Liquidation
Also known as: Entry Liquidation, Customs Liquidation, Final Duty Assessment
Definition
Liquidation is the final step in the customs entry process where U.S. Customs and Border Protection (CBP) reviews and finalizes the duty assessment on an import shipment. It determines whether the importer owes additional duties, is due a refund, or the original calculation was correct.
What Liquidation Means
Definition
- CBP’s final determination
- Confirms or adjusts duty amount
- Closes the entry (mostly)
- Starts protest clock
Possible Outcomes
| Result | Meaning |
|---|---|
| Liquidated as entered | Original duty correct |
| Increased assessment | More duty owed |
| Decreased assessment | Refund due |
| Liquidated at a different rate | Classification changed |
Liquidation Timeline
Standard Timeline
Entry filed: Day 0
Entry summary: Day 10
Liquidation: ~Day 314 (statutory deadline: 1 year)
Protest deadline: Day 494 (180 days after liquidation)
Statutory Limits
- Must liquidate within 1 year of entry
- Can extend up to 4 years total
- Extensions require notification
- Some entries have different rules
How Liquidation Works
CBP Review Process
- Entry summary data reviewed
- Classification verified
- Value assessed
- Origin confirmed
- Final duty calculated
- Entry liquidated
What CBP Checks
- HS classification accuracy
- Value calculation
- Country of origin
- Special program eligibility
- Related party transactions
- Previous similar entries
Liquidation Results
Liquidated as Entered
- Estimated duty = final duty
- No additional action needed
- Entry is closed
- Record keeping continues
Increased Duties (Rate Advance)
Example:
Entry Summary:
- Classification: 8471.30 (0% duty)
- Value: $100,000
- Duty: $0
Liquidation:
- Classification: 8471.50 (2.6% duty)
- Value: $100,000
- Duty: $2,600
Additional owed: $2,600
Decreased Duties (Refund)
Example:
Entry Summary:
- Duty paid: $5,000
Liquidation:
- Correct duty: $4,000
Refund due: $1,000
Liquidation Notice
How You’re Notified
- CBP Bulletin Notice (weekly)
- ACE system notification
- Broker notification
- Mail (some cases)
What to Look For
- Entry number
- Liquidation date
- Duty amount
- Any changes from filed entry
Post-Liquidation Options
If You Disagree
Protest (CBP Form 19)
- Must file within 180 days of liquidation
- Challenge classification, value, or other decisions
- Formal process with response required
Prior Disclosure
- If you discover error before CBP
- Reduced penalties
- Voluntary compliance
Reliquidation
- CBP can reliquidate
- Must be within 90 days
- Usually to correct CBP error
- Not common
Suspension of Liquidation
When Liquidation Is Suspended
- Pending court cases
- AD/CVD investigations
- CBP investigation
- Quota issues
- Binding ruling requests
Effect of Suspension
- Entry stays open
- Duties may be adjusted later
- Can continue for years
- Interest may accrue
AD/CVD Liquidation
Special Rules
- Deposits at entry
- Final rates determined later
- Liquidation after administrative review
- Can take years
- Often results in additional payment or refund
Timeline Example
Entry: 2024
AD/CVD review period: 2024-2025
Final rate issued: 2026
Liquidation: 2026
Additional duty or refund: 2026
Best Practices
Before Liquidation
- Review entry accuracy
- Keep all documentation
- Monitor for CBP inquiries
- File amendments if needed
- Track deadlines
At Liquidation
- Review all liquidation notices
- Compare to entry summary
- Identify discrepancies
- Assess protest options
- Calendar protest deadline
After Liquidation
- Keep records 5 years
- Note for future imports
- Update compliance procedures
- Consider binding rulings
Liquidation Challenges
Common Issues
- Unexpected classification changes
- Value disputes
- Origin challenges
- Special program denial
- AD/CVD assessments
Resolution Options
| Issue | Action |
|---|---|
| Classification | File protest |
| Value | Provide documentation |
| Origin | Certificate of origin |
| Program denial | Appeal/protest |
| AD/CVD | Pay and challenge |
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