Opinion ID: 478841
Heading Depth: 2
Heading Rank: 2

Heading: Deemed Liquidation.

Text: 26 Section 1504 of 19 U.S.C. sets a limit of 1 year for liquidation (final computation of duty) of imported merchandise. The 1-year period may be extended by giving notice of such extension to the importer for any of the following reasons: 14 27 (1) information needed for the proper appraisement or classification of the merchandise is not available to the appropriate customs officer; 28 (2) liquidation is suspended as required by statute or court order; or 29 (3) the importer, consignee, or his agent requests such extension and shows good cause therefor. 30 Here, Customs sent computer-generated notices of suspension to Pagoda in July and August 1981. The Government concedes that it does not know why these notices were sent, stating only that the computer previously had been programmed to send the notices automatically. The trial court correctly held that there was no valid basis for suspension of liquidation as required by statute or court order, 15 since the countervailing duty order had been revoked and Customs had been directed to proceed with liquidation several months before the notices of suspension were sent. 31 The Government argues that the notices of suspension should be considered notices of extension, as authorized by the broader three categories of section 1504(b), and that the use of incorrect terminology was harmless error. The trial court, however, held that [n]o such notice of an extension was given to plaintiff in this case. 16 The court found that there was no evidence that any authorized official had granted an extension, and that there was no basis for extension such as a lack of information available to Customs or a request by the importer for an extension. 17 32 Since there was no extension of the period for liquidation, the merchandise imported by Pagoda was deemed liquidated 1 year after the respective entries, at the rate of duty, value, quantity, and amount of duties asserted at the time of entry by the importer. 18 The deemed liquidation occurred by operation of law prior to the February 26, 1982, liquidation asserted by Customs.