CBP Memo Now Says 520(d) Claims Don't Need PSC/PEA/Protest, Etc.
U.S. Customs and Border Protection has issued an updated version of a June 23, 2011 memorandum on 520(d) post importation preference claims to newly state that a 520(d) claim does not require a Post Entry Amendment (PEA), a Post Summary Correction (PSC) or a 19 USC 1514 Protest. The new memo also states that 520(d) claims can be for either classification or value changes that bear directly on the preference claim.
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(The 19 USC 1520(d) post-importation preference claim allows a preference claim to be made within one year of the date of importation (regardless of liquidation status) if the claim was not made at time of entry summary. CBP states it is the only mechanism to make a post-importation preference claim for certain Free Trade Agreements1.)
Earlier Memo only Noted Classification, Said also Needed PEA, PSC, or Protest
In the June memo, CBP stated the memo applied to the administration of 520(d) post-importation claims with a classification change.
It also stated that the classification change should also be presented as a Post Entry Amendment (PEA) or Post Summary Correction (PSC) if the entry is unliquidated, or a 19 USC 1514 protest if the entry is liquidated, simultaneously with the 520(d) claim submission.
New Memo Says 1520(d) Claims Include HTS or Valuation Changes
The new October 31, 2011 memo states that 19 USC 1520(d) only allows changes to the entry summary that bear directly on the preference claim (whether the good would have qualified as an originating good). This includes a tariff classification or valuation change on a line in which a preference claim is being made.
For example, classification may impact whether the merchandise satisfies a specific rule of origin, while valuation may relate to the regional value content (RVC) calculation.2
Says Claims Should be Processed w/o Requiring PEA, PSC, or 1514 Protest
In the new memo, CBP states that 520(d) claims should be processed without requiring a PEA, a PSC, or a 19 USC 1514 protest.
With respect to PSCs (which are limited to the ACE Environment), CBP sources state that a PSC on a non-520(d) issue for an unliquidated entry should include language in the “PSC Filing Explanation Field” that confirms any filing of a 520(d) claim on another issue.
(In the June 2011 memo, CBP stated (and CBP sources confirmed by phone) that the 1520(d) provision does not allow for other changes and/or amendments to an entry summary -- it is limited to those changes that bear directly on the preference claim. Therefore importers and brokers must use existing regulatory provisions (e.g. PSCs, PEAs, protests, as allowed) to make non-preference corrections to an entry summary.)
Port to Review any 520(d) Claims Since June to See if Action Needed
CBP states it has issued guidance advising the ports to review decisions made per the June 23, 2011 memorandum to determine if further action is appropriate.
1CBP states that currently, these are the North American Free Trade Agreement (NAFTA), the Chile FTA (CFTA), the Oman FTA (OFTA), the Dominican Republic-Central American Free Trade Agreement (DR-CAFTA), and the Peru Trade Promotion Agreement (PTPA).
2Any valuation change in a 520(d) claim must enable the good to meet the terms of the preference program.
(See ITT's Online Archives 11062422 for summary of the June 2011 memo.)
(CSMS Message #11-000277, dated 11/03/11)