CBP Rules It Provided Notice of Extension of Liquidation to Penn National, Denies Protest

CBP ruled that it provided adequate notice of its extension of liquidation for entries bonded by Pennsylvania National Mutual Casualty Insurance Company that it had found subject to antidumping and countervailing duties, the agency said in a recent ruling. CBP found that there was no requirement to provide anything other than a notice beyond posting the notice on its website, and the courtesy notice provided for under the agency's regulations is not required.

Penn National had argued that it shouldn't have to pay delinquent AD/CVD on entries of steel wire hangers because the agency's suspension of liquidation without the required notice violated the agency's regulations, "resulting in actual prejudice to Penn National’s obligations on the bond" and justifying the surety's release from its contractual obligations.

First noting that it extended liquidation, rather than suspending it, CBP said that while it was required to provide Penn National with a notice of the extension, there was no regulatory requirement that CBP "provide any notice beyond the posting of the official notice on its website." While there is "aspirational language in 19 C.F.R. § 159.12(c)" that CBP will "'endeavor'" to provide an electronic courtesy notice it does not need to as part of the law, CBP said. CBP provided the insurance agency with notices of the extension on Dec. 20, 2017, CBP said.

"As explained in 19 C.F.R. § 159.9(d), such courtesy notice 'serve[s] as an informal, courtesy notice and not as a direct, formal, and decisive notice of liquidation,'" CBP said. "Failure to provide the courtesy notice is not grounds for alleging 'substantial prejudice' in cases where CBP posted the official notice of extension online." As a result, the protest was denied in full.

Penn National declined to comment.