Changes to interest rate calculations for reconciliation

Changes published today in CBP Admin Message CSMS# 19-000310 Interest Rates for Reconciliation

Effective July 2019, CBP will no longer publish on CBP.gov the quarterly interest rates for Reconciliation. Filers can find the quarterly rates on the www.irs.gov website by querying “quarterly interest rates for (YYYY)” in the search engine located on the upper right hand corner of the webpage.

The Reconciliation section of the ACE Business Rules will be updated with the above website for identifying the quarterly rates.

If you have any questions or require additional information, please email OT-RECONFOLDER@CBP.DHS.GOV, Commercial Operations, Revenue and Entry Division, Office of Trade.

To which CEE do you belong?

U.S. Customs Centers of Excellence and Expertise, aka “CEEs” are Customs way to better align with modern business practices. Whether or not you are currently engaged with your CEE, Importers are already assigned to one.

Ever wonder how to find out which CEE team has been assigned to your company? 

Well, it’s not as difficult as you may have thought… In order to get the details, you just need to do a simple bond query with your company’s Federal Identification number, either though your surety, Customs broker, or in ABI/ACE directly . The query results will show you who your CEE team is.  Below is an example of how it looks in the ABI response.

It’s as simple as that! Contact CustomsNow if you have any questions.

CBP Trade Symposium announced – July 23rd-24th

CBP TRADE SYMPOSIUM IN CHICAGO – CBP sent out a formal notice that the Trade Symposium will be held in Chicago this year. The registration will open on Thursday, June 13th, at noon EST. Learn more here.

This is always a great event to get up-to-date information on current trade activities. The event sells out quickly so be sure to register early!

CSMS# 18-000689 RECONCILIATION FILING-FREE TRADE AGREEMENTS (FTA)

ace-logoACE FILING NOTICE – RECON

According to to CBP CSMS# 18-000689, issued today, November 21, when filing a reconciliation for a Free Trade Agreement issue, ACE is displaying incorrect original paid amounts. Until headquarters issues further guidance, filers should submit the reconciliation header information in the Document Imaging System (DIS) when filing the reconciliation with a FTA issue.

If you have any questions or require additional information, please send an email to
OT-RECONFOLDER@CBP.DHS.GOV, Commercial Operations, Revenue and Entry Division, Office of Trade.

CBP publishes entry summary process for new steel and aluminum requirements

steel htsALERT!  Per CSMS Message 18-000240, issued on March 22nd, the additional duty on imports of steel and aluminum articles under Section 232 are effective with respect to goods entered, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on March 23, 2018.

This CSMS message provides specific details on the additional requirements and entry filing process, known as a Section 232.  Below is an overview of the process, or click here to read the full CBP message. 

Which countries are included?  All countries are covered by the initial order except Canada, Mexico, Australia, Argentina, South Korea, Brazil and member countries of the European Union (Austria, Belgium, Bulgaria, Croatia, Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Ireland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Romania, Slovakia, Slovenia, Spain, Sweden and the United Kingdom).

How to file?  CBP has developed new tariff numbers in chapter 99 which allows for the correct additional duties to be calculated and transmitted on the entry.

  • For steel articles subject to the order, classified in the HTS as: 7206.10 through 7216.50, 7216.99 through 7301.10, 7302.10, 7302.40 through 7302.90, and 7304.10 through 7306.90 importers must also claim HTS number 9903.80.01 (25% ad valorem additional duty for steel mill products).
  •  Aluminum articles subject to the order, are defined in the Harmonized Tariff Schedule (HTS) as unwrought aluminum (HTS 7601), aluminum bars, rods, and profiles (HTS 7604); aluminum wire (HTS 7605); aluminum plate, sheet, strip, and foil (flat rolled products) (HTS 7606 and 7607); aluminum tubes and pipes and tube and pipe fitting (HTS 7608 and 7609); and aluminum castings and forgings (HTS 7616.99.51.60 and 7616.99.51.70), including any subsequent revisions to these HTS classifications. For products covered by the order importers must also claim HTS number 9903.85.01 (10% ad valorem additional duty for aluminum products).

*The aluminum order does not apply to products made with aluminum or parts of downstream products.

These additional HTS numbers are now effective and available in CNI.  Per CBP, Importers and filers failing to submit the required Chapter 99 HTS classifications with the entry summary information for imports under the specified Chapter 72, 73, and 76 HTS classifications for the covered countries of origin will receive the following reject messages:

E1 IQ10    LINE SUBJECT TO QUOTA

E1 FQ09   QUOTA NOT ALLOWED FOR ENTRY TYPE

E1 FQ05   BANNED IMPORT

E1 RF998 TRANSACTION DATA REJECTED

For more information, please refer to the Presidential Proclamations on Adjusting Imports of Steel and Aluminum into the United States, Federal Register, 83 FR 11619 and 83 FR 11625, March 15, 2018; and the March 22, 2018 Presidential Proclamations on Adjusting Imports of Steel and Aluminum into the United States.

New ACE reporting to support reconciliation in ACE

hdr_abi-recon-moduleAs you know, CBP delivered ACE Deployment G, Release 4, on Saturday, February 24th, as promised.  One of the critical pieces of this deployment was moving reconciliation entries into ACE, along with drawback, liquidation and other functionality.  Read our prior blog  on this deployment.

Now, CBP has made long-awaited ACE REPORT ENHANCEMENTS relating to recon.   On March 17th, 2018, CBP has deployed two new universes and nine new standard reports in ACE, to further support the transition of reconciliation into ACE.  These enhancements are meant to provide the trade with all necessary information for reconciliation filing.  Read CSMS #18-000229 – ACE Deployment G Reports Deployment – March 17, 2018 here.

For example, ACE ES-501 is a report showing all open entries flagged for recon.  ES-502 provides bond information.

In fact, on April 14, 2018, the Authorized Data Extracts will be retired, and effective this date, all reports capabilities will reside in ACE Reports.

For more information, please review the ACE Deployment G Reports Information Notice for Trade.

CustomsNow is an ACE-certified software vendor and compliance consulting company, whose clients are brokers, importers, exporters, forwarders, and more.  We have an excellent reconciliation solution, which allows filers to upload underlying entry data from any/all various original filers to a single recon.  Contact us to learn more.

CBP announces long-awaited e-commerce strategy

Final E-Commerce Strategic Plan_Page_01_0

On March 6th, 2018, CBP issued their long-awaited E-Commerce Strategy, as announced here.

For several years, CBP has seen a tremendous increase in e-commerce shipments, which CBP defines as high-volume, low-value shipments purchased via electronic means.  These shipments generally enter the U.S. as small package (mail/courier) shipments, and many of these imports fall under the de minimus value amount of $800, where no form of entry is required, known as a Section 321 declaration.  It’s interesting to note that most other nations are reducing the value allowed for these type of “non-entry” shipments, rather than increasing it (read more about the de minimus value increase in 2016 here).

With this growth in e-commerce related volume, CBP says, there is also an increased opportunity for illicit and dangerous products to cross our borders, placing Americans’ health and safety at risk and creating new risks that can compromise U.S. intellectual property rights.  CBP has recently conducted tests where they inspected a large percentage of small packages for a given period and port.  Through these tests, many infractions were discovered, including trademark violations, illicit drugs, and more, further prompting CBP to develop a strategy.

CBP’s resources have traditionally been dedicated to targeting ocean, truck, and air shipments for infractions, and so, did not build sophisticated process around small packages. Now, with this new strategy, CBP will be enhancing their legal authority to address small packages, develop risk-based ways of identifying potential illegal shipments, drive importer compliance, and assist in developing international standards for small packages.

The overall Goals and Objectives of the strategy are:

  • Enhance legal and regulatory authorities to better posture CBP and interagency partners to address emerging threats.
  • Enhance and adapt all affected CBP operations to respond to emerging supply chain dynamics created by the rapid growth of e-commerce.
  • Drive private sector compliance through enforcement resources and incentives.
  • Facilitate international trade standards for e-commerce to support economic prosperity.

Read the complete E-Commerce Strategy plan here.

We, at CustomsNow, are looking forward to the day when importers of small packages or their brokers can electronically file their Section 321 entries through ABI / ACE.  Providing this information to the authorities, in an electronic format, is key to developing and enforcing a risk-based strategy.

Jan. 6th ACE Statement Deployment – Important Information

ace-logoImportant information from our friends at NCBFAA…

Reminder: January 6, 2018 Statements Deployment

As a reminder, CBP will be delivering ACE Deployment G, Release 3B on January 6. At this point, ACE will become the system of record for all statements with the exception of Reconciliation statements. CBP will deliver Statements for Reconciliations as part of ACE Deployment G, Release 4 on February 24, 2018.

CBP will work with filers to address any issues related to this deployment of Statements in ACE, and will provide support as necessary.

To this point, CBP will also host a series of calls to communicate the status of the statements deployment beginning Sunday, January 7 and running through Friday, January 12:

  • On SUNDAY, January 7, 2018, at 1:00 p.m. ET: On this call, CBP will communicate the status of the statements deployment.
  • From MONDAY, January 8, 2018, through FRIDAY, January 12, 2018, 2:00 p.m. ET – 3:00 p.m. ET: On these calls, CBP will provide a short deployment status followed by an open question and answer session.

To dial in for these phone calls, please use the following conference line:  (877) 336-1828  PC: 6124214

For additional information on Deployment G Release 3A and 3B, please click here.

For ACE Deployment G Reports Information Notice, please click here.

12/9 ACE Deployment Partially Delayed – Just announced today by CBP!

Delayed message.e214 & MID moving to ACE; Statements delayed.

As announced today on the ACE Outreach call, and followed by CBP’s December 4th CSMS message on the subjectCBP is pushing out the statement deployment date to Jan 6th.

However, still to be deployed on Dec. 9th is e214 and MID creation.  Read more here regarding the specific changes to statements that all filers need to be aware of.

Also of concern is the potential for a government funding lapse effective December 8, 2017.  CBP notes that they will be closely monitored and will provide future communication regarding any impact as soon as possible.

Stay tuned for more as this develops!

 




	

Switch from ACS to ACE Means Changes to Consignee and Importer Queries

Foreign-Base-Company-Income

The ability to query a consignee in ACS was shut off with the  September 15, 2017 ACE deployment, and CBP is not planning to create this same ability in the new Automated Commercial Environment (ACE).  Read on:

In CBP’s legacy system, ACS, there was a way to query a consignee “as a means for filers to obtain a number which may be used as the ultimate consignee number in cargo release and border cargo release processing when the actual consignee number is not immediately available.”  The application identifier associated with this query was ‘KN.’

This Consignee Name/Address Query transaction allowed a filer to query ACS’s Importer File by transmitting the name and address for an ultimate consignee of interest and receiving a name and address information plus the consignee identification number.

Most importantly, this functionality also provided the ability to determine if CBP had assigned an identification number to a non-resident importer of record.  This feature was a valuable tool for brokers, but no longer.

In a response from the ACE Support Hotline, CBP stated; “U.S. Customs and Border Protection (CBP) is aware of the trade communities concerns related to the discontinuation of the KN application in the Automated Commercial System (ACS). At this time, CBP has decided not to develop or transition the KN application in the Automated Commercial Environment (ACE). To query a Foreign-Based Importer of Record (IOR) number that is already on file with CBP, filers should contact their local or Remote Location Filing (RLF) ports to obtain the CBP-Assigned  IOR number.”

This is one update to ACE that seems to run contrary to the tenant of making information more accessible and transparent.  Brokers and local CBP port staff will have to take additional, and sometimes manual steps to determine this information.