CBP liquidation explained: the 1-year rule, extensions and the notice

What liquidation means

When goods are entered, the importer declares the classification, value and duties and usually pays the estimated duties. Liquidation is CBP's final decision on those duties. If CBP agrees, the entry liquidates as entered; if not, CBP liquidates at a different amount and bills the difference or refunds an overpayment.

An entry not liquidated within one year from the date of entry, or from the final withdrawal for warehouse entries, is deemed liquidated by operation of law at the rate, value, quantity and duty the importer of record asserted, unless the period was extended under 159.12. These rules apply to consumption entries and withdrawals made on or after 1 April 1979.

Extensions and suspension (159.12)

• CBP may extend the period by up to 1 year if it lacks information needed to appraise or classify the goods.
• The importer may ask in writing for an extension for good cause, for example when it needs more time to give CBP information or a similar question is under CBP review, before the current period expires.
• Further extensions of up to 1 year each are possible, but extensions by the Center director total no more than 3 years.
• An entry not liquidated within 4 years of entry is deemed liquidated at the declared amounts, unless liquidation is suspended by statute or court order.
• Liquidation can be suspended without the cap when a statute or court order requires it.
• Extension and suspension notices are posted on cbp.gov for at least 15 months, with courtesy notices sent electronically where possible.

The notice of liquidation

For formal entries, CBP posts notices of liquidation on www.cbp.gov, and the electronic posting is the legal evidence of liquidation; it is dated the day it is posted and stays online for at least 15 months. CBP tries to send a courtesy notice to the filer and the surety, but the courtesy notice is informal. Because the protest period of 180 days runs from the date of liquidation, importers should watch the posted notices and their ACE reports rather than wait for a courtesy notice.