Fred’s Salvage Place imports both ball bearings (8482.10.1040 -1.2% (MX)) and tapered roller bearings (8482.20.0040 – 1.9% (MX)) from Mexico. Fred has a completed certificate of origin for both types of bearings from the manufacturer. He claims NAFTA at time of entry on all his bearing shipments from this particular Mexican manufacturer to take advantage of the lower duty rate. On one particular shipment, the part numbers were inverted and Fred mistakenly classified ball bearings as tapered roller bearings. Consequently he paid the 1.9% NAFTA duty rate instead of the correct 1.2% NAFTA duty rate. He does not discover the error until after the entry liquidates. He would like to get a refund for the additional duty and on September 5, 2000 requests your advice as a competent broker. He gives you the following information: Import Date October 10, 1999 Entry Summary Date October 15, 1999 Liquidation Date March 15, 2000 Which ONE of the following actions would you advise him to take?
A) File a 520(d) Post NAFTA Claim.
B) File a 514 Protest.
C) He’s out of luck since it is past 90 days of liquidation.
D) File a 520(c) Claim.
E) Don’t file anything, because U.S. Customs will assess 1592 penalties.
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The Answer is: D.
Citation: (19CFR173.4 &19 USC1520(c)(1) & Part 181.31 Subpart D)
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