CBP Liquidation Deadline Extensions Must Have a Reason, Importer Says

CBP can't extend liquidation without giving a reason, a solar panel company argued at the Court of International Trade Dec. 14 (Greentech Energy Solutions v. U.S., CIT Consol. # 23-00118.)

Importer Greentech Energy Solutions is challenging CBP's 2022 assessment of antidumping duties on its entries of solar modules in the July 2019 through August 2022 review period. DOJ said, answering a judge's query about why the entries hadn't been liquidated after a year had passed, that a provision of liquidation law allows CBP to extend that deadline by up to three years.

Greentech argued Dec. 14 that to be covered by that provision, CBP had to have a reason to extend the deadline. It said the U.S. had not provided any evidence, in its notice to Greentech or otherwise, that it had any particular reason to do so.

“Indeed, a rule allowing CBP to extend liquidation for no reason at all would render the statute a nullity and permit CBP to extend liquidation for arbitrary and capricious reasons, which it is not permitted to do,” Greentech said.

It said CBP’s omission was prejudicial to its case, and this case should not go forward on the basis of no prejudicial error because “Greentech was prejudiced by not knowing a reason for extended dates for liquidation.”

“Here the statutory requirement for CBP to have a valid reason protects the importing public from arbitrary and capricious delays to liquidation,” it said.

CBP suspended liquidation and ordered the duties because Greentech hadn’t realized it was supposed to provide importer and exporter certifications that said the shipment had come from Vietnam, not China, Greentech says. Chinese solar modules are covered by an AD duty order, while ones from Vietnam aren't.