for which the subject entry was
eligible. Id. Specifically, the CQE covered the 1998-1999 quota period instead of the 1999-2000
quota period in which the sugar was imported. Consequently, CBP liquidated Goya’s entry of
raw sugar without the benefit of quota status. Goya attempted to obtain a “corrected” CQE for
the 1999-2000 period and filed a protest in 2001 challenging CBP’s denial of quota status. CBP
held that the entry summary, as filed, was not presented in proper form because the CQE was not
validly dated and the sugar was thus not entitled to quota status. Id. CBP concluded that
“submission of an incorrectly dated certificate [properly] resulted in Custom’s denial of quota
privileges” and the entry summary was never presented in proper form to obtain quota status for
the 1999-2000 quota period. Id. Therefore, CBP affirmed liquidation of the entry at the over-
quota rate.
In this case, the raw sugar imported by Able Sales from Panama is similarly subject to a
tariff-rate quota. Specifically, the quota, which was open from January 1, 2018, to December 31,
2018, provided that the aggregate amount of certain originating goods of Panama in the 2018
calendar year was limited to 6,420 metric tons. The quota includes raw sugar classifiable under
subheading 1701.14.50, HTSUS. In addition to the general CQE requirements proffered by 15
C.F.R. Part 2011, imported merchandise under subheading 9822.09.18, HTSUS, must also meet
the CQE requirements of the United States-Panama TPA. See 15 C.F.R. § 2011.103(a); see
generally 19 C.F.R. Part 10, Subpart S. Obtaining the in-quota rate under subheading 9822.09.18,
HTSUS, is thus conditioned on presentation of an entry summary which includes a valid CQE.
Id.; see also 19 C.F.R. § 10.2004.
Here, as in HQ 229480, Able Sales initially failed to effect presentation in proper form
because the entry summary did not include a CQE. As a result, CBP rejected the entry summary
on June 18, 2018. Shortly thereafter, on June 21, 2018, Able Sales provided CBP with a CQE
that satisfied the requirements of 19 C.F.R. § 10.2004 and was therefore valid. Upon submitting a
valid CQE, Able Sales corrected the sole omission that prevented its entry summary from being
presented in proper form for purposes of quota priority and status. Pursuant to 19 C.F.R. §
141.68(d), the time of entry for entry no. XXX-XXXX744-5 is therefore June 21, 2018.
Consequently, Able Sales effected presentation in proper form in the quota period in which the
raw sugar arrived and was thus eligible to obtain quota status. We note that at the time of
presentation in proper form the quota was not filled. Although the entry was presented in proper
form on June 21, 2018, it nonetheless remained in rejected status in ACE until January of 2025.
However, CBP’s rejection of an entry summary “ha[s] no bearing on [the] time of entry.” HQ
228611 (July 31, 2001); see also HQ H333257 (May 6, 2025).
Now that we have established the time of entry as June 21, 2018, we must determine
whether entry no. XXX-XXXX744-5 was timely liquidated. The liquidation of these entries was
never suspended pursuant to statute or court order, nor did CBP extend the timeframe for
liquidation, in accordance with 19 U.S.C. § 1504(a)(1). We also note that just as CBP’s rejection
of an entry has no bearing on the time of entry, it also has no bearing on CBP’s requirement to
liquidate within one year of the date of entry. See HQ H333257. Consequently, CBP had one year
to liquidate from June 21, 2018. Failure to comply with this statutory deadline for liquidation
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resulted in the entry’s deemed liquidation “at the rate of duty, value, quantity, and amount of
duties asserted by the importer of record.” 19 U.S.C. § 1504(a)(1)(A); 19 C.F.R. § 159.11(a).
CBP thus improperly liquidated entry no. XXX-XXXX744-5 at the over-quota duty rate for raw
sugar from Panama on January 31, 2025. CBP’s liquidation in 2025 was untimely because it
occurred roughly six and a half years from the date of entry. We therefore find that entry no.
XXX-XXXX744-5 deemed liquidated at the 0% rate of duty asserted by Able Sales.
HOLDING:
Entry no. XXX-XXXX744-5 deemed liquidated at the 0% rate of duty asserted by Able
Sales. The protest should be GRANTED in full.
You are instructed to notify the Protestant of this decision no later than 60 days from the
date of this decision. Sixty days from the date of the decision, the Office of Trade, Regulations
and Rulings will make the decision available to CBP personnel and the public on the Customs
Rulings Online Search System (“CROSS”) at https://rulings.cbp.gov/, or other methods of public
distribution.
Sincerely,
Yuliya A. Gulis, Director
Commercial and Trade Facilitation Division
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