Monitoring Liquidation Dates Critical for Section 301 Exclusion Refunds, Brokerage Says

Generally, an entry is liquidated after 314 days, but Geodis customs brokers told an audience of fashion industry professionals that there have been cases in which liquidation came early, and there was not enough time left to do a protest in order to get a refund after an exclusion was granted. The brokers spoke during a webinar hosted by the U.S. Fashion Industry Association.

They advised companies to ask CBP to extend liquidation -- it can be done with just an email and an Excel spreadsheet detailing the products that entered and when they came in. After liquidation, there are 180 days to file a protest and get the refund.

Eileen Family, compliance manager for trade services at Geodis, said there have been 69 Harmonized Tariff Schedule codes granted full exclusions but about 2,000 partial exclusions. For those, the product must match the language in the exclusion exactly. Geodis warned that if your website is not consistent with how you're describing the product, you may be denied, as CBP will check the website. Also, reading the Federal Register notices carefully is important. She noted that at first, an exclusion for face masks specified “single-use,” but a few weeks later, that language was removed, which means the exclusion applies to the cloth masks “most of you are importing.”

When in doubt, they said, you should ask for a binding ruling. The majority of exclusions for textile items are set to expire in August or September, they noted. If a renewal is granted, there will be a gap between the renewal and it being programmed into ACE, said Jennifer Polidoro, senior manager for trade services, and in the case of partial exclusions, USTR has been creating a new HTS code for the renewal.

But importers can refile those entries with the new code if duties haven't yet been paid, and if they have, file a post-summary correction. One of the webinar attendees asked: How long does it take to get refunds? Polidoro said some submissions for a product that fits an exclusion have been approved within a week, but on average, it takes four to five months. Once the exclusion is confirmed, it takes 30 days for the money to arrive.