Details on House-Passed Customs Border Security and Trade Agencies Authorization Act

This is Part II of a multi-part series of summaries on H.R. 4418 and focuses on the bill's remaining technical amendments related to entry and protest. (See ITT's Online Archives or 07/22/04 news, 04072215, for Part I. See future issues of ITT for additional summaries on H.R. 4418.)

Extending 1514 Protest Period to 180 Days (from 90 Days)

H.R. 4418 would amend 19 USC 1514(c)(3) so that it states that a protest of a decision, order, or finding described in 19 USC 1514(a) shall be filed with CBP within 180 days after but not before:

1. "date" of liquidation or reliquidation; or
2. in circumstances where subparagraph A. is inapplicable, the date of the decision as to which protest is made.

H.R. 4418 would also amend 19 USC 1514(c)(3) to state that a protest by a surety which has an unsatisfied legal claim under its bond may be filed within 180 days from the date of mailing of notice of demand for payment against its bond.

(In both instances above, 1514(c)(3) currently provides 90 days for such protests. In addition, A. currently states "notice" of liquidation or reliquidation.)

Elimination of One Year "Clerical Error, Mistake of Fact" 1520(c) Reliquidations

H.R. 4418 would also amend 19 USC 1520 on refunds and errors by deleting paragraph (c) regarding requests to reliquidate an entry or reconciliation within one year after the date of liquidation or extraction to correct a clerical error, mistake of fact, etc.

(19 USC 1520(c) currently states that, notwithstanding a valid protest was not filed, CBP may, in accordance with prescribed regulations, reliquidate an entry or reconciliation to correct:

a clerical error, mistake of fact, or other inadvertence, whether or not resulting from or contained in electronic transmission, not amounting to an error in the construction of a law, adverse to the importer and manifest from the record or established by documentary evidence, in any entry, liquidation, or other customs transaction, when the error, mistake, or inadvertence is brought to CBP's attention within one year after the date of liquidation or exaction; or

any assessment of duty on household or personal effects in respect of which an application for refund has been filed with a designated CBP employee, within one year after the date of entry.)

"Clerical Errors, Mistakes of Fact" Would Instead be Protestable Under 1514

H.R. 4418 would amend 19 USC 1514 regarding protests in order to enlarge 19 USC 1514(a) to include clerical errors, mistakes of fact, or other inadvertences.

The bill would also make additional amendments to the text of 19 USC 1514(a) which precedes listings 1.- 7. In addition, listings 5. and 7. would be amended.

The revised text of 19 USC 1514(a) would state, in relevant part, that except as provided in certain sections of 19 USC, any clerical error, mistake of fact, or other inadvertence, whether or not resulting from or contained in an electronic transmission, adverse to the importer, in any entry, liquidation, or reliquidation, and decisions of the Customs Service, including the legality of all orders and findings entering into the same, as to -

1. the appraised value of merchandise (unchanged);
2. the classification and rate and amount of duties chargeable (unchanged);
3. all charges or exactions of whatever character within the jurisdiction of the Secretary of the Treasury (unchanged);
4. the exclusion of merchandise from entry or delivery or a demand for redelivery to customs custody under any provision of the customs laws, except a determination appealable under 19 USC 1337 (unchanged);
5. the liquidation or reliquidation of an entry, or reconciliation as to the issues contained therein, or any modification thereof, including the liquidation of an entry pursuant to either 19 USC 1500 or 1504 (changed);
6. the refusal to pay a claim for drawback (unchanged); or
7. the refusal to liquidate an entry under 19 USC 1520(d) (changed)

shall be final and conclusive upon all persons (including the U.S. and any officer thereof) unless a protest is filed in accordance with this section, or unless a civil action contesting the denial of a protest, in whole or in part, is commenced in the Court of International Trade.

Protests Could Not be Amended if Request for Accelerated Disposition Filed

H.R. 4418 would amend 19 USC 1514(c)(1) so that it states, in relevant part, that unless a request for accelerated disposition is filed under 19 USC 1515(b), a protest may be amended, under prescribed regulations, to set forth objections as to a decision or decisions described in 19 USC 1514(a) which were not the subject of the original protest, in the form and manner prescribed for a protest, any time prior to the expiration of the time in which such protest could have been filed.

(19 USC 1514(c)(1) currently makes no mention of requests for accelerated disposition of protests.)

Timeframe for Filing a Request for the Accelerated Disposition of a Protest

H.R. 4418 would amend 19 USC 1515(b) on requesting accelerated disposition of a protest so that it would state that a request for accelerated disposition of a protest filed in accordance with 19 USC 1514 may be mailed by certified or registered mail to the appropriate customs officer any time concurrent with or following the filing of such protest.

(19 USC 1515(b) currently states that such requests may be mailed any time after 90 days following the filing of such protest.)

Liquidations under 19 USC 1504 Could be Voluntarily Reliquidated by CBP

H.R. 4418 would amend 19 USC 1501 regarding voluntary reliquidations by CBP so that it also covers liquidations made in accordance with 19 USC 1504 or any reliquidation thereof.

The revised text of 19 USC 1501 would state, in relevant part, that a liquidation made in accordance with 19 USC 1500 or 1504 or any reliquidation thereof made in accordance with this section may be reliquidated in any respect by CBP on its own initiative, notwithstanding the filing of a protest, within ninety days from the date on which notice of the original liquidation is given or transmitted to the importer, his consignee or agent.

H.R. 4418, as passed by the House, available at http://frwebgate.access.gpo.gov/cgi-bin/getdoc.cgi?dbname=108_cong_bills&docid=f:h4418eh.txt.pdf,BP Note

The technical amendments relating to entry and protest summarized above appear to be substantially the same as those included in the Senate-passed version of H.R. 1047, the Miscellaneous Trade and Technical Corrections Act of 2003. (See ITT's Online Archives or 03/19/04 news, 04031910, for BP summary of the Senate-passed version of H.R. 1047.)