[Code of Federal Regulations]
[Title 19, Volume 1]
[Revised as of April 1, 2002]
From the U.S. Government Printing Office via GPO Access
[CITE: 19CFR24.3a]

[Page 327-331]
 
                        TITLE 19--CUSTOMS DUTIES
 
  CHAPTER I--UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
 
PART 24--CUSTOMS FINANCIAL AND ACCOUNTING PROCEDURE--Table of Contents
 
Sec. 24.3a  Customs bills; interest assessment; delinquency; notice to principal and surety.

    (a) Due date of Customs bills. Customs bills for supplemental 
duties, taxes and fees(increased or additional duties, taxes, and fees 
assessed upon liquidation or reliquidation) together with interest 
thereon, reimbursable services (such as provided for in Secs. 24.16 and 
24.17), and miscellaneous amounts (bills other than duties, taxes, 
reimbursable services, liquidated damages, fines, and penalties) shall 
be due as provided for in Sec. 24.3(e).
    (b) Assessment of interest charges--(1) Bills for reimbursable 
services and miscellaneous amounts. If payment is not received by 
Customs on or before the late payment date appearing on the bill, 
interest charges will be assessed

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upon the delinquent principal amount of the bill. The late payment date 
is the date 30 calendar days after the interest computation date. The 
interest computation date is the date from which interest is calculated 
and is initially the bill date.
    (2) Interest on supplemental duties, taxes, fees, and interest--(i) 
Initial interest accrual. Except as otherwise provided in paragraphs 
(b)(2)(i)(A) through (b)(2)(i)(C) of this section, interest assessed due 
to an underpayment of duties, taxes, fees, or interest shall accrue from 
the date the importer of record is required to deposit estimated duties, 
taxes, fees, and interest to the date of liquidation or reliquidation of 
the applicable entry or reconciliation. An example follows:

    Example: Entry underpaid as determined upon liquidation
    [GRAPHIC] [TIFF OMITTED] TR20OC99.000
    

Importer owes $500 plus interest as follows:
The importer makes a $1,000 initial deposit on the required date 
(January 1) and the entry liquidates for $1,500 (December 1). Upon 
liquidation, the importer will be billed for $500 plus interest. The 
interest will accrue from the date payment was due (January 1) to date 
of liquidation (December 1).

    (A) If a refund of duties, taxes, fees, or interest was made prior 
to liquidation or reliquidation and is determined upon liquidation or 
reliquidation to be excessive, in addition to any other interest accrued 
under this paragraph (b)(2)(i), interest also shall accrue on the excess 
amount refunded from the date of the refund to the date of liquidation 
or reliquidation of the applicable entry or reconciliation. An example 
follows:

    Example: Pre-liquidation refund but entry liquidates for an increase
    [GRAPHIC] [TIFF OMITTED] TR20OC99.001
    

Importer owes $800 plus interest as follows:
The importer makes a $1,000 initial deposit on the required date 
(January 1) and receives a pre-liquidation refund of $300 (May 1) and 
the entry liquidates for $1,500 (December 1). Upon liquidation, the 
importer will be billed for $800 plus interest. The interest accrues in 
two segments: (1) On the original underpayment ($500) from the date of 
deposit (January 1) to the date of liquidation (December 1); and (2) on 
the pre-liquidation refund ($300) from the date of the refund (May 1) to 
the date of liquidation (December 1).

    (B) The following rules shall apply in the case of an additional 
deposit of duties, taxes, fees, or interest made prior to liquidation or 
reliquidation:
    (1) If the additional deposit is determined upon liquidation or 
reliquidation of the applicable entry or reconciliation to constitute 
the correct remaining balance that was required to be deposited on the 
date the deposit was due, interest shall accrue on the amount of the 
additional deposit only from the date of the initial deposit until the 
date the additional deposit was made. An example follows:


[[Page 329]]


    Example: Additional deposit made and entry liquidates for total 
amount deposited
[GRAPHIC] [TIFF OMITTED] TR20OC99.002


Importer owes interest on $200 as follows:
The importer makes a $1,000 initial deposit on the required date 
(January 1) and an additional pre-liquidation deposit of $200 (May 1) 
and the entry liquidates for $1,200 (December 1). Upon liquidation, the 
importer will be billed for interest on the original $200 underpayment 
from the date of the initial deposit (January 1) to the date of the 
additional deposit (May 1).

    (2) If the additional deposit is determined upon liquidation or 
reliquidation of the applicable entry or reconciliation to be less than 
the full balance owed on the amount initially required to be deposited, 
in addition to any other interest accrued under this paragraph 
(b)(2)(i), interest also shall accrue on the remaining unpaid balance 
from the date deposit was initially required to the date of liquidation 
or reliquidation. An example follows:

    Example: Additional deposit made and entry underpaid as determined 
upon liquidation
[GRAPHIC] [TIFF OMITTED] TR20OC99.003


Importer owes $300 plus interest as follows:
    The importer makes a $1,000 initial deposit on the required date 
(January 1) and an additional pre-liquidation deposit of $200 (May 1) 
and the entry liquidates for $1,500 (December 1). Upon liquidation, the 
importer will be billed for $300 plus interest. The interest accrues in 
two segments: (1) on the additional deposit ($200), from the date 
deposit was required (January 1) to the date of the additional deposit 
(May 1); and (2) on the remaining underpayment ($300), from the date 
deposit was required (January 1), to the date of liquidation (December 
1).

    (3) If an entry or reconciliation is determined upon liquidation or 
reliquidation to involve both an excess deposit and an excess refund 
made prior to liquidation or reliquidation, interest in each case shall 
be computed separately and the resulting amounts shall be netted for 
purposes of determining the final amount of interest to be reflected in 
the underpaid amount. An example follows:

    Example: Excess pre-liquidation deposit and excess pre-liquidation 
refund
[GRAPHIC] [TIFF OMITTED] TR20OC99.004


[[Page 330]]



Importer owes $200 plus or minus net interest as follows:
    The importer makes a $1,000 initial deposit on the required date 
(January 1) and receives a pre-liquidation refund of $300 (May 1) and 
the entry liquidates for $900 (December 1). Upon liquidation, the 
importer will be billed for $200 plus or minus net interest. The 
interest accrues in two segments: (1) Interest accrues in favor of the 
importer on the initial overpayment ($100) from the date of deposit 
(January 1) to the date of the refund (May 1); and (2) interest accrues 
in favor of the Government on the refund overpayment ($200) from the 
date of the refund (May 1) to the date of liquidation (December 1).

    (4) If the additional deposit or any portion thereof is determined 
upon liquidation or reliquidation of the applicable entry or 
reconciliation to constitute a payment in excess of the amount initially 
required to be deposited, the excess deposit shall be treated as a 
refundable amount on which interest also may be payable (see 
Sec. 24.36).
    (C) If a depository bank notifies Customs by a debit voucher that a 
Customs account is being debited due to a dishonored check or dishonored 
Automated Clearinghouse (ACH) transaction, interest shall accrue on the 
debited amount from the date of the debit voucher to either the date of 
payment of the debt represented by the debit voucher or the date of 
issuance of a bill for payment, whichever date is earlier.
    (ii) Interest on overdue bills. If duties, taxes, fees, and interest 
are not paid in full within the applicable period specified in 
Sec. 24.3(e), any unpaid balance shall be considered delinquent and 
shall bear interest until the full balance is paid.
    (c) Interest rate and applicability. (1) The percentage rate of 
interest to be charged on such bills will be based upon the semiannual 
rate(s) established under sections 6621 and 6622 of the Internal Revenue 
Code of 1954 (26 U.S.C. 6621, 6622). The current rate of interest will 
appear on the Customs bill and may be obtained from the IRS or the 
Customs Accounting Services, Indianapolis, Indiana. Customs will also 
publish the current interest rate in the Customs Bulletin and Federal 
Register on a semiannual basis.
    (2) The percentage rate of interest applied to an overdue bill will 
be adjusted as necessary to reflect any change in the annual rate of 
interest.
    (3) Interest on overdue bills will be assessed on the delinquent 
principal amount by 30-day periods. No interest charge will be assessed 
for the 30-day period in which the payment is actually received at the 
``Send Payment To'' location designated on the bill.
    (4) In the case of any late payment, the payment received will first 
be applied to the interest charge on the delinquent principal amount and 
then to payment of the delinquent principal amount.
    (5) The date to be used in crediting the payment is the date on 
which the payment is received by Customs.
    (d) Notice--(1) Principal. The principal shall be notified at the 
time of the initial billing, and every 30 days after the due date until 
the bill is paid or otherwise closed. The following elements will 
normally appear on the bill:
    (i) Principal amount due;
    (ii) Interest computation date;
    (iii) Late payment date;
    (iv) Accrual of interest charges if payment is not received by the 
late payment date;
    (v) Applicable current interest rate;
    (vi) Amount of interest owed;
    (vii) Customs office where requests for administrative adjustments 
due to billing errors may be addressed; and
    (viii) Transaction identification (e.g., entry number, reimbursable 
assignment number).
    (2) Surety. (i) Customs will report outstanding bills on a Formal 
Demand on Surety for Payment of Delinquent Amounts Due, for bills more 
than 30 days past due (approximately 60 days after bill due date), and 
every month thereafter until the bill is paid or otherwise closed. The 
following elements will normally appear on the report:
    (A) Principal amount due;
    (B) Interest computation date;
    (C) Late payment date;
    (D) Accrual of interest charges if payment is not received by the 
late payment date;
    (E) Applicable current interest rate;
    (F) Amount of interest owed;
    (G) Principal's name and address;
    (H) Customs office where requests for administrative adjustments due 
to billing errors may be addressed; and

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    (I) Transaction identification (e.g., entry number, reimbursable 
assignment number).
    (ii) Upon the written request of a surety, Customs will provide the 
surety a notice containing the billing information at the time of the 
initial billing to its principal.

[T.D. 86-178, 51 FR 34958, Oct. 1, 1986, as amended by T.D. 99-75, 64 FR 
56437, Oct. 20, 1999]