Question 36
Domain 5: Penalties, Liquidation, and Post-EntryAn entry for warehouse was filed in 2025. Liquidation of the entry was never suspended or extended. When is the warehouse entry deemed liquidated by operation of law at the rate of duty, value, quantity, and amount of duties asserted by the importer of record?
Correct answer: B
Explanation
Under the warehouse entry liquidation rule, if liquidation is not suspended or extended, the entry is deemed liquidated “one year from the date of final withdrawal of all merchandise covered by the warehouse entry.” That date controls the rate of duty, value, quantity, and duties asserted by the importer of record.
Why each option is right or wrong
A. One year from the date of entry of the merchandise
Entry date governs ordinary timing concepts, but warehouse entries use final withdrawal as the trigger.
B. One year from the date of final withdrawal of all merchandise covered by the warehouse entry
19 U.S.C. § 1557(a) governs warehouse entries and provides that, absent suspension or extension, the entry is deemed liquidated by operation of law 1 year from the date of the final withdrawal of all merchandise covered by the warehouse entry. That deemed-liquidation date fixes the rate of duty, value, quantity, and duties asserted by the importer of record, so the controlling date is not the filing date in 2025 but the final withdrawal date plus 1 year.
C. One year from the date of the first withdrawal of merchandise covered by the warehouse entry
First withdrawal is too early because remaining warehoused merchandise is still covered by the same entry.
D. Five years from the date of importation of the warehouse merchandise
Five years relates to warehouse storage duration concepts, not deemed liquidation timing.