The Liquidation Process of Customs Entry Summary
What is Liquidation?
While importing goods into the United States, importers must file an entry summary and pay the estimated duties within 10 days of the release of the goods. Many importers believe after this process is completed that their customs entry is done. However, the process is not finalized until the entry has be liquidated by CBP.
Liquidation is final calculation of money owed to Customs based on the current duty rates and the value of the imported goods. At the time of entry, the importer pays the estimated duties for their goods. During liquidation, CBP examines if this estimated amount is correct based on the HTSUS codes. If CBP determines that additional duties are owed, they issue a supplemental duty bill for the remaining amount.
Since February 2018, CBP has filed and processed liquidations through ACE (no longer through the Automated Commercial System—ACS). All C16 notices are online through the Official Notice of Extension, Suspension and Liquidation.
How can there be a difference in duties paid and owed to CBP?
There are multiple reasons why the estimated amount of duties may differ from the owed amount of duties including:
Incorrect HTSUS code was used at the time of entry
Customs may have a ruling on similar merchandise that creates new changes
A court decision on a similar commodity
Errors and omissions
When does an entry liquidation occur?
Customs entries automatically liquidate (using the estimated rates from the entry of the goods) after 314 days from the date of importation into the U.S. However, Customs can extend the time of liquidation up to three times in one-year increments. Customs may extend the time if the importer requests a lower duty rate or a delay while waiting for a formal ruling, a pending ruling in court, goods are subject to antidumping or countervailing duties, or Customs requests additional information regarding the entry.
When an entry has been liquidated and no supplemental duties are owed, the entry is complete.
What do I do if I disagree with CBP’s ruling on my customs entry?
If an importer disagrees with Customs ruling of their entry, the importer has 180 days after liquidation to file a formal protest with Customs. If a protest has been filed, liquidation will not be final until the protest has been settled.
It is important to have us monitor your entry liquidations for a number of reasons:
We can review CBP’s assessments of the entry
We will know if a supplemental duty bill will be issued
We can advise an importer on filing a formal protest with Customs if needed
Importers may check the status of their entry by entering their entry number at:
If you would like Krieger Worldwide to monitor your liquidations, please contact your Krieger Worldwide representative.