[Title 19 CFR 159]
[Code of Federal Regulations (annual edition) - April 1, 2002 Edition]
[Title 19 - CUSTOMS DUTIES]
[Chapter I - UNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY]
[Part 159 - LIQUIDATION OF DUTIES]
[From the U.S. Government Printing Office]


19CUSTOMS DUTIES22002-04-012002-04-01falseLIQUIDATION OF DUTIES159PART 159CUSTOMS DUTIESUNITED STATES CUSTOMS SERVICE, DEPARTMENT OF THE TREASURY
PART 159--LIQUIDATION OF DUTIES--Table of Contents




Sec.
159.0  Scope.

                      Subpart A--General Provisions

159.1  Definition of liquidation.
159.2  Liquidation required.
159.3  Rounding of fractions.
159.4  Alcoholic beverages.
159.5  Cigars, cigarettes, and cigarette papers and tubes.
159.6  Difference between liquidated duties and estimated duties.
159.7  Rewarehouse entries.
159.8  Allowance for loss, injury, etc.
159.9  Notice of liquidation and date of liquidation for formal entries.
159.10  Notice of liquidation and date of liquidation for informal, mail 
          and baggage entries.
159.11  Entries liquidated by operation of law.
159.12  Extension of time for liquidation.

                  Subpart B--Weight, Gage, and Measure

159.21  Quantity upon which duties based.
159.22  Net weights and tares.

                Subpart C--Conversion of Foreign Currency

159.31  Rates to be used.
159.32  Date of exportation.
159.33  Proclaimed rate.
159.34  Certified quarterly rate.
159.35  Certified daily rate.
159.36  Multiple certified rates.
159.37  Suspension of certification of rates.
159.38  Rates for estimated duties.

                        Subpart D--Special Duties

159.41  Antidumping duties.
159.42  Discriminating duties.
159.43  Duties contingent upon foreign export duties, charges, or 
          restrictions.
159.44  Special duties on merchandise imported under agreements in 
          restraint of trade.
159.45  Additional duty for unauthentic claims of antiquity.
159.46  Marking duties.
159.47  Countervailing duties.

                  Subpart E--Suspension of Liquidation

159.51  General.
159.52  Warehouse entry not liquidated until final withdrawal.
159.53  Proof of duty-free or reduced-duty status.
159.54  Open bonds for production of documents.
159.55  Possible prohibited food, drugs, or other articles.
159.57  Merchandise affected by an American manufacturer's cause of 
          action sustained by the court.
159.58  Dumping and countervaling; action by port director.

             Subpart F--Continued Dumping and Subsidy Offset

159.61  General.
159.62  Notice of distribution.
159.63  Certifications.
159.64  Distribution of offset.

    Authority: 19 U.S.C. 66, 1500, 1504, 1624.
    Subpart C also issued under 31 U.S.C. 5151.
    Subpart F also issued under 19 U.S.C. 1675c.
    Sections 159.4, 159.5, and 159.21 also issued under 19 U.S.C. 1315;
    Section 159.6 also issued under 19 U.S.C. 1321, 1505;
    Section 159.7 also issued under 19 U.S.C. 1557;
    Section 159.22 also issued under 19 U.S.C. 1507;
    Section 159.44 also issued under 15 U.S.C. 73, 74;
    Section 159.46 also issued under 19 U.S.C. 1304;
    Section 159.55 also issued under 19 U.S.C. 1558;
    Section 159.57 also issued under 19 U.S.C. 1516.

    Source: T.D. 73-175, 38 FR 17482, July 2, 1973, unless otherwise 
noted.



Sec. 159.0  Scope.

    This part sets forth general rules for the liquidation of entries. 
Certain specific procedures affecting liquidation appear in other parts 
of this chapter; e.g., part 158 of this chapter covers allowance for 
lost or damaged merchandise.

[[Page 224]]



                      Subpart A--General Provisions



Sec. 159.1  Definition of liquidation.

    Liquidation means the final computation or ascertainment of the 
duties (not including vessel repair duties) or drawback accruing on an 
entry.

[T.D. 01-24, 66 FR 16400, Mar. 26, 2001]



Sec. 159.2  Liquidation required.

    All entries covering imported merchandise, except temporary 
importation bond entries and those for transportation in bond or for 
immediate exportation, shall be liquidated. Vessel repair entries are 
not subject to liquidation under this part (see Sec. 4.14(i)(3) of this 
chapter).

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 01-24, 66 FR 
16400, Mar. 26, 2001]



Sec. 159.3  Rounding of fractions.

    (a) Value. In the computation of duty on entries, ad valorem rates 
shall be applied to the values in even dollars, fractional parts of a 
dollar less than 50 cents being disregarded and 50 cents or more being 
considered as $1, with all merchandise in the same invoice subject to 
the same rate of duty to be treated as a unit. However, the total 
dutiable value of the invoice shall not be increased or decreased by 
more than the rounding of the total dutiable value to an even dollar. 
When necessary, fractional parts of a dollar, whether more or less than 
50 cents, shall be dropped or taken up as whole dollars in order to 
avoid such an increase or decrease. If in such cases it is necessary to 
drop fractional parts of a dollar amounting to 50 cents or more, the 
lower fractions shall be dropped, and if it is necessary to take up as 
whole dollars fractional parts less than 50 cents, the larger fractions 
shall be taken. In the case of two equal fractions, the one subject to 
the lower rate of duty shall be dropped or taken up, as the case may be. 
In determining a rate of duty dependent upon value, fractional parts of 
a dollar shall be considered.
    (b) Quantities subject to specific duty. Except in the case of 
alcoholic beverages treated under Sec. 159.4, if a rate of duty is 
specific and $1 or less per unit, fractional quantities, if less than 
one-half, shall be disregarded, and if one-half or more shall be treated 
as a whole unit. Subject to the same exception, if a specific rate is 
more than $1 per unit, duty shall be assessed upon the exact quantity 
with any fractional part expressed in the form of a decimal extended to 
two places.



Sec. 159.4  Alcoholic beverages.

    (a) Quantities subject to duties. Customs duties and internal 
revenue taxes on alcoholic beverages provided for in headings 2207 and 
2208, Harmonized Tariff Schedule of the United States (HTSUS), (19 
U.S.C. 1202), and subject to internal revenue taxes shall be collected 
only on the number of proof gallons and fractional parts thereof, 
entered or withdrawn for consumption. No internal revenue tax shall be 
collected on distilled spirits in bulk which have been transferred to 
Internal Revenue bonded premises in accordance with Sec. 141.102(b) of 
this chapter. Customs duties and internal revenue taxes on alcoholic 
beverages other than subheadings 2206.00.30 and 2206.00.90, HTSUS, and 
distilled spirits provided for in headings 2207 and 2208, shall be 
collected only on the number of wine gallons and fractional parts 
thereof, entered or withdrawn for consumption.
    (b) Computation of duties. In the computation of Customs duties on 
alcoholic beverages provided for in headings 2207 and 2208 (19 U.S.C. 
1202), which are also subject to internal revenue taxes, the methods 
prescribed for the computation of internal revenue taxes on such 
beverages shall be followed. The following methods apply to the specific 
beverages shown:
    (1) Distilled spirits. The quantity of distilled spirits imported in 
barrels, kegs, or similar containers shall be ascertained in accordance 
with the regulations of the Bureau of Alcohol, Tobacco and Firearms. 
Where distilled spirits are imported in bottles, jugs, or similar 
containers, Customs duties and taxes shall be collected on the exact 
quantity contained in each case or other outer container, fractional 
parts of a gallon being carried out to three decimal places utilizing 
the proof gallon method of computation.

[[Page 225]]

    (2) Wine. Customs duties and taxes on wines shall be on the basis of 
a wine gallon of liquid measure equivalent to 231 cubic inches and shall 
be paid proportionally on all fractional parts of a wine gallon. 
Fractions of less than one-tenth gallon shall be converted to the 
nearest one-tenth gallon, and five-hundredths gallon shall be converted 
to the next full one-tenth gallon.
    (3) Beer and similar fermented beverages. Customs duties and taxes 
on beer, ale, porter, stout, and other similar fermented beverages, 
including sake, of any name or description containing one-half of 1 
percent or more of alcohol by volume, brewed or produced from malt, 
wholly or in part, or from any substitute therefor, shall be collected 
in accordance with section 5051(a), Internal Revenue Code of 1954 (26 
U.S.C. 5051(a)).

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 78-329, 43 
FR 43455, Sept. 26, 1978; T.D. 80-271, 45 FR 75641, Nov. 17, 1980; T.D. 
89-1, 53 FR 51270, Dec. 21, 1988]



Sec. 159.5  Cigars, cigarettes, and cigarette papers and tubes.

    The internal revenue taxes imposed on cigars, cigarettes, and 
cigarette papers and tubes under section 5701 or 7652, Internal Revenue 
Code of 1954 (26 U.S.C. 5701 or 7652), are determined in accordance with 
section 5703 of that Code (26 U.S.C. 5703) at the time of removal; that 
is, on the quantity removed from Customs custody under the entry or 
withdrawal for consumption. The Customs duties, unlike those on 
alcoholic beverages, do not necessarily apply only to such quantities.



Sec. 159.6  Difference between liquidated duties and estimated duties.

    (a) Difference under $20 in original liquidation. When there is a 
net difference of less than $20 between the total amount of duties, 
fees, taxes, and interest assessed in the liquidation of any entry 
(other than an informal, mail, or baggage entry) and the total amount of 
estimated duties, fees, and taxes deposited, including any supplemental 
deposit, the difference shall be disregarded and the entry endorsed ``as 
entered.'' In the case of an informal, mail, or baggage entry, the 
amount of duties, fees, and taxes computed by a Customs officer when the 
entry is prepared by, or filed with, him shall be considered the 
liquidated assessment.
    (b) Difference under $20 in reliquidation. When there is a net 
difference of less than $20 between the total amount of duties, fees, 
taxes, and interest found due in the reliquidation of any entry and the 
total amount of duties, fees, taxes, and interest assessed in the prior 
liquidation of the entry, the difference shall be disregarded except in 
the following cases:
    (1) Reliquidation at importer's request. When reliquidation of any 
entry is made at the importer's request, such as reliquidation following 
the allowance of a protest under section 514, Tariff Act of 1930, as 
amended (19 U.S.C. 1514), or a request for correction under section 
520(c), Tariff Act of 1930, as amended (19 U.S.C. 1520(c)), any refund 
determined to be due shall be refunded even if less than $20.
    (2) Court decision. Any refund or increase determined to be due as 
the result of the reliquidation of an entry in accordance with a court 
decision and judgment order shall be refunded or collected as the case 
may be.
    (c) Difference of $20 or more collected or refunded. If there is a 
difference of $20 or more between the duties, fees, taxes, and interest 
assessed in the liquidation of an entry and the total estimated duties, 
fees, and taxes deposited, or between the total duties, fees, taxes, and 
interest assessed in the reliquidation of an entry and those assessed in 
the prior liquidation, the entry shall be endorsed to show the 
difference and bills or refund checks shall be issued.
    (d) Customs duties and fees and internal revenue taxes and interest 
netted for $20 limit. The assessments of Customs duties and fees and 
internal revenue taxes and interest shall be separately stated on the 
entry at the time of liquidation, but the amounts of any differences 
shall be netted when applying the $20 minimum for issuance of a bill or 
refund check.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 78-394, 43 
FR 49791, Oct. 25, 1978; T.D. 94-51, 59 FR 30296, June 13, 1994; 64 FR 
56440, Oct. 20, 1999]

[[Page 226]]



Sec. 159.7  Rewarehouse entries.

    The liquidation of the original warehouse entry shall be followed in 
determining the liability for duties on a rewarehouse entry, except in 
the following cases:
    (a) Merchandise excluded from liquidation of original warehouse 
entry. When any of the following types of merchandise are withdrawn from 
warehouse for transportation to another port, they shall be excluded 
from the liquidation of the original warehouse entry, and the liability 
for duties shall be determined by a liquidation of the rewarehouse entry 
made at the port where the merchandise is withdrawn for consumption or 
for exportation:
    (1) Alcoholic beverages provided for in headings 2203 through 2208, 
Harmonized Tariff Schedule of the United States (HTSUS) (19 U.S.C. 
1202), and subject to internal revenue taxes;
    (2) Cigars, cigarettes, and cigarette papers and tubes subject to 
internal revenue taxes;
    (3) Tariff-rate quota merchandise; and
    (4) Wool or hair subject to duty at a rate per clean kilogram under 
Chapter 51, HTSUS.
    (b) Reliquidation required by change in rate. When a rate of Customs 
duty or tax is changed by an act of Congress or a proclamation of the 
President, any necessary reliquidation of Customs duty or tax on 
merchandise covered by a rewarehouse entry which may be required by 
reason of the change in rate shall be made at the port where the 
merchandise is held in Customs custody on the effective date of the 
change.
    (c) Shortage, irregular delivery, nondelivery, and other cases. In 
cases involving shortage, irregular delivery, or nondelivery under the 
original warehouse withdrawal for transportation, or in other cases when 
the port director of the port where the merchandise is entered for 
rewarehouse is of the opinion that circumstances make it inadvisable to 
follow the liquidation of the original warehouse entry, he shall make an 
appropriate adjustment in the amount of duties to be assessed under the 
rewarehouse entry.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 89-1, 53 FR 
51270, Dec. 21, 1988; T.D. 90-78, 55 FR 40168, Oct. 2, 1990]



Sec. 159.8  Allowance for loss, injury, etc.

    Allowance in duties for any merchandise which is lost, stolen, 
destroyed, injured, abandoned, or short-shipped shall be made in 
accordance with the provisions of part 158 of this chapter.



Sec. 159.9  Notice of liquidation and date of liquidation for formal entries.

    (a) Bulletin notice of liquidation. Notice of liquidation of formal 
entries shall be made on a bulletin notice of liquidation, Customs Form 
4333.
    (b) Posting of bulletin notice. The bulletin notice of liquidation 
shall be posted for the information of importers in a conspicuous place 
in the customhouse at the port of entry (or Customs station, when the 
entries listed were filed at a Customs station outside the limits of a 
port of entry), or shall be lodged at some other suitable place in the 
customhouse in such a manner that it can readily be located and 
consulted by all interested persons, who shall be directed to that place 
by a notice maintained in a conspicuous place in the customhouse stating 
where notices of liquidation of entries are to be found.
    (c) Date of liquidation--(1) Generally. The bulletin notice of 
liquidation shall be dated with the date it is posted or lodged in the 
customhouse for the information of importers. This posting or lodging 
shall be deemed the legal evidence of liquidation. For electronic entry 
summaries, the date of liquidation will be the date of posting of the 
bulletin notice of liquidation. Customs will endeavor to provide the 
filer with electronic notification of this date as an informal, courtesy 
notice of liquidation.
    (2) Exception: Entries liquidated by operation of law. (i) Entries 
liquidated by operation of law at the expiration of the time limitations 
prescribed in section 504. Tariff Act of 1930, as amended (19 U.S.C. 
1504), and set out in Secs. 159.11 and 159.12, shall be deemed 
liquidated as of the date of expiration of the appropriate statutory 
period.

[[Page 227]]

    (ii) The bulletin notice of liquidation shall be posted or lodged in 
the customhouse within a reasonable period after each liquidation by 
operation of law and shall be dated as of the date of expiration of the 
statutory period.
    (iii) A protest under section 514, Tariff Act of 1930, as amended 
(19 U.S.C. 1514), and part 174 of this chapter shall be filed within 90 
days from the date the bulletin notice of liquidation of an entry by 
operation of law is posted or lodged in the customhouse.
    (d) Courtesy notice of liquidation. Customs will endeavor to provide 
importers or their agents with Customs Form 4333-A, ``Courtesy Notice,'' 
for all entries scheduled to be liquidated or deemed liquidated by 
operation of law. This notice shall serve as an informal, courtesy 
notice and not as a direct, formal and decisive notice of liquidation.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 79-221, 44 
FR 46829, Aug. 9, 1979; T.D. 90-1, 54 FR 52933, Dec. 26, 1989; T.D. 90-
92, 55 FR 49888, Dec. 3, 1990]



Sec. 159.10  Notice of liquidation and date of liquidation for informal, mail, and baggage entries.

    (a) Usual date of liquidation. Except in the cases provided for in 
paragraph (b) of this section, the effective date of liquidation for 
informal, mail, and baggage entries shall be:
    (1) The date of payment by the importer of duties due on the entry;
    (2) The date of release by Customs or the postmaster when the 
merchandise is released under such an entry free of duty; and
    (3) The date a free entry is accepted for articles released under a 
special permit for immediate delivery under part 142 of this chapter.
    (b) Date of liquidation when duty cannot be determined at time of 
entry. When the proper rate or amount of duty cannot be determined at 
the time of entry because the merchandise is subject to a tariff-rate 
quota, because of a missing document which, if for free entry, is not 
produced prior to the release of the merchandise to the importer, or 
because of any other reason, the printed notice of liquidation appearing 
on the receipt issued for any money collected on the entry shall be 
voided. When the tariff status of the merchandise either as dutiable or 
free is finally ascertained it shall be noted on the entry. The 
effective date of liquidation shall be the date of posting or lodging of 
the notice of liquidation required by paragraph (c)(3) of this section.
    (c) Notice of liquidation--(1) Dutiable entries. Where duties are 
paid on an entry in accordance with paragraph (a)(1) of this section, 
notice of liquidation is furnished by a suitable printed statement 
appearing on the receipt issued for duties collected. No other notice of 
liquidation shall be given, but notice of reliquidation of any such 
entry shall be given on Customs Form 4333 posted or lodged in the place 
and manner specified in Sec. 159.9(b).
    (2) Free entries. Notice of liquidation is furnished by release of 
the merchandise under a free entry in accordance with paragraph (a)(2) 
of this section, or by acceptance of the free entry in accordance with 
paragraph (a)(3) of this section after release under a special permit 
for immediate delivery. No further notice of the liquidation of such 
entries shall be given.
    (3) Entries where duty cannot be determined at time of entry. When 
the proper rate or amount of duty cannot be determined at the time of 
entry as set forth in paragraph (b) of this section, notice of 
liquidation shall be given on a bulletin notice of liquidation, Customs 
Form 4333, in the manner specified in Sec. 159.9 for formal entries.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 90-1, 54 FR 
52933, Dec. 26, 1989]



Sec. 159.11  Entries liquidated by operation of law.

    (a) Time limit generally. Except as provided in Sec. 159.12, an 
entry not liquidated within 1 year from the date of entry of the 
merchandise, or the date of final withdrawal of all merchandise covered 
by a warehouse entry, shall be deemed liquidated by operation of law at 
the rate of duty, value, quantity, and amount of duties asserted by the 
importer at the time of filing an entry summary for consumption in 
proper form, with estimated duties attached, or a withdrawal for 
consumption in proper form, with estimated duties attached. Notice of 
liquidation shall be

[[Page 228]]

given on the bulletin notice of liquidation, Customs Form 4333, as 
provided in Secs. 159.9 and 159.10(c)(3). Customs will endeavor to 
provide a courtesy notice of liquidation on Customs Form 4333-A in 
accordance with Sec. 159.9(d).
    (b) Applicability. The provisions of this section and Sec. 159.12 
shall apply to entries of merchandise for consumption or withdrawals of 
merchandise for consumption made on or after April 1, 1979, but shall 
not apply to drawback entries.

[T.D. 79-221, 44 FR 46829, Aug. 9, 1979, as amended by T.D. 90-1, 54 FR 
52933, Dec. 26, 1989; T.D. 01-24, 66 FR 16400, Mar. 26, 2001]



Sec. 159.12  Extension of time for liquidation.

    (a) Reasons--(1) Extension. The port director may extend the 1-year 
statutory period for liquidation for an additional period not to exceed 
1 year if:
    (i) Information needed by Customs. Information needed by Customs for 
the proper appraisement or classification of the merchandise is not 
available, or
    (ii) Importer's request. The importer requests an extension in 
writing before the statutory period expires and shows good cause why the 
extension should be granted. ``Good cause'' is demonstrated when the 
importer satisfies the port director that more time is needed to present 
to Customs information which will affect the pending action, or there is 
a similar question under review by Customs.
    (2) Suspension. The 1-year liquidation period may be suspended as 
required by statute or court order.
    (b) Notice of extension. If the port director extends the time for 
liquidation, as provided in paragraph (a)(1) of this section, he 
promptly shall notify the importer or the consignee and his agent and 
surety on Customs Form 4333-A, appropriately modified, that the time has 
been extended and the reasons for doing so.
    (c) Notice of suspension. If the liquidation of an entry is 
suspended as required by statute or court order, as provided in 
paragraph (a)(2) of this section, the port director promptly shall 
notify the importer or the consignee and his agent and surety on Customs 
Form 4333-A, appropriately modified, of the suspension.
    (d) Additional extensions--(1) Information needed by Customs. If an 
extension has been granted because Customs needs more information and 
the port director thereafter determines that more time is needed, he may 
extend the time for liquidation for an additional period not to exceed 1 
year provided he issues the notice required by paragraph (b) of this 
section before termination of the prior extension period.
    (2) At importer's request. If the statutory period has been extended 
for 1 year at the importer's request, and the importer thereafter 
determines that additional time is necessary, he may request another 
extension in writing before the original extension expires, giving 
reasons for his request. If the port director finds that good cause (as 
defined in paragraph (a)(1)(ii) of this section) exists, he shall issue 
a notice extending the time for liquidation for an additional period not 
to exceed 1 year.
    (e) Limitation on extensions. The total time for which extensions 
may be granted by the port director may not exceed 3 years.
    (f) Time limitation--(1) Generally. An entry not liquidated within 4 
years from either the date of entry, or the date of final withdrawal of 
all the merchandise covered by a warehouse entry, shall be deemed 
liquidated by operation of law at the rate of duty, value, quantity, and 
amount of duty asserted by the importer at the time of filing the entry 
summary for consumption in proper form, with estimated duties attached, 
or the withdrawal for consumption in proper form, with estimated duties 
attached, unless liquidation continues to be suspended by statute or 
court order. Customs will endeavor to provide a courtesy notice of 
liquidation on Customs Form 4333-A, in accordance with Sec. 159.9(d), in 
addition to the bulletin notice specified in Sec. 159.9(c)(2)(ii).
    (2) Suspension of liquidation by statute or court order. When 
liquidation of an entry continues to be suspended beyond the 4-year 
period specified in paragraph (f)(1) of this section due to a statute or 
court order, the entry shall be liquidated within 90 days after removal 
of the suspension.
    (g) Notice of liquidation. If an entry is liquidated after an 
extension expires or

[[Page 229]]

a suspension is removed, notice of liquidation shall be given on the 
bulletin notice of liquidation, Customs Form 4333, as provided in 
Secs. 159.9 and 159.10(c)(3). Customs will endeavor to provide a 
courtesy notice of liquidation on Customs Form 4333-A in accordance with 
Sec. 159.9(d).

[T.D. 79-221, 44 FR 46829, Aug. 9, 1979, as amended by T.D. 90-1, 54 FR 
52933, Dec. 26, 1989]



                  Subpart B--Weight, Gage, and Measure



Sec. 159.21  Quantity upon which duties based.

    Insofar as duties are based upon the quantity of any merchandise, 
such duties shall be based upon the quantity of such merchandise at the 
time of its importation, except in the following cases:
    (a) Manipulation in warehouse. If any merchandise covered by a 
warehouse entry has been cleaned, sorted, repacked, or otherwise changed 
in condition under section 562, Tariff Act of 1930, as amended (19 
U.S.C. 1562), withdrawals shall be passed and the entry liquidated on 
the basis of the weight, gauge, or measure of such merchandise in its 
manipulated condition with an appropriate notation in the duty statement 
that the duties are assessed on the basis of the manipulated condition 
of the merchandise.
    (b) Alcoholic beverages. Duties on certain alcoholic beverages are 
assessed only on the quantities entered or withdrawn for consumption 
(see Sec. 159.4).
    (c) Cigars, cigarettes, and cigarette papers and tubes. Although 
Customs duties on cigars, cigarettes, and cigarette papers and tubes are 
assessed on the quantities imported, the internal revenue taxes on such 
merchandise are assessed only on the quantities entered or withdrawn for 
consumption (see Sec. 159.5).

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 80-142, 45 
FR 36386, May 30, 1980]



Sec. 159.22  Net weights and tares.

    (a) Determination of net weight. The net weight of merchandise 
dutiable by net weight, or upon a value dependent upon net weight, shall 
be determined insofar as possible by obtaining the actual weight, or by 
deducting the actual or schedule tare from the gross weight. Actual tare 
may be determined on the basis of tests when the tares of the packages 
in a shipment are reasonably uniform.
    (b) Invoice net weight or tare. When the actual net weight or tare 
cannot reasonably be determined and no schedule tare is applicable, 
liquidation may be made on the basis of the invoice net weight or tare.
    (c) Schedule tare. The following tares, which, from experience, have 
proved to be the average for certain classes of merchandise shall be 
known as schedule tares and shall be applied, except as provided in 
paragraph (d) of this section:

    Apple boxes. 2.984 kilograms per box. This schedule tare includes 
the paper wrappers, if any, on the apples.
    China clay in so-called half-ton casks: 26.856 kilograms per cask.
    Figs in skeleton cases: Actual tare for outer containers plus 13 
percent of the gross weight of the inside wooden boxes and figs.
    Fresh tomatoes: 113 grams per 100 paper wrappings.
    Lemons and oranges: 283 grams per box and 142 grams per half box for 
paper wrappings, and actual tare for outer containers.
    Ocher, dry, in casks: Eight percent of the gross weight.
    Ocher, in oil, in casks: Twelve percent of the gross weight.

    Pimientos in tins imported from Spain: The following schedule 
drained weight shall be used as the Customs dutiable weight in the 
liquidation of entries, the difference between the weight of the new 
contents of pimientos in tins and such drained weight being the 
allowance made in liquidation for tare for water:

------------------------------------------------------------------------
                Size can                          Drained weight
------------------------------------------------------------------------
3 kilo.................................  13.6 kilograms-case of 6 tins.
794 grams..............................  16.7 kilograms-case of 24 tins.
425 grams..............................  8.0 kilograms-case of 24 tins.
198 grams..............................  3.9 kilograms-case of 24 tins.
113 grams..............................  2.4 kilograms-case of 24 tins.
------------------------------------------------------------------------

    Tobacco, leaf not stemmed: 5.9 kilograms per bale: Sumatra: actual 
tare for outside coverings, plus 1.9 kilograms for the inside matting 
and, if a certificate is attached to the invoice certifying that the 
bales contain paper

[[Page 230]]

wrapping and specifying whether light or heavy paper has been used, 
either 113 grams or 227 grams for the paper wrapping according to the 
thickness of paper used.
    (d) Actual tare. In the following circumstances, the actual tare 
shall be ascertained and in so doing the weigher shall empty and weigh 
as many casks, boxes, and other coverings as he may deem necessary:
    (1) If the importer is not satisfied with the invoice tare or with 
the schedule tare;
    (2) If the port director is of the opinion that the invoice or 
schedule tare does not correctly represent the tare of the merchandise; 
or
    (3) If the weigher has reason to believe that the invoice or 
schedule tare is greater than the real tare.
    (e) Estimated tare. When it is impracticable to ascertain the actual 
tare, the weigher shall state in his report what, in his judgment, 
constitutes a fair tare allowance.
    (f) Weight for value purposes. In determining the total dutiable 
value of merchandise which is subject to ad valorem duty and appraised 
on the basis of weight, liquidation shall be made on the same basis as 
appraisement. For example, if appraisement is made on the basis of gross 
weight, the unit value shall be multiplied by the total gross weight in 
computing the total value even though net weight may be used for other 
purposes in liquidation, such as in determining total specific duties.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 89-1, 53 FR 
51270, Dec. 21, 1988]



                Subpart C--Conversion of Foreign Currency



Sec. 159.31  Rates to be used.

    Except as otherwise specified in this subpart, no rate or rates of 
exchange shall be used to convert foreign currency for Customs purposes 
other than a proclaimed rate or certified rate or rates.



Sec. 159.32  Date of exportation.

    The date of exportation for currency conversion shall be fixed in 
accordance with Sec. 152.1(c) of this chapter.



Sec. 159.33  Proclaimed rate.

    If a rate of exchange has been proclaimed by the Secretary of the 
Treasury in accordance with 31 U.S.C. 5151(b) for the currency involved, 
such proclaimed rate shall be used unless it varies by 5 percent or more 
from the certified daily rate for the date of exportation as set forth 
in Sec. 159.35. In determining the percentage of variation between the 
proclaimed rate and the certified rate, the difference between the two 
rates shall be divided by the certified rate.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 97-82, 62 FR 
51771, Oct. 3, 1997]



Sec. 159.34  Certified quarterly rate.

    (a) Countries for which quarterly rate is certified. For the 
currency of each of the following foreign countries, there will be 
published in the Customs Bulletin, for the quarter beginning January 1, 
and for each quarter thereafter, the rate or rates first certified by 
the Federal Reserve Bank of New York for such foreign currency for a day 
in that quarter:

Australia, Austria, Belgium, Brazil, Canada, Denmark, Finland, France, 
Germany, Hong Kong, India, Iran, Ireland, Italy, Japan, Malaysia, 
Mexico, Netherlands, New Zealand, Norway, People's Republic of China, 
Philippines, Portugal, Republic of South Africa, Singapore, Spain, Sri 
Lanka (Ceylon), Sweden, Switzerland, Thailand, United Kingdom, 
Venezuela.

    (b) When certified quarterly rate is used. The certified quarterly 
rate established under paragraph (a) of this section shall be used for 
Customs purposes for any date of exportation within the quarter, except 
in the following cases:
    (1) Proclaimed rate. If a rate has been proclaimed by the Secretary 
of the Treasury under Sec. 159.33 which does not vary by 5 percent or 
more from the appropriate certified daily rate, notice of such variance 
shall be published in the Customs Bulletin and the proclaimed

[[Page 231]]

rate shall be used for Customs purposes in connection with merchandise 
exported on such date.
    (2) Certified daily rate. If the certified daily rate for the date 
of exportation varies by 5 percent or more from the certified quarterly 
rate, notice of such variation and the rate or rates certified for such 
day shall be published in the Customs Bulletin, and such certified daily 
rate shall be used for Customs purposes in connection with merchandise 
exported on such day.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 81-117, 46 
FR 24944, May 4, 1981]



Sec. 159.35  Certified daily rate.

    The daily buying rate of foreign currency which is determined by the 
Federal Reserve Bank of New York and certified to the Secretary of the 
Treasury in accordance with 31 U.S.C. 5151(e) shall be used for the 
conversion of foreign currency whenever a proclaimed rate or certified 
quarterly rate is not applicable under the provisions of Secs. 159.33 
and 159.34. If the date of exportation is one on which banks are 
generally closed in New York City, then the certified daily rate for the 
last preceding business day shall be considered the certified daily rate 
for the day of exportation.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 97-82, 62 FR 
51771, Oct. 3, 1997]



Sec. 159.36  Multiple certified rates.

    The following procedures shall apply when the Federal Reserve Bank 
of New York certifies two or more rates of exchange (e.g., official and 
free) for a foreign currency:
    (a) Rates to be published. When the Federal Reserve Bank of New York 
certifies two or more rates of exchange for the currency of any country, 
those rates will be published in the Customs Bulletin.
    (b) Laws of country of exportation followed. When multiple rates 
have been certified for a foreign currency, the rate to be used for 
Customs purposes shall be the type of certified rate which the port 
director is satisfied, from information in his own files, information 
obtained and presented to him by the importer, or information obtained 
from other sources, is uniformly applicable under the laws and 
regulations of the country of exportation to the particular class of 
merchandise on the date of exportation. In cases where two or more types 
of certified rates are uniformly applicable on a percentage bases, each 
type of certified rate shall be used for the percentage of value to 
which it is applicable. The percentages used shall be those which 
reflect realistically the percentage for which each type of rate is 
uniformly applicable under the laws and regulations of the country of 
exportation on the date of exportation.
    (c) Procedure when multiple certified rates not uniformly 
applicable. If the port director has credible information that a type of 
rate or combination of types of rates which would otherwise be 
applicable under paragraph (b) of this section were not required or 
permitted, as the case may be, under the laws and regulations of the 
country of exportation to be used uniformly during any period in 
connection with the payment for all merchandise of the class involved, 
he shall immediately submit a detailed report to the Commissioner of 
Customs, and shall suspend appraisement and liquidation as to all 
merchandise of the class involved exported to the United States during 
the period involved, until instructions are received from the 
Commissioner of Customs.
    (d) Rate for merchandise different from rate for costs. If the port 
director has credible information that a type of rate or combination of 
types of rates not applicable to payment for the merchandise was 
required or permitted in payment of costs, charges, or expenses, the 
currency conversions for the exchange covering payment for the 
merchandise and for the exchange covering such costs, charges, or 
expenses shall be calculated separately. In deducting nondutiable costs, 
charges, or expenses, the foreign exchange shall be at the rate or rates 
actually used in payment of such costs, charges, or expenses, whether or 
not certified in accordance with Sec. 159.34 or Sec. 159.35. If the 
costs, charges or expenses are dutiable, they shall be calculated 
according to the rules set forth in this subpart. In

[[Page 232]]

the event that any type of rate uniformly applicable to payment of such 
dutiable costs, charges, or expenses for merchandise of the class 
involved was a type of rate not certified in accordance with Sec. 159.34 
or Sec. 159.35, the port director shall immediately submit a detailed 
report to the Commissioner of Customs, and shall suspend appraisement 
and liquidation as to all merchandise of the class involved exported to 
the United States during the period involved, until instructions are 
received from the Commissioner.



Sec. 159.37  Suspension of certification of rates.

    Whenever the Federal Reserve Bank of New York advises that its 
certification of rates for a currency is being suspended pending 
determination of the question whether it will certify multiple rates for 
that currency, the following procedures shall apply:
    (a) Notification of suspension. Customs field officers will be 
informed when certification of a currency is being suspended. Currency 
information received from the Federal Reserve Bank, or otherwise 
available, which might be helpful in calculating estimated duties during 
the period of suspension will be furnished to the Customs field 
officers.
    (b) Suspension of liquidation. In any case where for the purposes of 
the assessment and collection of duties it is necessary to determine the 
proper rate or rates for a currency during the period when it has been 
suspended from certification, appraisement and liquidation shall be 
suspended until resumption of certification.
    (c) Resumption of certification. When certification is resumed by 
the Federal Reserve Bank, the procedures in Sec. 159.36 shall apply.



Sec. 159.38  Rates for estimated duties.

    For purposes of calculating estimated duties, the port director 
shall use the rate or rates appearing to be applicable under the 
instructions in this subpart to the merchandise involved. When it is not 
yet known what certified rate or rates are applicable or no rate has 
been certified, the port director shall take into account all the 
information in his possession and shall use the highest rate or 
combination of rates (i.e., the rate or combination of rates showing the 
highest amount of United States money), certified or uncertified as the 
case may be, which could be applicable.



                        Subpart D--Special Duties



Sec. 159.41  Antidumping duties.

    Antidumping duties shall be assessed in accordance with part 353, 
chapter III of this title.

[T.D. 80-271, 45 FR 75641, Nov. 17, 1980]



Sec. 159.42  Discriminating duties.

    The discriminating duties provided for in subsection 1 of paragraph 
J, section IV, Tariff Act of 1913, as amended by the Act of March 4, 
1915 (19 U.S.C. 128, 131), and the discriminating duties and penalties 
provided for in section 338, Tariff Act of 1930 (19 U.S.C. 1338), shall 
be imposed only in pursuance of specific instructions from the 
Commissioner of Customs.



Sec. 159.43  Duties contingent upon foreign export duties, charges, or restrictions.

    U.S. Note 1 to Section X, Harmonized Tariff Schedule of the United 
States (19 U.S.C. 1202), provides for the imposition under certain 
conditions of additional duties on merchandise covered thereby. The 
assessment of these additional duties is dependent upon action by the 
President, and notice of such action, if taken, will be published in the 
Customs Bulletin.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 89-1, 53 FR 
51270, Dec. 21, 1988; T.D. 97-82, 62 FR 51771, Oct. 3, 1997]



Sec. 159.44  Special duties on merchandise imported under agreements in restraint of trade.

    Whenever it appears that imported articles may be subject to the 
special duties provided for in section 802, Act of September 8, 1916 (15 
U.S.C. 73), the port director shall report the matter to the 
Commissioner of Customs and await instructions with respect to the 
imposition of such duties.

[[Page 233]]



Sec. 159.45  Additional duty for unauthentic claims of antiquity.

    When additional duty is imposed in accordance with Sec. 10.53 of 
this chapter for an unauthentic claim of antiquity, such duty shall be 
assessed in addition to any other duty imposed on the merchandise by 
law.



Sec. 159.46  Marking duties.

    (a) Based on dutiable value. The marking duty prescribed by section 
304(f), Tariff Act of 1930, as amended (19 U.S.C. 1304(f)), shall be 
assessed upon the dutiable value as defined in section 503, Tariff Act 
of 1930, as amended (19 U.S.C. 1503).
    (b) Suspension of liquidation. The liquidation of entries shall not 
be suspended merely because the merchandise covered thereby is not 
legally marked, but, upon special application by the importer, the 
liquidation may be deferred for a reasonable time to permit the marking, 
destruction, or exportation of the merchandise.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 90-51, 55 FR 
28191, July 10, 1990]



Sec. 159.47  Countervailing duties.

    Countervailing duties shall be assessed in accordance with part 353, 
chapter III, of this title.

[T.D. 80-271, 45 FR 75641, Nov. 17, 1980]



                  Subpart E--Suspension of Liquidation



Sec. 159.51  General.

    Liquidation of entries shall be suspended only when provided by law 
or regulation, or when directed by the Commissioner of Customs. 
Liquidation of entries shall not be suspended simply because issues 
involved therein may be before the Customs Court in pending litigation, 
since the importer may seek relief by protesting the entries after 
liquidation.



Sec. 159.52  Warehouse entry not liquidated until final withdrawal.

    Liquidation of a warehouse or rewarehouse entry shall be suspended 
until all merchandise covered by the entry has been accounted for within 
the bonded period by withdrawal, abandonment, or destruction, or until 
the bonded period has expired if the merchandise has not been so 
accounted for before that time.



Sec. 159.53  Proof of duty-free or reduced-duty status.

    Various provisions in part 10 of this chapter provide for suspending 
liquidation of entries covering certain merchandise entered at a 
conditionally free or conditionally reduced rate of duty, pending 
production of required proof. Upon production of the required proof, or 
upon failure to produce the proof within the required time, the entries 
shall be liquidated accordingly.



Sec. 159.54  Open bonds for production of documents.

    The liquidation of entries on which bonds are open for the 
production of documents affecting the rate of duty shall be suspended 
pending the performance or nonperformance under the bond, unless 
production of the document is waived in accordance with Sec. 141.92 of 
this chapter.



Sec. 159.55  Possible prohibited food, drugs, or other articles.

    (a) Suspension of liquidation. The liquidation of each entry 
covering merchandise the subject of Sec. 12.1 of this chapter (which 
pertains to certain foods, drugs, cosmetics, economic poisons, hazardous 
substances, dangerous caustic or corrosive substances, and related 
items) shall be suspended until it is determined whether admission of 
the merchandise into the United States is permitted under the law.
    (b) Allowance for exportation or destruction. In any case where the 
admission of such merchandise into the United States is refused and the 
merchandise is exported under Customs supervision in accordance with 
Sec. 158.45(b) of this chapter, or destroyed under Customs supervision 
in accordance with Sec. 158.41 of this chapter, the merchandise is 
exempt from duty and any duties collected thereon shall be refunded.

[[Page 234]]



Sec. 159.57  Merchandise affected by an American manufacturer's cause of action sustained by the court.

    Liquidation of entries for merchandise of the character covered by a 
decision of the Secretary of the Treasury published in accordance with 
Sec. 175.24 of this chapter, entered or withdrawn for consumption after 
the date of publication of a decision of the U.S. Court of International 
Trade sustaining in whole or in part the cause of action of an American 
manufacturer, producer, or wholesaler, shall be suspended until final 
disposition is made of the cause of action. Upon final disposition, such 
entries shall be liquidated, or, if necessary, reliquidated in 
accordance with the final judicial decision.

[T.D. 73-175, 38 FR 17482, July 2, 1973, as amended by T.D. 85-90, 50 FR 
21430, May 24, 1985]



Sec. 159.58  Dumping and countervailing duties; action by port director.

    (a) Antidumping matters. Upon receipt of notification from the 
Commissioner, each port director shall suspend liquidation on 
merchandise entered, or withdrawn from warehouse, for consumption, on or 
after the date of publication of the ``Notice of Preliminary Affirmative 
Antidumping Determination,'' ``Notice of Final Affirmative Antidumping 
Determination'' or ``Notice of Violation of Agreement'' as provided by 
part 353, chapter III, of this title. Each port director shall 
immediately notify the importer, consignee, or agent of each entry of 
merchandise in question with respect to which liquidation is suspended. 
The notice shall indicate the relevant ascertained and determined or 
estimated antidumping duty.
    (b) Countervailing matters. Upon receipt of notification from the 
Commissioner, each port director shall suspend liquidation on 
merchandise entered, or withdrawn from warehouse, for consumption, on or 
after the date of publication of the ``Notice of Preliminary Affirmative 
Countervailing Duty Determination,'' ``Notice of Final Affirmative 
Countervailing Duty Determination'' or ``Notice of Violation of 
Agreement,'' as provided by part 355, Chapter III, of this title. Each 
port director shall immediately notify the importer, consignee, or agent 
of each entry of merchandise in question with respect to which 
liquidation is suspended. The notice shall indicate the relevant 
ascertained and determined or estimated countervailing duty.

[T.D. 80-271, 45 FR 75642, Nov. 17, 1980]



             Subpart F--Continued Dumping and Subsidy Offset

    Source: 66 FR 48552, Sept. 21, 2001, unless otherwise noted.



Sec. 159.61  General.

    (a) Continued dumping and subsidy offset. Under section 754 of the 
Tariff Act of 1930, as amended by Public Law 106-387, 114 Stat. 1549 (19 
U.S.C. 1675c), known as the Continued Dumping and Subsidy Offset Act of 
2000, assessed duties received on or after October 1, 2000 under a 
countervailing duty order, an antidumping duty order, or a finding under 
the Antidumping Act of 1921, will be distributed, as provided under this 
subpart, to affected domestic producers for certain qualifying 
expenditures that these affected domestic producers incur after the 
issuance of such an antidumping duty order or finding, or countervailing 
duty order. This distribution is called the continued dumping and 
subsidy offset.
    (b) Affected domestic producer--(1) General rule. Except as provided 
in paragraph (b)(2) of this section, an ``affected domestic producer'' 
under paragraph (a) of this section means any manufacturer, producer, 
farmer, rancher or worker representative (including any association of 
such persons) that remains in operation continuing to produce the 
product covered by the antidumping duty order or finding or 
countervailing duty order, and that was a petitioner or an interested 
party that supported a petition concerning an antidumping duty order, a 
finding under the Antidumping Act of 1921, or a countervailing duty 
order that was entered. It is the responsibility of the U.S. 
International Trade Commission (USITC) to ascertain and timely forward 
to Customs a list of the domestic producers potentially considered 
``affected domestic producers'' eligible to receive a distribution in 
connection

[[Page 235]]

with each order or finding. In addition to the potential ``affected 
domestic producers'' set forth on the USITC list, the following parties 
also are potential ``affected domestic producers'':
    (i) Successor company. In the case of a company that has succeeded 
to the operations of a predecessor company that appeared on the USITC 
list, the successor company may file a certification to claim an offset 
as an affected domestic producer on behalf of the predecessor company. 
In its certification, the company must name the predecessor company to 
which it has succeeded and it must describe in detail the duly 
authorized succession by which it is entitled to file the certification.
    (ii) A member company of an association. A member company of an 
association appearing on the USITC list for an order or finding may file 
a certification to claim an offset as an affected domestic producer, 
even though the member company does not itself appear on the USITC list, 
provided that the company also meets the other requirements of the 
statute. In its certification, the company must name the association of 
which it is a member and the company must specifically establish that it 
was a member of the association at the time the association filed the 
petition with the USITC.
    (2) Exceptions. A party who is named on the USITC list is not an 
``affected domestic producer'' under the following circumstances:
    (i) Product no longer produced. A company, business or person that 
has ceased production of the product covered by the antidumping duty 
order or finding, or countervailing duty order, i.e., did not 
manufacture that product at all during the fiscal year that is the 
subject of the disbursement, is not an affected domestic producer under 
this section.
    (ii) Acquisition by related company--(A) Related company defined. A 
company, business or person is not an affected domestic producer if that 
company, business, or person has been acquired by another company or 
business that is related to a company that opposed the antidumping or 
countervailing duty investigation that led to the order or finding. For 
purposes of this paragraph, a company, business or person is related to 
another company, business or person if:
    (1) The company, business or person directly or indirectly controls 
or is controlled by the other company, business or person;
    (2) A third party directly or indirectly controls both companies, 
businesses or persons; or
    (3) Both companies, businesses or persons directly or indirectly 
control a third party and there is reason to believe that the 
relationship causes the first company, business or person to act 
differently than a nonrelated party.
    (B) Control of one party by another. For purposes of paragraphs 
(b)(2)(ii)(A)(1) through (b)(2)(ii)(A)(3) of this section, one party 
would be considered to directly or indirectly control another party if 
the party was legally or operationally in a position to exercise 
restraint or direction over the other party.
    (c) Qualifying expenditures. Qualifying expenditures which may be 
offset by a distribution of assessed antidumping and countervailing 
duties must fall within the categories described in paragraphs (c)(1) 
through (c)(10) of this section. These expenditures must be incurred 
after the issuance, and prior to the termination, of the antidumping 
duty order or finding or countervailing duty order under which the 
distribution is sought. Further, these expenditures must be related to 
the production of the same product that is the subject of the related 
order or finding, with the exception of expenses incurred by 
associations which must relate to a specific case.
    (1) Manufacturing facilities;
    (2) Equipment;
    (3) Research and development;
    (4) Personnel training;
    (5) Acquisition of technology;
    (6) Health care benefits for employees paid for by the employer;
    (7) Pension benefits for employees paid for by the employer;
    (8) Environmental equipment, training, or technology;
    (9) Acquisition of raw materials and other inputs; and
    (10) Working capital or other funds needed to maintain production.

[[Page 236]]



Sec. 159.62  Notice of distribution.

    (a) Publication of notice. At least 90 days before the end of a 
fiscal year, Customs will publish in the Federal Register a notice of 
intention to distribute assessed duties received as the continued 
dumping and subsidy offset for that fiscal year. The notice will include 
the list of domestic producers, based upon the list supplied by the 
USITC (see Sec. 159.61(b)(1)), that would be potentially eligible to 
receive the distribution.
    (b) Content of notice. The notice of intention to distribute the 
offset will also contain the following:
    (1) The case name and number of the particular order or finding 
concerned, together with the dollar amount contained in the special 
account for that order or finding as of June 1 of the subject fiscal 
year (see Sec. 159.64(a)(1)); and
    (2) The instructions for filing the certification under Sec. 159.63 
in order to claim a distribution.



Sec. 159.63  Certifications.

    (a) Requirement and purpose for certification. In order to obtain a 
distribution of the offset, each affected domestic producer must submit 
a certification, in triplicate, or electronically as authorized by 
Customs, to the Assistant Commissioner, Office of Regulations and 
Rulings, Headquarters, or designee, that must be received within 60 days 
after the date of publication of the notice in the Federal Register, 
indicating that the affected domestic producer desires to receive a 
distribution. The certification must enumerate the qualifying 
expenditures incurred by the domestic producer since the issuance of an 
order or finding for which a distribution has not previously been made, 
and it must demonstrate that the domestic producer is eligible to 
receive a distribution as an affected domestic producer.
    (b) Content of certification. While there is no established format 
for a certification, the certification must identify the date of the 
Federal Register notice under which it is submitted, and the case name 
and the number of the particular order or finding cited in the Federal 
Register notice. The certification must be executed and dated by a party 
legally authorized to bind the domestic producer. The certification must 
also state that the information contained in the certification is true 
and accurate to the best of the certifier's knowledge and belief under 
penalty of law, and that the domestic producer has records to support 
the qualifying expenditures being claimed.
    (1) Identifying information for domestic producer. The certification 
must include the following identifying information related to the 
domestic producer:
    (i) The name of the domestic producer and any name qualifier, if 
applicable (for example, any other name under which the domestic 
producer does business or is also known);
    (ii) The address of the domestic producer (if a post office box, the 
secondary street address must also be included);
    (iii) The Internal Revenue Service (IRS) number (with suffix) of the 
domestic producer, employer identification number, or social security 
number, as applicable;
    (iv) The specific business organization of the domestic producer 
(corporation, partnership, sole proprietorship); and
    (v) The name(s) of any individual(s) designated by the domestic 
producer as the contact person(s) concerning the certification, together 
with the phone number(s) and/or facsimile transmission number(s) and 
electronic mail (email) address(es) for the person(s).
    (2) Amount of claim. In calculating the amount of the distribution 
being claimed as an offset, the certification must enumerate the 
following:
    (i) The total amount of qualifying expenditures currently and 
previously certified by the domestic producer, and the amount certified 
by category(see Sec. 159.61(c)(1) through (c)(10));
    (ii) The total amount of those expenditures which have been the 
subject of any prior distribution under section 754, Tariff Act of 1930, 
as amended (19 U.S.C. 1675c); and
    (iii) The net amount for new and remaining qualifying expenditures 
being claimed in the current certification (the total amount currently 
and previously certified as noted in paragraph (b)(2)(i) of this section 
minus the total

[[Page 237]]

amount the subject of any prior distribution as noted in paragraph 
(b)(2)(ii) of this section).
    (3) Statement of eligibility to receive distribution. The 
certification must contain a statement that the domestic producer 
desires to receive a distribution and is eligible to receive the 
distribution as an affected domestic producer (see Sec. 159.61(b)(1) and 
(b)(2)).
    (i) Amount certified for payment. The affected domestic producer 
must affirm that the net amount certified for distribution does not 
encompass any qualifying expenditures for which distribution has 
previously been made (see paragraphs (b)(2)(ii) and (b)(2)(iii) of this 
section).
    (ii) Same qualifying expenditures included on more than one 
certification. Where the domestic producer is listed as an affected 
domestic producer on more than one order or finding covering the same 
product and files a separate certification for each order or finding 
using the same qualifying expenditures as the basis for distribution in 
each case, each certification must list all the other orders or findings 
where the producer is claiming the same qualifying expenditures.
    (iii) Continued production of product covered by order or finding; 
acquisition by related company. The statement must include information 
as to whether the domestic producer remains in operation and continues 
to produce the product covered by the particular order or finding under 
which the distribution is sought (see Sec. 159.61(b)(2)(i)). In 
addition, the domestic producer must state whether it has been acquired 
by a company or business that is related to a company, within the 
meaning of Sec. 159.61(b)(2)(ii)(A)(1) through (3), that opposed the 
antidumping or countervailing duty investigation that resulted in the 
order or finding under which the distribution is sought.
    (c) Review and correction of certification. A certification that is 
submitted in response to a notice of distribution and received within 60 
days after the date of publication of the notice in the Federal Register 
may be reviewed before acceptance to ensure that all informational 
requirements are complied with and that any amounts set forth in the 
certification for current and prior qualifying expenditures, including 
the amount claimed for distribution, appear to be correct (see paragraph 
(b)(2) of this section). A certification that is found to be materially 
incorrect or incomplete will be returned to the domestic producer within 
15 days after the close of the 60-day filing period. Within 10 days of 
the date that Customs returns a certification as being materially 
incorrect or incomplete, Customs must receive a corrected certification 
from the affected domestic producer. Customs will make every effort to 
assist companies to perfect their certifications and will not return 
claims for minor errors or omissions. However, it remains the sole 
responsibility of the domestic producer to ensure that the certification 
is correct, complete and satisfactory so as to demonstrate the 
entitlement of the domestic producer to the distribution requested. 
Failure to ensure that the certification is correct, complete and 
satisfactory as provided in this paragraph will result in the domestic 
producer not receiving a distribution.
    (d) Verification of certification; supporting records. 
Certifications are subject to verification. Parties, therefore, are 
required to maintain the accounting records used in developing their 
claims, for a period of five years after the filing of the 
certification. The records supporting certifications must be those that 
are normally kept in the ordinary course of business (see 
Sec. 163.1(a)(1) and (a)(2)(vi) of this chapter). Parties must be able 
to demonstrate that their records specifically support each qualifying 
expenditure enumerated in a certification. In addition, the claimant 
must be able to support how qualifying expenditures are determined to be 
related to the production of the product covered by the order or 
finding.
    (e) Disclosure of information in certifications; acceptance by 
producer. The name of the affected domestic producer, the total dollar 
amount claimed by that party on the certification, as well as the total 
dollar amount that Customs actually disburses to that company as an 
offset, will be available for disclosure to the public (see 
Sec. 159.64(g)(1)). The submission of the certification will be 
construed as an

[[Page 238]]

understanding and acceptance on the part of the domestic producer that 
this information will be disclosed to the public. Alternatively, a 
statement in a certification that this information is proprietary and 
exempt from disclosure will result in Customs rejection of the 
certification.



Sec. 159.64  Distribution of offset.

    (a) The creation of Special Accounts and Clearing Accounts--(1) 
Special Accounts. As directed in the legislation (19 U.S.C. 1675c(e)), 
Customs will establish Special Accounts for each antidumping duty order 
or finding or countervailing duty order, into which funds will be 
transferred as set out in paragraph (b) of this section. All 
distributions to affected domestic producers will be made from the 
Special Accounts.
    (2) Clearing Accounts. In order to properly manage and account for 
dumping and subsidy offsets, as well as any requisite refunds to 
importers, Customs will also establish Clearing Accounts. All estimated 
antidumping and countervailing duties received pursuant to an 
antidumping or countervailing order or finding in effect on January 1, 
1999, or thereafter, will be deposited into a Clearing Account.
    (b) Distribution of assessed duties received from the Special 
Accounts; refunds resulting from reliquidation or court action; and 
overpayments to affected domestic producers.
    (1) Distribution of assessed duties received from the Special 
Accounts.
    (i) No later than 60 days after the end of a fiscal year, Customs 
will distribute the assessed duties transferred from the Clearing 
Accounts and received into the Special Accounts. The amount distributed 
shall be referred to as the dumping and subsidy offset;
    (ii) Transfers from the Clearing Accounts to the Special Accounts 
will be made by Customs throughout the fiscal year. Transfers will occur 
between a Clearing Account and a Special Fund Account when an entry upon 
which antidumping or countervailing duties are owed is properly 
liquidated pursuant to an order, finding or receipt of liquidation 
instructions;
    (iii) The amount transferred at liquidation to the Special Account 
will be dependent upon the amount actually collected on the entry and in 
the Clearing Account. Following liquidation, additional transfers will 
be made on the liquidated entry to the corresponding Special Account, as 
additional antidumping or countervailing duties are collected.
    (2) Refunds resulting from reliquidation or court action. If any of 
the underlying entries composing a prior distribution should reliquidate 
for a refund, such refund will be recovered from the corresponding 
Special Account. Similarly, refunds to importers resulting from any 
court action involving those entries will also be recovered from the 
corresponding Special Account. Refunds to importers will not be delayed 
pending the recovery of overpayments from domestic producers as set out 
in paragraph (b)(3) of this section.
    (3) Overpayments to affected domestic producers. Overpayments to 
affected domestic producers resulting from subsequent reliquidations 
and/or court actions and determined by Customs to be not otherwise 
recoverable from the corresponding Special Account as set out in 
paragraph (b)(2) of this section will be collected from the affected 
domestic producers. The amount of each affected domestic producer's bill 
will be directly proportional to the total dumping and subsidy offset 
amounts that the affected domestic producer previously received under 
the related Special Account. All available collection methods will be 
used by Customs to collect outstanding bills, including but not limited 
to, administrative offset. Interest at the same rate set out at 
Sec. 24.3a(c) of this chapter will begin to accrue on unpaid bills 30 
days from the bill date.
    (c) Payment of certified claims. (1) If the total amount of the 
certified net claims filed by affected domestic producers does not 
exceed the amount of the offset available for distribution in the 
corresponding Special Account, the certified net claim for each affected 
domestic producer will be paid in full.
    (2) If the certified net claims exceed the dumping and subsidy 
offset amount available in the corresponding Special Account, such 
offset will be made on a pro rata basis based on each affected

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domestic producer's total certified claim.
    (3) In any case where the distribution is not for the entire 
certified qualifying expenditure submitted by an affected domestic 
producer, and if the affected domestic producer believes that the 
reduction was the result of clerical error or mistake by Customs, it 
must file a request for reconsideration within 30 calendar days to the 
address given in the notification. After considering the matter, the 
Customs Service will notify the party requesting reconsideration of its 
decision. However, any adjustments will be made only from funds 
remaining in the account for that case in the current or future fiscal 
years, and will be paid prior to any future distributions.
    (d) Final distribution and termination of the Special Account. (1) A 
Special Account will be terminated and a final distribution will occur 
when:
    (i) The order or finding with respect to which the account was 
established has terminated; and
    (ii) All entries relating to the order or finding are liquidated, 
all outstanding amounts collected or properly accounted for by Customs, 
all related protests, petitions, and court actions fully concluded, and 
all refunds due to importers on the underlying entries are paid in full.
    (2) Once the requirements set out in paragraph (d)(1) of this 
section have been met, notice of a final distribution will be issued 
pursuant to Sec. 159.62.
    (3) Amounts not timely claimed under the notice of final 
distribution will be permanently deposited into the General Fund of the 
Treasury.
    (e) Interest on Special Accounts and Clearing Accounts. In 
accordance with Federal appropriations law, and Treasury guidelines on 
Special Accounts, funds in such accounts are not interest-bearing unless 
specified by Congress. Likewise, funds being held in Clearing Accounts 
are not interest-bearing unless specified by Congress. Therefore, no 
interest will accrue in these accounts. However, statutory interest 
charged on antidumping and countervailing duties at liquidation will be 
transferred to the Special Account, when collected from the importer.
    (f) Distribution final and conclusive. Except as provided in 
paragraphs (b)(3) and (c)(3) of this section, any distribution made to 
an affected domestic producer under this section shall be final and 
conclusive on the affected domestic producer.
    (g) Annual report; disclosure of information. Although it is not 
mandated in the law (19 U.S.C. 1675c), Customs will issue an annual 
report on the disbursements. This report will be available to the public 
via the Customs website. The annual report will address any initiatives 
that have been implemented to improve the liquidation and disbursement 
process. In addition, the annual report will include the information 
described in paragraphs (g)(1) and (g)(2) of this section.
    (1) Company-specific information. The annual report will include the 
following information concerning those parties that have submitted 
certifications for a distribution of the offset with respect to each 
order or finding as identified by its case number:
    (i) The name of the claimant;
    (ii) The total dollar amount claimed by that party on its 
certification; and
    (iii) The total dollar amount disbursed to that company by Customs.
    (2) General information. The annual report will include the 
following general information for each order or finding as identified by 
its case number:
    (i) The number of entries and dollar amounts in the clearing account 
at the beginning of each fiscal year;
    (ii) The number and amount of Customs re-liquidations during the 
fiscal year; and
    (iii) The dollar amounts remaining uncollected from Customs bills 
issued during the fiscal year.