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CBP Modifies Post-Summary Corrections Test for Liquidation Extensions

Wednesday, August 14, 2019
Sandler, Travis & Rosenberg Trade Report

Effective Aug. 14, U.S. Customs and Border Protection is modifying the National Customs Automation Program test pertaining to the processing of post-summary corrections by expanding the period in which a PSC may be filed in cases where an importer requests and is granted an extension of liquidation pursuant to 19 CFR 159.12. In such instances, after an importer is granted an extension of liquidation a PSC must be transmitted up to 15 days prior to the scheduled liquidation date.

Currently, brokers can file PSCs within 300 days of the date of entry or 15 days prior to the scheduled liquidation date, whichever is earlier. Since most entries liquidate around 314 days after entry, this timeframe normally accommodates most entries that will require correcting by a PSC. However, Section 301 product exclusions are often granted more than 300 days after the filing of an entry and those exclusions are retroactive to the date of issuance of the relevant Section 301 product list. When this happens, an importer can request that CBP extend the liquidation of the entry and CBP will sometimes grant the extension. If such an extension is granted, the entry will be liquidated sometime beyond the 300-day limit to file a PSC.

In these situations, an importer qualifies for a refund of the Section 301 duty due to the USTR granting an exclusion but the broker cannot request the refund by filing a PSC because it is beyond 300 days after entry. By removing the 300-day limitation, brokers will now be able to file a PSC for a refund on an exclusion even if it is more than 300 days after entry.

For more information, please contact customs and trade consultant Tom Gould at (661) 471-2659.

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