| Title: | MOD ACT/INTEREST |
|---|---|
| Date: | 1994-02-14 |
| To: | abi |
| Links: | previous, next |
TO : ALL ABI BROKERS.
FROM : JUDY SCHOENY
SUBJECT : MOD-MOD ACT/INTEREST
DATE : 02/14/94
TO : ALL INTERESTED PARTIES
FROM : DIRECTOR, MOD ACT TASK FORCE
SUBJECT: INTEREST
SECTION 642 OF THE NORTH AMERICAN FREE TRADE IMPLEMENTATION
ACT ((107 STAT. 2057) (PUBLIC LAW 103-182) (TITLE VI, CUSTOMS
MODERNIZATION) AMENDED SECTION 505 OF TITLE 19, UNITED STATES
CODE, REGARDING THE ASSESSMENT OR PAYMENT OF INTEREST FOR
UNDERPAYMENT OR OVERPAYMENT OF DUTIES AND FEES. THIS SECTION WAS
INCLUDED IN THE MOD ACT ALONG WITH THE SECTIONS ON REASONABLE
CARE AND INFORMED COMPLIANCE. IT IS INTENDED AS AN INCENTIVE FOR
BOTH THE IMPORTER TO PROPERLY VALUE AND CLASSIFY IMPORTED
MERCHANDISE AND CUSTOMS TO PROMPTLY PROCESS THE ENTRY SUMMARY.
THIS CHANGE WAS MADE IN THE INTEREST OF FAIRNESS. THE OLD
INTEREST LAW REQUIRED NO PAYMENT OF INTEREST FOR OVERPAYMENTS.
THE NEW LAW PROVIDES FOR INTEREST ON REFUNDS AS WELL AS ON
UNDERPAYMENTS.
SECTION 642 ALSO PROVIDES THAT IF DUTIES, FEES, AND INTEREST
DETERMINED TO BE DUE ARE NOT PAID IN FULL WITHIN 30 DAYS AFTER
ISSUANCE OF A BILL, ANY UNPAID BALANCE SHALL BE CONSIDERED
DELINQUENT AND INTEREST WILL ACCRUE. THIS IS A CHANGE FROM
PREVIOUS LAW WHICH PROVIDED A 45-DAY GRACE PERIOD.
EFFECTIVE FOR ALL ENTRIES MADE ON OR AFER DECEMBER 8, 1993,
INTEREST WILL BE ASSESSED ON ALL UNDERPAYMENTS AND PAID ON
OVERPAYMENTS. WE HAVE ISSUED INSRUCTIONS TO OUR FIELD OFFICES TO
BEGIN PROCESSING LIQUIDATIONS FOR ENTRIES MADE BEFORE THAT DATE.
DETAILED INSTRUCTIONS, INCLUDING THOSE ON HANDLING SUPPLEMENTAL
TENDERS AND ADMINISTRATIVE REFUNDS WILL BE FORTHCOMING.
SHOULD YOU NEED MORE INFORMATIOHN, PLEASE CONTACT THE ENTRY
OPERATIONS BRANCH, OFFICE OF TRADE OPERATIONS AT (202) 927-0380.