Liquidation Information

Liquidation is a natural element of the importing process.  It refers to the procedure in which a shipment of goods has its classification, value, duties, and taxes assessed in finality by U.S. Customs and Border Protection (CBP).  This process of liquidation is required of all goods that are brought onto United States soil.  There are only a select few exceptions:

Temporary importation

Goods being transported in-bond

Goods intended for immediate export

In general, the liquidation process occurs within a 1-year time period; however extenuating circumstances can cause the liquidation process to exceed this period.  Some of these extenuating circumstances include:

Shipments subject to Anti-dumping or Countervailing rulings

Shipments subject to FDA regulations

Request for extension for good cause by the importer (if granted)

Court ordered suspension

Because of the often lengthy process of determining a ruling in an anti-dumping or countervailing case, goods subject to these regulations can take significantly longer to liquidate.  FDA regulated goods are also at risk of having their liquidation process suspended as they can require more detailed observation by authorities.

Once liquidation has occurred, a notice will be posted in the customhouse at the port of entry in an easily-viewable place.  This posting is made available to anyone who is interested in inspecting it. The notice of liquidation in the customhouse determines the official date of liquidation. At times Customs will send a notice of liquidation on form 4333; however, an importer must keep in mind that this form is only a courtesy notice and the final liquidation date is to be determined by the official note at the customhouse. Although the end of the liquidation process implies finality, an entry can still be subject to re-liquidation.

Re-liquidation is an important concept to understand. Port directors have a broad responsibility and authority to review entries and, at times, will re-liquidate entries that have already completed the liquidation process.  A perfect example of re-liquidation of entries would be the retroactive Merchandise Processing Fee (MPF) increase that was imposed recently.  As part of this fee increase, many entries were re-liquidated using the new MPF, resulting in supplemental duty bills being assessed for the importers who brought these entries into the country.

It is vital for importers to understand the liquidation process.  More information can be gathered through CBP’s website, but as always, consult a licensed professional before making any major decisions regarding the import process.