Reliquidation of Customs Entries Still Valid Even When Customs Gives Irregular Notice to Importer, Resulting in Increased Duties

Customs can merely place a paper notice in a binder in the Customhouse of the port of entry to begin the process of increasing duty rates through reliquidation, according to a recently decided Court of International Trade decision. Based on this precedent, Customs can reliquidate imported goods and assess higher duties even when it does not follow the normal procedures for giving notice. (Samuel Aaron, Inc., v. United States, CIT Slip Op. 06-126 (Aug. 17, 2006)). In this case, the importer did not see the notice in time, it missed the opportunity to protest the increased duties.

To avoid missed protest opportunities and increased duties, importers should remember:

  • Customs might not did not provide an electronic notice of reliquidation;
  • Customs might not mail an official notice of the reliquidation to the importer; and
  • Customs might not even post an official notice of liquidation on Customs Form 4333, as required by the Customs regulations.

Going forward, importers should remember that the responsibility for keeping track of reliquidations rests with them. This means:

  • Importers must devise an internal system to keep track of entries and liquidations;
  • Importers should be familiar with and use Customs’ Automated Commercial System portal; and
  • Importers should work closely with their attorneys and brokers to ensure that they file timely protests of reliquidations when appropriate.

Laura Farhang
202.857.6044
[email protected]