HQ 223844: Protest No. 1303-91-100186; Interest; 19 U.S.C. 1520(d)

Native CBP ruling rendition. Applicability is fact-specific; modification/revocation relationships and original publisher date are retained. Publisher sentinel year0001 means unknown date, not a historical legal adoption.

                           HQ 223844

                         July 28, 1992


LIQ-9/ENT-1-03-CO:R:C:E 223844 SLR

CATEGORY: Liquidation/Entry

District Director of Customs 
40 South Gay Street
Baltimore, MD  21202

RE:  Protest No. 1303-91-100186; Interest; 19 U.S.C. 1520(d)

Dear Sir:

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

FACTS:

     This protest pertains to interest on refunded monies
allegedly due the importer.

     The importer, Hechinger Company, made thirty eight entries
between January 1986 and June 1986, and the entries were
liquidated "as entered" between the 21st of February and 
the 12th of December, 1986.  On February 4, 1987, Hechinger, 
through its broker, Seaschott, Inc., presented Customs with a
petition pursuant to 19 U.S.C. 1520(c) for the reliquidation of
the entries, primarily on the basis that an incorrect value had
been used for the transaction value.  In March 1990, Seaschott
contacted Customs about the status of the petition and was
informed that neither the petition nor the supporting documents
could be located.  That month, Seaschott reconstructed all
documents for Customs.  On February 4, 1991, Customs reliquidated
the entries resulting in refunds paid to the importer/petitioner. 

     On May 1, 1991, the subject protest was filed against the
reliquidation.  The protestant, Seaschott, maintains that due to
Customs "mismanagement" of the 1520(c) request, interest is owed 
the importer on the funds held by Customs from the date of the
original liquidation to the date of the reliquidation and refund.
Alternatively, the protestant demands that interest be paid on
the refunded amount from the date of the 1520(c) petition
(February 4, 1987) to the date of the refund.

ISSUE:

     Whether interest is owed on the refunded monies.

                              -2-

LAW AND ANALYSIS:

     Section 520(d), Tariff Act of 1930, as amended (19 U.S.C.
1520(d)), provides, in part, that if a determination is made to
reliquidate an entry as a result of an application for relief
under 19 U.S.C. 1520(c)(1), "interest shall be owed on any amount
paid as increased or additional duties under 1505(c) of this
title."  (Emphasis added.)  Section 505(c), Tariff Act of 1930,
as amended (19 U.S.C. 1505(c)), indicates that:

          Duties determined to be due upon liquidation 
          or reliquidation shall be due 15 days after 
          the date of that liquidation or reliquidation, 
          and unless payment of the duties is received 
          by an appropriate customs officer within 30 days 
          after that date, shall be considered delinquent 
          and bear interest from the 15th day after the 
          date of liquidation or reliquidation . . . .
          (Emphasis added.)

These two statutes have been interpreted as providing that
interest under 1520(d) may be paid only on increased or
additional duties assessed at the time of liquidation.  
Kalan, Inc., v. United States, 944 F.2d 847 (Fed. Cir. 1991).

     No interest is due the importer in this case.  Customs
assessed and the importer paid no duties "increased" or
"additional" at liquidation.  Rather, all of the entries 
were liquidated as entered by the importer -- no change.

HOLDING:

     Based on the foregoing, you are to deny the protest in full.
A copy of this decision should be sent to the protestant along
with the Form 19 Notice of Action.

                                Sincerely,



                                John Durant, Director
                                Commercial Rulings Division