Application for Further Review of Protest No. 2704-10-101575; Reliquidation; 19 U.S.C. § 1501; 19 C.F.R. § 173.3

HQ H131517 January 20, 2011 OT:RR:CTF:VS H131517 EE CATEGORY: Classification Port Director U.S. Customs and Border Protection 301 East Ocean Blvd. Long Beach, CA 90802 RE: Application for Further Review of Protest No. 2704-10-101575; Reliquidation; 19 U.S.C. § 1501; 19 C.F.R. § 173.3 Dear Port Director: This is in response to an Application for Further Review (“AFR”) of Protest No. 2704-10-101575, filed by counsel on behalf of Adleman Diamond Corporation, d.b.a. Bellarri International (hereinafter, the "protestant"), concerning the reliquidation of certain merchandise entered on May 7, 2009. FACTS: The merchandise subject to the protest at issue, fine jewelry products, were entered by the protestant’s customs broker under subheading 9801.00.10, HTSUS. The entry was liquidated by U.S. Customs and Border Protection (“CBP”) as entered on March 19, 2010. The protestant received a Notice of Action on June 10, 2010, indicating that the entry was again in liquidation cycle and that CBP reclassified the entry under subheading 7113.19.50, HTSUS. Subsequently, CBP reliquidated the entry on June 18, 2010, and the merchandise was reclassified under subheading 7113.19.50, HTSUS. Counsel for the protestant filed a timely protest on August 2, 2010, in which it challenged both the timeliness of the reliquidation and the CBP classification. ISSUE: Whether CBP’s reliquidation of the entry at issue was timely. LAW AND ANALYSIS: The statute on voluntary reliquidation, 19 U.S.C. §1501, provides CBP with the authority to reliquidate the entry. It states: A liquidation made in accordance with section 1500 or 1504 of this title or any reliquidation thereof made in accordance with this section may be reliquidated in any respect by the Customs Service, notwithstanding the filing of a protest, within ninety days from the date on which notice of the original liquidation is given or transmitted to the importer, his consignee or agent. 19 U.S.C. §1501; 19 C.F.R. § 173.3 In the instant case, the subject entry was originally liquidated as entered on March 19, 2010. CBP notified the protestant via the Automated Broker Interface on March 19, 2010. The bulletin notice of the liquidation was posted in the customhouse at the port of entry on March 19, 2010. CBP had ninety days from the date on which notice of the original liquidation was provided to the importer to voluntarily reliquidate under 19 U.S.C. § 1501. The June 18, 2010 reliquidation was ninety-one days from March 19, 2010, and is therefore untimely and voidable. The only valid liquidation was the “no-change” liquidation of March 19, 2010. Accordingly, the protest against the reliquidation of June 18, 2010 should be granted. HOLDING:  The protest is GRANTED. The reliquidation pursuant to this protest ruling should be as liquidated in the initial liquidation. In accordance with the Protest/Petition Processing Handbook (CIS HB 3500-08A, December 2007, pp. 24 and 26), you are to mail this decision, together with the CBP Form 19, to the protestant no later than sixty days from the date of this letter. Sixty days from the date of the decision Regulations and Rulings of the Office of International Trade will make the decision available to CBP personnel, and to the public on the CBP Home Page on the World Wide Web at www.cbp.gov, by means of the Freedom of Information Act, and other methods of public distribution. Sincerely, Myles B. Harmon, Director Commercial and Trade Facilitation Division