CBP Form 29 is the Notice of Action Customs issues when it proposes to change an entry, usually by advancing the duty rate, the value, or the classification. The form comes in two versions: Action Proposed, which gives the importer 20 days to respond, and Action Taken, which means the change is already made and the remedy is a protest within 180 days of liquidation under 19 U.S.C. 1514. A duty increase over $15 triggers the notice. Silence on an Action Proposed converts the proposal into the liquidation.
Action Proposed means you have twenty days
CBP Form 29 is the Notice of Action, and it is the form Customs uses when it wants to change something on an entry. The most common change is a rate advance: Customs disagrees with the classification and proposes a higher duty rate. The second is a value advance: Customs disagrees with the declared value and proposes a higher one. The third is an excess weight or quantity finding, and the fourth is other, which covers everything from marking to origin.
The form comes in two versions, and the version decides the deadline. Action Proposed means Customs is telling you what it intends to do and giving you 20 days to respond. Action Taken means the change is already made and the entry has been liquidated at the new rate. The distinction is in the heading, and it is the first thing to check when the form arrives, because the response window is completely different.
Related reading on this site: TariffWatch HQ and CBP Form 28 vs Form 29: The Question and the Decision cover the neighbouring problems in more depth.
The $15 trigger and the 314-day hold
A duty increase over $15 triggers the notice. Below that threshold, Customs can liquidate without issuing a Form 29, because the amount is too small to justify the paperwork. Above it, the importer is entitled to notice and a chance to respond. The threshold is per entry, not per shipment, so a small increase on a large entry can cross it easily.
The entry stays open while the Form 29 is pending. The standard hold is 314 days, which is the period Customs has to act on the entry before it liquidates by operation of law. During that period the importer can respond, provide evidence, and argue the classification or value. After it, the entry liquidates, and the remedy shifts from a response to a protest.
Silence converts the proposal into the liquidation
The most expensive mistake on a Form 29 is silence. An Action Proposed that receives no response within 20 days becomes the liquidation. Customs does not need a second notice. The proposal is the liquidation, and the importer's remedy is now a protest within 180 days of liquidation under 19 U.S.C. 1514, which is a harder and slower path than a response would have been.
The response should be specific. If the issue is classification, cite the tariff provision, the explanatory notes, and any binding ruling that supports the importer's position. If the issue is value, provide the invoice, the payment records, and the evidence that the declared value is correct. A general objection, we disagree, is not a response. The surety is notified of the Form 29 as well, because the surety's bond covers the additional duty if the importer does not pay it.
Frequently asked questions
What is CBP Form 29?
It is the Notice of Action Customs issues when it proposes to change an entry, usually by advancing the duty rate, the value, or the classification. It comes under 19 CFR 152.2, and a duty increase over $15 triggers the notice.
What is the difference between Action Proposed and Action Taken?
Action Proposed gives the importer 20 days to respond before the change takes effect. Action Taken means the change is already made and the entry has been liquidated, and the remedy is a protest within 180 days of liquidation under 19 U.S.C. 1514.
What happens if I do not respond to a Form 29?
Silence converts the proposal into the liquidation. Customs does not need a second notice. The importer's remedy is then a protest, which is a harder and slower path than a response would have been.
How long does a Form 29 hold an entry open?
The entry is held open for 314 days while the Form 29 is pending, which is the period Customs has to act before the entry liquidates by operation of law. The surety is notified as well, because the bond covers the additional duty.