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CBP Eases Rules on Post-Liquidation Preference Claims

Posted March 03, 2017

Under U.S. Customs Issues

(Sandler, Travis & Rosenberg Trade Report)

Reversing an August 2014 policy change, U.S. Customs and Border Protection is once again allowing post-liquidation claims for preferential duty treatment under certain free trade agreements and preference programs to be filed via administrative protest. In addition, such claims that were previously rejected by CBP may be resubmitted.

In an Aug. 11, 2014, guidance letter to the ports CBP stated that post-liquidation protests under 19 USC 1514 could not be used to make an initial claim under the Generalized System of Preferences, the African Growth and Opportunity Act, or the FTAs with Singapore, Australia, Israel, and Jordan (i.e., those not subject to the special rules in 19 USC 1520(d)). This change from long-standing practice was done without notice and comment and created a substantial amount of uncertainty for importers. The guidance had no effect on imports under the agreements listed in 520(d), for which post-entry claims can be filed within one year from the date of importation.

Following an August 2016 Court of International Trade decision rejecting CBP’s rationale for this change, the agency has revised its guidance... Click here to read more.

Related: Post-importation Claims for Preferential Tariff Treatment (CBP)