Post-Liquidation Interest on Unpaid Duties Subject to Protest, Says CIT
Post-liquidation interest on unpaid duties is subject to the same protest procedures as the duties themselves, said the Court of International Trade on Aug. 19 as it found surety American Home Assurance Company (AHAC) liable for interest on an importer’s unpaid antidumping duties in a recovery case brought by the government. Because AHAC did not challenge denied protests related to CBP’s demands for payment, it is barred from raising legal arguments against CBP’s collection of the interest, said CIT.
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AHAC had argued that the language in the bonds it issued to the delinquent importers did not commit it to pay interest for the period between liquidation and any court judgment requiring payment and the duties. CBP had nonetheless said it would collect post-liquidation interest in the collection notices it sent to the surety. AHAC had protested those demands for payment, but did not subsequently file a court challenge once its protests were denied.
The law on protests at 19 USC 1514 says certain CBP decisions must be protested or they become “final and conclusive upon all persons.” One of those types of decisions is the “charges or exactions of whatever character within the jurisdiction of the Secretary of the Treasury,” which includes interest, said CIT. When AHAC did not challenge the denied protest of the collection notice that said it would be liable for interest, CBP’s decision to collect interest became final and unchallengeable, ruled the court.
(United States v. Am. Home Assurance Co., Slip Op. 15-88, dated 08/19/15, Judge Gordon)
(Attorneys: Beverly Farrell of plaintiff U.S. government; Herbert Shelley of defendant Steptoe & Johnson for defendant American Home Assurance Company.)