Suspension of Liquidation is a pause that CBP places on liquidation of an entry while a separate proceeding determines the final duty rate. Most commonly, suspension of liquidation accompanies:
- An ongoing antidumping duty (AD) investigation or administrative review
- An ongoing countervailing duty (CVD) investigation or administrative review
- A scope determination proceeding to decide whether merchandise is covered by an existing AD/CVD order
- Certain Section 301 or Section 232 exclusion process requests
- Other CBP or Commerce proceedings affecting duty calculation
Cash deposits. While liquidation is suspended, the importer must make cash deposits of estimated AD/CVD duties at the time of entry. The deposits are not refunded until the underlying proceeding concludes and Commerce instructs CBP to liquidate at a specific rate.
Liquidation instructions from Commerce. AD/CVD suspensions end when Commerce issues "liquidation instructions" to CBP, typically following an administrative review or a sunset determination. The instructions specify the final assessment rate, which may be:
- Higher than the cash deposit rate (importer owes more, plus interest)
- Lower than the cash deposit rate (importer gets a refund, plus interest)
- The same as the cash deposit rate
Statutory deadline. Once liquidation is suspended, the standard 314-day deemed liquidation clock pauses. The clock restarts upon receipt of Commerce's liquidation instructions, and CBP must act within 6 months or the entries are deemed liquidated at the cash deposit rate.
The leading case is International Trading Co. v. United States, which established the 6-month post-suspension deemed liquidation rule.