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HQ 225750

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January 18, 1995

ENT-1-03-CO:R:C:E 225750 CB

CATEGORY: ENTRY

District Director
U.S. Customs Service
1 E. Bay Street
Room 104
Savannah, GA 31401

RE: Protest and Application for Further Review No. 1704-94-100180; Interest; Effective Date; North American Free Trade Agreement (NAFTA) Implementation Act; Customs Modernization; Public Law 103-182, Title VI, Section 642; 19 U.S.C. ?1505(c)

Dear Sir/Madam:

The above-referenced protest and application for further review was forwarded to this office for further review. We have considered the points raised and our decision follows.

FACTS:

The subject entries were made between July 1, 1992, and June 23, 1993. The entries were reliquidated as a result of a protest filed by the importer protesting the classification of the merchandise. The entries were reliquidated on March 11, 1994. Protestant contends that because the entries were reliquidated after December 8, 1993, they should have been reliquidated to allow the payment of interest calculated from the dates of deposit of the excess duties.

ISSUE:

Does the newly amended 19 U.S.C. ?1505(c) apply to entries made before December 8, 1993, and reliquidated on or after that date?

LAW AND ANALYSIS:

Initially, we note that the protest, with application for further review, was timely filed under the statutory and regulatory provisions for protests (see 19 U.S.C. ?1514 and 19 CFR Part 174). We also note that the issue protested is a protestable issue (19 U.S.C. ? 1514).

The North American Free Trade Agreement (NAFTA) Implementation Act (Public Law 103-182; 107 Star. 2057) was enacted on December 8, 1993. Title VI of the NAFTA Implementation Act, titled Customs Modernization, contains various amendments to the Customs laws and other statutes. Section 642(a) of Title VI of the NAFTA Implementation Act (107 Star. 2205) amended 19 U.S.C. ?1505 by, among other things, adding a new subsection (c) providing as follows:

(c) Interest. -- Interest assessed due to an underpayment of duties, fees, or interest shall accrue, at a rate determined by the Secretary, from the date the importer of record is required to deposit estimated duties, fees, and interest [19 U.S.C. ?1505(a) requires the importer of record to deposit estimated duties and fees at the time of making entry or at such later time as the Secretary may prescribe by regulation] to the date of liquidation or reliquidation of the applicable entry or reconciliation. Interest on excess moneys deposited shall accrue, at a rate determined by the Secretary, from the date the importer of record deposits estimated duties, fees, and interest to the date of liquidation or reliquidation of the applicable entry or reconciliation.

Section 692 of Title VI of the NAFTA Implementation Act (107 Stat. 2225) provides that "[t]his title takes effect on the date of the enactment of this Act."

The provision under consideration added to 19 U.S.C. ?1505 by section 642(a) of Title VI of the NAFTA Implementation Act is a new provision which allows for the payment of interest during the period between the date that the importer is required to deposit estimated duties, fees, and interest and the date of liquidation or reliquidation. In Headquarters Ruling (HQ) 225576, issued November 15, 1994, it was held that the amendment to 19 U.S.C. ?1505(c) effected by section 642(a) of Title VI of the NAFTA Implementation Act does not apply to entries made before the date of enactment, even if the entries are liquidated or reliquidated on or after the date of enactment. The LAW AND ANALYSIS section contained in HQ 225576 is incorporated by reference herein.

HOLDING:

Title 19, U.S.C. section 1505(c), as amended, does not apply to the subject entries. Therefore, this protest should be DENIED in full.

In accordance with section 3A(11 )(b) of Customs Directive 099 3550-065, dated August 4, 1993, Subject: Revised Protest Directive, this decision should be mailed by your office to the protestant no later than 60 days from the date of this letter. Any reliquidation of the entry in accordance with this decision must be accomplished prior to the mailing of the decision. Sixty days from the date of this decision, the Office of Regulations and Rulings will take steps to make the decision available to Customs personnel via the Customs Rulings Module in ACS and to the public via the Diskette Subscription Service, Freedom of Information Act and other public access channels.

Sincerely,

John Durant, Director
Commercial Rulings Division


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