Importing into the United States - Indo-American Chamber Of ...

CLASSIFICATION AND VALUE
27. CLASSIFICATION—LIQUIDATION
CLASSIFICATION
Classification, and, when ad valorem rates
of duty are applicable, appraisement, are the
two most important factors affecting dutiable
status. Classification and valuation, whether or
not they are pertinent because an ad valorem
rate of duty applies, must be provided by commercial
importers when an entry is filed. In
addition, classifications under the statistical
suffixes of the tariff schedules must also be furnished
even though this information is not pertinent
to dutiable status. Accordingly, classification
is initially the responsibility of an importer,
customs broker or other person preparing the
entry papers. Section 637 of the Customs Modernization
Act imposes the requirement that
importers exercise reasonable care when classifying
and appraising merchandise.
Familiarity with the organization of the
Harmonized Tariff Schedule of the United
States facilitates the classification process. (See
Chapter 13 of this booklet relating to dutiable
status.) The tariff schedule is divided into various
sections and chapters dealing separately
with merchandise in broad product categories.
These categories cover animal products, vegetable
products, products of various basic
materials such as wood, textiles, plastics,
rubber, and steel and other metal products in
various stages of manufacture, for example.
Other sections encompass chemicals,
machinery and electrical equipment, and other
specified or non-enumerated products. The last
section, Section XXII, covers certain exceptions
from duty and special statutory provisions.
In Sections I through XXI, products are
classifiable (1) under items or descriptions
which name them, known as an eo nomine provision;
(2) under provisions of general description;
(3) under provisions which identify them
by component material; or (4) under provisions
which encompass merchandise in accordance
with its actual or principal use. When two or
more provisions seem to cover the same merchandise,
the prevailing provision is determined
in accordance with the legal notes and
the General Rules of Interpretation for the tariff
schedule. Also applicable are tariff classification
principles contained in administrative
precedents or in the case law of the U.S. Court
of International Trade (formerly the U.S. Customs
Court) or the U.S. Court of Appeals for
the Federal Circuit (formerly the U.S. Court of
Customs and Patent Appeals).
LIQUIDATION
Customs officers at the port of entry or
other officials acting on behalf of the port
director review selected classifications and valuations,
as well as other required import information,
for correctness or as a proper basis for
appraisement, as well as for agreement of the
submitted data with the merchandise actually
imported. The entry summary and documentation
may be accepted as submitted without any
changes. In this situation, the entry is liquidated
as entered. Liquidation is the point at
which the Customs Service’s ascertainment of
the rate and amount of duty becomes final for
most purposes. Liquidation is accomplished by
posting a notice on a public bulletin board at
the customhouse. However, an importer may
receive an advance notice on Customs Form
4333A “Courtesy Notice” stating when and in
what amount duty will be liquidated. This
form is not the liquidation, and protest rights
do not accrue until the notice is posted. Time
limits for protesting do not start until the date
of posting, and a protest cannot be filed before
liquidation is posted.
The Customs Service may determine that
an entry cannot be liquidated as entered for
one reason or another. For example, the tariff
classification may not be correct or may not be
acceptable because it is not consistent with
established and uniform classification practice.
54 U.S. CUSTOMS SERVICE