CBP Updates Trade on Changes to Entry
Liquidation Notice Process


September 2, 2016

In CSMS# 16-000787 message dated September 2, 2016, U.S. Customs and Border Protection (CBP) is updating the trade community on changes to the Liquidation Information Notice associated with the ACE Deployment, effective October 1, 2016.

In support of trade modernization and the implementation of the “Single Window” process by December 31, 2016, CBP is preparing to roll out new ACE capabilities that support the liquidation process. 

Liquidation is the process of determining the final duties, fees and in some cases, the admissibility of imported products. When “liquidation” occurs is key to importers in determining their final liabilities for imported goods and the right to challenge a decision by CBP. While liquidation normally happens within the first year following importation, there are situations where liquidation can be delayed for many years with an associated unwelcome surprise for importers in the form of increased duties.

On October 1, 2016 CBP will deploy liquidation capabilities in its ACE, at which time liquidations will no longer be processed in its legacy Automated Commercial System (ACS). An Interim Final Rule (IFR) will be published prior to October 1st announcing liquidation capabilities in ACE.

The following is a summary of the high level changes for processing liquidations in ACE:

  • New Weekly Processing: Liquidations will no longer occur on a two-week cycle. Starting October 1st, liquidations will process weekly, with entry summaries liquidating every Friday. Once an entry summary is liquidated, ACE will automatically populate a liquidation date equal to the next immediate Friday – for liquidations processed before 12pm EST, liquidations will post Friday of the same week; liquidations occurring after this timeframe will post the following Friday.
  • Electronic Bulletin, No More Paper Postings: CBP will no longer print the C16 notices for posting to the liquidation bulletin. This process will be replaced with an entirely electronic bulletin available on CBP.gov that will update every 90 minutes. The electronic bulletin provides public notice, and an ACE account will not be required to access This bulletin. Liquidations will be posted 365 days a year, including holidays. The trade will be able to search the electronic bulletin by filer or date the event occurred. Postings will be kept online for 18 months to allow time to search for a liquidation. After 18 months, a request will need to be made to CBP to view a past liquidation. For entry summaries with liquidation dates in the future, the liquidation reports will no longer display as “liquidated” and will instead display “pending” as the liquidation status.
  • Extensions and Suspensions: CBP will no longer print notifications of extension and suspension. The electronic bulletin will serve as the official notice for extensions and suspensions. Extensions and suspensions will post same day to the bulletin within 90 minutes of the extension and suspension action. Sureties and filers will continue to receive extension and suspension courtesy notices, which will be sent via ABI. Those filing in paper will not receive a courtesy notice, they will only be available to those filing electronically. If necessary, a liquidation may be extended up to three years. Reports will be available for CBP and the trade to view extension and suspension records.
  • Temporary Importations Under Bond (TIB) Extensions: TIB Extensions requested by trade will automatically be accepted in ACE, but CBP will have the ability to deny an extension as necessary. TIBs may only be extended for up to two years.
  • Deem Liquidations: For entry summaries that are deem liquidated, they will display on the electronic bulletin as “deem liquidated” for the basis of liquidation. If no action has been taken to extend or suspend, an entry summary will deem liquidate at 365 days.

If you have any questions about these or other customs matters, please contact George R. Tuttle, III at george.tuttle.iii@tuttlelaw.com or at 415-986-8780.

George R. Tuttle, III is an attorney with the Law Offices of George R. Tuttle in the San Francisco Bay Area.

The information in this article is general in nature, and is not intended to constitute legal advice or to create an attorney-client relationship with respect to any event or occurrence, and may not be considered as such.

Copyright © 2016 by Tuttle Law Offices.  

All rights reserved. Information has been obtained from sources believed to be reliable. However, because of the possibility of human or mechanical error by our offices or by others, we do not guarantee the accuracy, adequacy, or completeness of any information and are not responsible for any errors, omissions, or for the results obtained from the use of such information.

 

 

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