According to a recent message sent out by U.S. Customs and Border Protection (CBP), “CBP will deny requests filed under 19 U.S.C. § 1504(b)(2) for an extension of time for liquidation of entries based solely on the pending Court of International Trade (CIT) litigation challenging the lawfulness of the Section 301 duties on Chinese goods under List 3 and/or List 4A.” CBP states that the pending litigation is not sufficient to show good cause for the extension.
What This Means for Importers
For importers who requested an extension of liquidation without filing a protest on entries affected by the pending Section 301 litigation, CBP will deny these requests. If the importer filed protests regarding the lawfulness of Section 301 duties on entries affected by pending litigation, CBP will place those entries in “suspended” status under “other,” as an administrative convenience that will allow them to address liquidation once the Section 301 litigation is complete.
Companies who have requested extensions of liquidation should immediately consider filing protests. While we continue to believe that the CIT has the statutory authority to require CBP to refund all List 3 and 4A Section 301 duties if the plaintiffs win—regardless of liquidation status and time elapsed since liquidation—companies wishing to cover all the bases and minimize the risk that CBP could attempt to deny payment on entries that are more than 180 days past liquidation, should consider filing protests at this time.
Mohawk Global Trade Advisors can help you run ACE reports to capture all impacted entries and can file appropriate protests at your request. Reach out today.