Congress Approves Midpoint Interest Calculation in Reconciliation

June 1999

Congress has approved legislation giving Customs the authority to allow midpoint interest calculations on aggregate reconciliations. If the bill becomes law, Customs will move away from the current practice of requiring entry-by-entry interest calculations. Importers, however, will not be required to use midpoint interest methodology and may opt for the current practice. The midpoint methodology the may be used to report downward adjustments to duties, taxes and fees, provided the importer waives any refund. By permitting midpoint interest calculations in aggregate reconciliations, Congress will make the reconciliation much more flexible and attractive to importers. The President is expected to sign the bill into law within the next few weeks.