Liquidated vs. Unliquidated Entries: What Every Small Business Needs to Know Before Filing a Tariff Refund
When U.S. Customs and Border Protection (CBP) began processing refunds for the unlawful IEEPA tariffs, they created a two-tiered system based on a single word: “liquidation.”
For many small business owners, this term is completely foreign. However, understanding the difference between liquidated and unliquidated entries is the most critical step in determining how you will get your money back, how long it will take, and whether you need to file a formal legal protest to secure your refund.
What Does Liquidation Mean in Customs Law?
When your goods arrive in the United States, you (or your customs broker) file an Entry Summary and pay the estimated duties. But the process does not end there. CBP then reviews the entry to ensure the classification, value, and duty rate are correct.
Liquidation is the final step in this review process. It is the official, legal determination by CBP that the duty assessment is complete and final.
If an entry is unliquidated, it means CBP has not yet finalized the assessment. The entry is still considered “open.” If an entry is liquidated, it means CBP has closed the file and made a final determination on the duties owed.
Why Does Liquidation Status Matter for Your Refund?
The Supreme Court’s decision to strike down the IEEPA tariffs means the government collected billions of dollars unlawfully. But the mechanism for returning that money depends entirely on whether the specific entry has been liquidated.
Unliquidated Entries: The Fast Track
If your entries are still unliquidated, you are in the best possible position. Because the assessment is not yet final, CBP can simply adjust the duty rate to zero for the IEEPA portion and refund the overpayment.
The government has built an automated system called CAPE (Consolidated Administration and Processing of Entries) specifically to handle these unliquidated claims quickly. If you submit a CAPE Declaration with accurate data, your refund should be processed relatively smoothly.
Liquidated Entries: The Formal Protest
If your entries are already liquidated, the process is much more complex. Under customs law, a liquidated entry is final and binding on both the importer and the government unless it is formally protested within a strict 180-day window.
To get a refund on a liquidated entry, you cannot simply use the automated CAPE system. You must file a formal legal protest under 19 U.S.C. § 1514, arguing that the liquidation was incorrect because the underlying IEEPA tariff was unlawful. This is a much more rigorous process that requires specific legal arguments and documentation.
How to Check Your Liquidation Status
You cannot assume all your entries have the same status. A single business may have hundreds of unliquidated entries and dozens of liquidated ones from the exact same time period.
To find out where you stand, you or your customs broker need to run an entry report through the ACE Secure Data Portal. This report will list every entry and its current liquidation status.
Do You Need Legal Help?
If all your entries are unliquidated, your customs broker may be able to handle the CAPE submission for you. However, if you have liquidated entries, or if you are unsure of your status, you need legal expertise. Filing a formal protest is a legal procedure, and missing the 180-day deadline means forfeiting your right to a refund permanently.
The Dayes Law Firm IEEPA tariff refund lawyers can audit your ACE data, determine the liquidation status of every entry, and file the necessary protests to ensure you recover every dollar you are owed.
Do not let a technicality cost your business thousands of dollars. Call us today at (866) 609-9774 for a consultation.