Liquidation System Law and Legal Definition

Liquidation system is a part of the U.S. Customs' Automated Commercial System, which closes the file on each entry. The liquidation system establishes a batch filing number which is essential for recovering an entry for review or enforcement purposes. The Customs Procedural Reform and Simplification Act of 1978 require that all liquidations be performed within one year from the date of consumption entry or final withdrawal on a warehouse entry.