§1520. Refunds and errors

(a) Cases in which refunds authorized

The Secretary of the Treasury is authorized to refund duties or other receipts in the following cases:

(1) Excess deposits.-Whenever it is ascertained on liquidation or reliquidation of an entry or reconciliation that more money has been deposited or paid as duties than was required by law to be so deposited or paid;

(2) Fees, charges, and exactions.-Whenever it is determined in the manner required by law that any fees, charges, or exactions, other than duties and taxes, have been erroneously or excessively collected; and

(3) Fines, penalties, and forfeitures.-Whenever money has been deposited in the Treasury on account of a fine, penalty, or forfeiture which did not accrue, or which is finally determined to have accrued in an amount less than that so deposited, or which is mitigated to an amount less than that so deposited or is remitted.

(4) Prior to liquidation.-Prior to the liquidation of an entry or reconciliation, whenever it is ascertained that excess duties, fees, charges, or exactions have been deposited or paid by reason of clerical error.

(b) Authorization of appropriations

The necessary moneys to make such refunds are authorized to be appropriated annually from the general fund of the Treasury.

(c) Reliquidation of entry or reconciliation

Notwithstanding a valid protest was not filed, the Customs Service may, in accordance with regulations prescribed by the Secretary, reliquidate an entry or reconciliation to correct-

(1) a clerical error, mistake of fact, or other inadvertence, whether or not resulting from or contained in electronic transmission, not amounting to an error in the construction of a law, adverse to the importer and manifest from the record or established by documentary evidence, in any entry, liquidation, or other customs transaction, when the error, mistake, or inadvertence is brought to the attention of the Customs Service within one year after the date of liquidation or exaction; or

(2) any assessment of duty on household or personal effects in respect of which an application for refund has been filed, with such employee as the Secretary of the Treasury shall designate, within one year after the date of entry.

(d) Goods qualifying under NAFTA rules of origin

Notwithstanding the fact that a valid protest was not filed, the Customs Service may, in accordance with regulations prescribed by the Secretary, reliquidate an entry to refund any excess duties (including any merchandise processing fees) paid on a good qualifying under the rules of origin set out in section 3332 of this title for which no claim for preferential tariff treatment was made at the time of importation if the importer, within 1 year after the date of importation, files, in accordance with those regulations, a claim that includes-

(1) a written declaration that the good qualified under those rules at the time of importation;

(2) copies of all applicable NAFTA Certificates of Origin (as defined in section 1508(b)(1) of this title); and

(3) such other documentation relating to the importation of the goods as the Customs Service may require.

(June 17, 1930, ch. 497, title IV, §520, 46 Stat. 739 ; June 26, 1934, ch. 756, §2, 48 Stat. 1225 ; June 25, 1938, ch. 679, §18, 52 Stat. 1086 ; Aug. 8, 1953, ch. 397, §20, 67 Stat. 519 ; Pub. L. 91–271, title II, §210, June 2, 1970, 84 Stat. 287 ; Pub. L. 95–410, title II, §210, Oct. 3, 1978, 92 Stat. 903 ; Pub. L. 98–573, title II, §§210(b), 212(c)(B), formerly §212(b)(7)(B), Oct. 30, 1984, 98 Stat. 2977 , 2984, renumbered Pub. L. 99–514, title XVIII, §1889(3), Oct. 22, 1986, 100 Stat. 2925 ; Pub. L. 103–182, title II, §206, title VI, §§642(b), 646, Dec. 8, 1993, 107 Stat. 2095 , 2205, 2207; Pub. L. 106–36, title II, §2408(a), June 25, 1999, 113 Stat. 171 .)

Codification

Act June 26, 1934, effective July 1, 1935, provided for repeal of certain permanent appropriations authorizing, in lieu thereof, an annual appropriation from the general fund of the Treasury.

Prior Provisions

This section, as originally enacted, contained a paragraph (b) making a permanent appropriation of the moneys necessary to make refunds. Effective July 1, 1935, paragraph (b) was repealed by act June 26, 1934, ch. 756, §2, 48 Stat. 1225 , such act authorizing, in lieu thereof, an annual appropriation from the general fund of the Treasury.

Provisions similar to those in this section were contained in act Sept. 21, 1922, ch. 356, title IV, §520, 42 Stat. 973 . That section was superseded by section 520 of act June 17, 1930, comprising this section, and repealed by section 651(a)(1) of the 1930 act.

Prior provisions somewhat similar to those in subdivisions (1) and (3) of paragraph (a) for refund of moneys paid on account of unascertained or estimated duties or payments on appeal, and for correction of clerical errors within one year, with further provisions making an appropriation and requiring reports to Congress of moneys refunded, were contained in act Oct. 3, 1913, ch. 16, §III, Y, 38 Stat. 191 , which reenacted the provisions of Customs Administrative Act June 10, 1890, ch. 407, §24, 26 Stat. 140 , as renumbered and reenacted by Payne-Aldrich Tariff Act of August 5, 1909, ch. 6, §28, 36 Stat. 103 . Said section III, Y, of the 1913 act was repealed by act Sept. 21, 1922, ch. 356, title IV, §643, 42 Stat. 989 .

Provisions concerning the refund of moneys collected as duties in accordance with any decision, etc., of the Secretary of the Treasury, with provisos concerning reliquidations, correction of errors, household effects and other articles exempt from duty, were contained in act March 3, 1875, ch. 136, 18 Stat. 469 , which was also repealed by section 643 of the act of Sept. 21, 1922.

R.S. §3011 (as amended by act Feb. 27, 1877, ch. 69, §1, 19 Stat. 247 , and act Feb. 1, 1888, ch. 4, 25 Stat. 6 ) and section 3012, relative to actions to recover duties paid under protest, and sections 3012½ and 3013, relative to refunds, were repealed by the Customs Administrative Act of June 10, 1890, ch. 407, §29. 26 Stat. 141 .

Act June 7, 1924, ch. 357, 43 Stat. 660 , authorizing the remission of unpaid customs duties on material belonging to the United States and theretofore imported by the War Department, was omitted from the Code as temporary.

Amendments

1999-Subsec. (d). Pub. L. 106–36 inserted "(including any merchandise processing fees)" after "excess duties" in introductory provisions.

1993-Subsec. (a)(1), (4). Pub. L. 103–182, §646(1), inserted "or reconciliation" after "entry".

Subsec. (c). Pub. L. 103–182, §646(2)(A), (B), substituted "Customs Service" for "appropriate customs officer" and inserted "or reconciliation" after "entry" in introductory provisions.

Subsec. (c)(1). Pub. L. 103–182, §646(2)(A), (C), inserted ", whether or not resulting from or contained in electronic transmission," before "not amounting to", and substituted "Customs Service" for "appropriate customs officer".

Subsec. (d). Pub. L. 103–182, §206, added subsec. (d). See Construction of 1993 Amendment note below.

Pub. L. 103–182, §642(b), struck out subsec. (d) which read as follows: "If a determination is made to reliquidate an entry as a result of a protest filed under section 1514 of this title or an application for relief made under subsection (c)(1) of this section, or if reliquidation is ordered by an appropriate court, interest shall be allowed on any amount paid as increased or additional duties under section 1505(c) of this title at the annual rate established pursuant to that section and determined as of the 15th day after the date of liquidation or reliquidation. The interest shall be calculated from the date of payment to the date of (1) the refund, or (2) the filing of a summons under section 2632 of title 28, whichever occurs first." See Construction of 1993 Amendment note below.

1984-Subsec. (a)(4). Pub. L. 98–573, §212(b)(7)(B), added par. (4).

Subsec. (d). Pub. L. 98–573, §210(b), added subsec. (d).

1978-Subsec. (c)(1). Pub. L. 95–410 substituted "appropriate customs officer within one year after the date of liquidation or exaction" for "customs service within one year after the date of entry, or transaction, or within ninety days after liquidation or exaction when the liquidation or exaction is made more than nine months after the date of the entry, or transaction".

1970-Subsec. (c). Pub. L. 91–271 in introductory material substituted "the appropriate customs officer may, in accordance with regulations prescribed by the Secretary," for "the Secretary of the Treasury may authorize a collector to", and in par. (1) struck out "appraisement" wherever appearing and substituted "ninety" and "nine" for "sixty" and "ten", respectively.

1953-Subsec. (c)(1). Act Aug. 8, 1953, extended the relief provision to situations involving clerical errors, mistakes of fact, or any other inadvertence not amounting to an error in the construction of a law, in any entry, liquidation, appraisement or other customs transaction, when such error, mistake or other inadvertence is adverse to the record or established by written evidence.

Subsec. (c)(2). Act Aug. 8, 1953, permitted correction of assessments of duty on household or personal effects which are subject to duty.

1938-Subsecs. (b), (c). Act June 25, 1938, added subsecs. (b) and (c).

Effective Date of 1999 Amendment

Amendment by Pub. L. 106–36 applicable with respect to goods entered, or withdrawn from warehouse for consumption, on or after the 15th day after June 25, 1999, see section 2408(c) of Pub. L. 106–36, set out as a note under section 1514 of this title.

Effective Date of 1993 Amendment

Amendment by section 206 of Pub. L. 103–182 effective on the date the North American Free Trade Agreement enters into force with respect to the United States [Jan. 1, 1994], see section 213(b) of Pub. L. 103–182, set out as an Effective Date note under section 3331 of this title.

Effective Date of 1984 Amendment

Amendment by section 210(b) of Pub. L. 98–573 applicable with respect to determinations made or ordered on or after Oct. 30, 1984, see section 214(c)(5)(B) of Pub. L. 98–573, set out as a note under section 1304 of this title.

Amendment by section 212 of Pub. L. 98–573 effective on close of 180th day after Oct. 30, 1984, see section 214(d) of Pub. L. 98–573, set out as a note under section 1304 of this title.

Effective Date of 1970 Amendment

For effective date of amendment by Pub. L. 91–271, see section 203 of Pub. L. 91–271, set out as a note under section 1500 of this title.

Effective Date of 1953 Amendment; Savings Provision

Amendment by act Aug. 8, 1953, effective on and after thirtieth day following Aug. 8, 1953, and savings provision, see notes set out under section 1304 of this title.

Effective Date of 1938 Amendment

Amendment by act June 25, 1938, effective on thirtieth day following June 25, 1938, except as otherwise specifically provided, see section 37 of act June 25, 1938, set out as a note under section 1401 of this title.

Construction of 1993 Amendment

Amendment by section 206 of Pub. L. 103–182 to be made after amendment by section 642(b) of Pub. L. 103–182 is executed, see section 212 of Pub. L. 103–182, set out as a note under section 58c of this title.

Plan Amendments Not Required Until January 1, 1989

For provisions directing that if any amendments made by subtitle A or subtitle C of title XI [§§1101–1147 and 1171–1177] or title XVIII [§§1801–1899A] of Pub. L. 99–514 require an amendment to any plan, such plan amendment shall not be required to be made before the first plan year beginning on or after Jan. 1, 1989, see section 1140 of Pub. L. 99–514, as amended, set out as a note under section 401 of Title 26, Internal Revenue Code.

Availability of Transportation and Storage Facilities for Military Purposes

Act Sept. 29, 1942, ch. 567, 56 Stat. 761 , authorized removal of merchandise in bond or customs custody from transportation and storage facilities needed for military purposes, prior to repeal by act July 25, 1947, ch. 327, §1, 61 Stat. 449 .

Cross References

Appropriation account covering "Refunding moneys erroneously received and covered (Customs)" abolished and unobligated balances transferred to surplus fund of Treasury, see section 1322 of Title 31, Money and Finance.

Provisions for abatement and refund of duties in case of injury to goods while in any public or private warehouse under bond, see section 1563 of this title.

Section Referred to in Other Sections

This section is referred to in sections 1503, 1505, 1509, 1514 of this title.