On March 1, 2000, an entry filed by Speedy Brokers on behalf of its client, Red Rug Imports, is liquidated. The liquidation resulted in a duty increase. On March 20, Red Rug Imports filed a protest against the liquidation. Speedy Brokers received notice on May 19 that the entry has been reliquidated with yet another duty increase. When Speedy Brokers informed Red Rug Imports of the news, Red Rug Imports demanded to know if the reliquidation was legal. The correct response Speedy Brokers should give its client is which one of the following?
A) Customs action was improper, because Red Rug Imports had timely protested the liquidation of the entry.
B) Customs action was improper, because the liquidation of Red Rug Imports entry had become final.
C) Customs action was proper, because the filing of a protest gives Customs the authority to reliquidate in the government’s favor.
D) Customs action was proper, because Customs has authority to voluntarily reliquidate a liquidation within 90 days from the date of the notice of the original liquidation.
E) Customs action was improper, because Customs had not yet issued a decision on the protest.
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The Answer is: D
Citation: 19 CFR 173.3
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