Update on Post Summary Corrections (PSC) for importers

With the transition to ACE over the last few years, one of the big benefits was the improvement of the Post Summary Corrections(PSC) filing process.  With that, importers were looking forward to correcting entries quickly, easily, and less-expensively, regardless of the original filer.

However, last year, CustomsNow identified a bug in ACE which was preventing importers from filing a PSC for an entry that was originated by their 3rd party broker.  We worked closely with CBP to help resolve, and finally, we’re happy to announce that this issue was recently fixed. 

Now, many of our import clients are centralizing their correction process by either self-filing PSCs directly with Customs or by using CNI consulting to file on their behalf.  This is especially helpful to manage refunds for those lucky enough to have a China Section 301 Exclusion or other refund situation.

The process is simple; run an ACE report, make corrections to the data, upload using CNI’s Import Upload Tool, and transmit to CBP.  Results are returned in seconds and ACE data is updated immediately.  There is even an “Accelerated Liquidation Requested” box for refunds to request that the entry liquidate within the 2-week cycle.  Any follow up requests for documents from CBP are simply uploaded and transmitted via DIS.  Learn more here.

If you’d like to discuss, please contact us at sales@customsnow.com.

Sincerely,  CustomsNow™

CPSC begins to integrate with ACE

The September Trade Support Network (TSN) monthly meeting featured speakers from the Consumer Product Safety Commission (CPSC) and our own Nic Adams, VP Client Services for CustomsNow, was there. 

The CPSC representatives announced that in late Fall, 2019, they will be deploying functionality that will link their Risk Assessment Methodology system, known as ITDS/RAM, with ACE to further coordinate efforts with CBP and the trade community regarding examination and disposition results. This represents the culmination of 2 years of work with CBP to achieve the first phase, Hold Request and Conditional Release Coordination.

This first step in integrating with ACE will allow CPSC to more effectively notify CBP of shipments that are of concern and may require an examination in order to ensure the product is safe for consumers. (Today they manually notify CBP Officers of shipments they wish held.)  They explained there are over 300 HTS numbers that they have identified as high-risk.  The list of HTS numbers is not readily available but general product categories.   Learn more details about this new program here.  TSN members strongly suggested they work with CBP to flag those HTS numbers as other PGAs generally do. 

The CPSC uses the entry data primarily to identify high-risk shipments and, therefore, their review cannot begin until the entry is filed.  They will not receive the entry details from CBP until the entry has been filed and the conveyance has been ‘arrived’ by the carrier. 

Nic asked, “If a shipment is ‘Under Review’, should the filer upload the commercials to ACE’s Digital Imaging System (DIS) right away”?  The answer was “No”, and if the CPSC believes the commercial documents may be of value, they will contact the filer and request the documents. 

This process is like the one employed today by CBP-Agriculture, who do not receive PGA data from the filer.  Rather, they review manifests for products that may cause harm to U.S. agriculture.  Please see the CPSC Participation in 1USG Notification Messaging at Import, attached, for more. 

Contact CustomsNow if you have any questions @ sales@customsnow.com.

FY2020 CBP increases MPF min and max amount

According to CBP, due to inflation the minimum and maximum amount for MPF (Merchandise Processing Fee) for CBP fiscal year 2020 will change starting October 1st.

The MPF ad valorem rate of 0.3464% will not change, however the minimum and maximum amounts on formal entries will change as follows:

  • MPF minimum as of Oct 1st will increase from $26.22 to $26.79
  • MPF maximum as of Oct 1st will increase from $508.70 to $519.76

A complete list of CBP fees for FY2020 can be found in the Federal Register Notice here.

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.