CBP to deny liquidation extensions and to suspend protest processing, Section 301 litigation

Pending litigation concerns challenges to additional customs duties imposed under Section 301 on goods from China

CBP will deny requests for extensions of time for liquidation based on pending litigation

U.S. Customs and Border Protection (CBP) today issued a release announcing that it will deny requests for extensions of time for liquidation based on pending litigation before the U.S. Court of International Trade concerning challenges to additional customs duties imposed under Section 301 on goods imported from China.

The litigation is: In re Section 301 Cases, Slip Op. No. 21-81 (CIT July 6, 2021). Read the trade court’s order [PDF 652 KB] that temporarily restrains liquidation of any unliquidated entries of merchandise imported from China in the Section 301 cases which are subject to List 3 or List 4A duties.

Today’s CBP release—CSMS #450264295—states that requests for an extension of time for liquidation of entries based solely on the pending trade court litigation challenging the lawfulness of the Section 301 duties on goods from China under List 3 and/or List 4A will be denied. According to CBP, the pending litigation (or any of the cases stayed under the July 2021 lead case) is not sufficient to show good cause for the extension as required.

The CBP release also states that in an effort to facilitate administrative processing, CBP will place protests challenging the lawfulness of the Section 301 duties imposed on goods from China under List 3 and/or List 4A in a “suspended” status because CBP will not be acting on these protests at this time. The suspension of protests does not acknowledge the validity of the protests but is noted to be “merely an administrative convenience for CBP.”

Lastly, today’s CBP release regarding liquidation extensions and protest processing does not pertain to:

  • Entries filed under List 1 (subheading 9903.88.01),
  • Entries filed under List 2 (subheading 9903.88.02),
  • Submissions pertaining to exclusion requests pending with the U.S. Trade Representative
  • Submissions not contesting the validity of List 3 and/or List 4A Section 301 duties on goods from China


For more information on this topic or to learn more about KPMG’s Trade & Customs Services, contact:

Doug Zuvich
Partner and Global Practice Leader
T: 312-665-1022
E: dzuvich@kpmg.com

John L. McLoughlin
Principal and East Coast Leader
T: 267-256-2614
E: jlmcloughlin@kpmg.com

Andy Siciliano
Partner and National Practice Leader
T: 631-425-6057
E: asiciliano@kpmg.com

Steve Brotherton
Principal and Global Export and Sanctions Leader
T: 415-963-7861
E: sbrotherton@kpmg.com

Luis (Lou) Abad
Principal, Washington National Tax
T: 212-954-3094
E: labad@kpmg.com

Irina Vaysfeld
Principal
T: 212-872-2973
E: ivaysfeld@kpmg.com

Amie Ahanchian
Principal
T: 202-533-3247
E: aahanchian@kpmg.com

Christopher Young
Principal
T: 312-665-3229
E: christopheryoung@kpmg.com

Gisele Belotto
Principal
T: 305-913-2779
E: gbelotto@kpmg.com

George Zaharatos
Principal
T: 404-222-3292
E: gzaharatos@kpmg.com

Andy Doornaert
Managing Director
T: 313-230-3080
E: adoornaert@kpmg.com

Jessica Libby
Principal
T: 612-305-5533
E: jlibby@kpmg.com

 

The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organization. KPMG International Limited is a private English company limited by guarantee and does not provide services to clients. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavor to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation. For more information, contact KPMG's Federal Tax Legislative and Regulatory Services Group at: + 1 202 533 4366, 1801 K Street NW, Washington, DC 20006.