[Code of Federal Regulations]

[Title 19, Volume 1]

[Revised as of April 1, 2005]

From the U.S. Government Printing Office via GPO Access

[CITE: 19CFR24.3a]



[Page 372-376]

 

                        TITLE 19--CUSTOMS DUTIES

 

   CHAPTER I--BUREAU OF CUSTOMS AND BORDER PROTECTION, DEPARTMENT OF 

              HOMELAND SECURITY; 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 Sec. Sec.  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



[[Page 373]]



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 374]]





    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 375]]







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



[[Page 376]]



    (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]