Newly Released CBP HQ Rulings May 16
The Customs Rulings Online Search System (CROSS) was updated May 16 with the following headquarters rulings (ruling revocations and modifications will be detailed elsewhere in a separate article as they are announced in the Customs Bulletin):
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H332125: Application for further review of Protest No. [xxxx-xx-xx7803]; [x]; reliquidation
| Ruling: CBP’s reliquidation was not timely. The protest is granted in full. |
| Issue: Was CBP’s reliquidation timely? |
| Item: On Feb. 1, 2018, the protestant entered half shafts and drive shafts claiming U.S.- Korea Free Trade Agreement preferential tariff treatment (xxx-xxxx-1194). CBP liquidated the entry with the preferential tariff treatment Feb. 25, 2018. On July 22, 2019, CBP issued a Letter of Investigation to the protestant. Subsequently, on July 10, 2020, CBP’s Trade Regulatory Audit made a demand for records to substantiate the claim of KORUS preferential tariff treatment. The July 10, 2020, request demanded entry records relevant to 30 entries, including xxx-xxxx-1194, originally due by July 28, 2020, but extended until Dec. 21, 2020. When the protestant failed to fully meet the record demand by Dec. 21, 2020, a penalty action began. On May 18, 2021, CBP sent a notice of action to notify the protestant that the merchandise didn't qualify for KORUS preferential tariff treatment and would be reliquidated. On May 21, 2021, CBP reliquidated the entry with a duty rate of 2.5%. On Nov. 15, 2021, 178 days after the reliquidation, the protestant protested on the grounds that the reliquidation was untimely and that the merchandise qualifies for KORUS preferential tariff treatment. |
| Reason: A liquidation may be reliquidated in any respect by CBP within 90 days from the date of the original liquidation. CBP’s reliquidation on May 21, 2021, 1,181 days later, was untimely. |
| Ruling Date: Feb. 9, 2024 |