Customs Brokers: Your annual user fee is due by January 26, 2018!
CBP’s annual user fee is required by CBP for any broker, whether you are a partnership, individual, association or corporation. The fee is due is due at each Customs Broker District where a local permit has been received to conduct CBP business. Failure to pay the user fee will result in suspension and revocation of the permit.
The big news this year is that the fee for 2018 has increased to $141.70, pursuant to fee adjustments required by the Fixing America’s Surface Transportation Act (FAST Act). Read the Nov. 1, 2017 Federal Register Notice here.
Additional information regarding the payment process for these user fees, visit CBP’s website here. Please note, however, that at the time of this writing, CBP has not yet updated their website with the new fee amounts.
As a follow up to our earlier blog…..Customs and Border Protection (CBP) announced earlier today the submission period for the 2018 Customs Broker Triennial Status Report and fee for all licensed customs brokers will open December 15, 2017.
CBP is hosting a webinar on December 13 at 3:00 p.m. EST to help clarify the paperless submission process. All members are encouraged to join to ensure their submissions are properly filed.
CBP’s mission statement is “To safeguard America’s borders thereby protecting the public from dangerous people and materials while enhancing the Nation’s global economic competitiveness by enabling legitimate trade and travel”.
Did you know that you can check out CBP’s website for a detailed snapshot of what CBP does on a typical day to uphold that mission?
Following are a few highlights:
- Processed: 1,069,266 passengers and pedestrians. 326,723 incoming international air passengers and crew. $6.3 billion worth of imported goods. Conducted 1,140 apprehensions between U.S. ports of entry.
- Arrested 22 wanted criminals at U.S. ports of entry.
- Identified 877 individuals with suspected national security concerns.
- Discovered 404 pests at U.S. ports of entry and 4,638 materials for quarantine – plant, meat, animal byproduct, and soil.
- Seized: 7,910 pounds of drugs, $289,609 in undeclared or illicit currency, $3.8 million worth of products with Intellectual Property Rights violations.
- Collected $122.7 million in fees, duties, and taxes.
- Facilitated the release of 89,315 entries of merchandise at our air, land, and sea ports of entry
Customs Brokers… don’t forget!
The submission period for the 2018 CBP Triennial Status Report and fee for all licensed Customs brokers opens Dec. 15, 2017, and runs through Feb. 28, 2018.
The deadline for submitting the 2018 triennial status report and fee is Feb. 28, 2018, at 11:59 p.m. (EST).
Over 14,000 active U.S. Customs brokers can pay electronically through Pay.gov with a credit card, debit card, and digital wallet payments, e.g., PayPal and Amazon Pay. No additional fees are charged for any payments, and receipts are provided electronically. CBP encourages brokers to submit fees electronically via Pay.gov; however, a paper status report and payment may be submitted to the port that originally delivered the license.
Licensed Customs brokers must include an employee list, if applicable, with each status report submitted to CBP in accordance with 19 CFR 111.28(b). In addition, each individually licensed broker must state whether or not he/she still meets the applicable requirements of 19 CFR 111.11 and 111.19 and has not engaged in any conduct that could constitute grounds for suspension or revocation under section 111.53. Broker employee lists and any additional detail can be submitted as a PDF file attachment to the Pay.gov online form.
Click here to learn more about filing options and requirements for the 2018 Triennial submission.
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.
A follow up to our earlier blog regarding the downtime experienced on ACE on November 14, CBP has released the following formal statement. In it, they discuss the outage, their evaluation of the current downtime procedures, and what steps they are taking to further enhance their procedures. CBP is also working closely with Commercial Operations Advisory Council (COAC) to identify areas of concern, and NCBFAA is seeking feedback from it’s members to assist.
CBP Statement Regarding ACE System Status
November 15, 2017
The ACE system resumed cargo processing at approximately 10:00 p.m. EST last night and continues to process normally. All transactions backlogged in the queue were processed as of approximately 1:00 a.m. EST. Our technicians, in collaboration with IBM technicians, are working around the clock to identify the root cause of the disruption to the ACE database. We do know that this issue and the Aug. 2 outage issue are unrelated.
CBP executive leadership continues to communicate with our ports receiving initial reports that downtime procedures worked as expected. The Office of Field Operations is using this event to perform an evaluation of these procedures by polling the ports to identify issues or deficiencies, as well as best practices, in order to enhance our downtime procedures. In addition, CBP client representatives are continuing to assess impacts to trade. Further, CBP will continue engaging the COAC Outage working group and other trade partners to identify areas of concern surrounding operations and our response to the event.
On Wednesday, November 8th, CBP published a General Notice in the Federal Register announcing the transition of Daily and Preliminary Monthly Statements to ACE. “As of December 9th, 2017, ACE will be the sole CBP-authorized EDI system for generating, transmitting and updating daily and monthly statements, and ACE will no longer be a CBP authorized EDI system for such purpose”. The one exception is Reconciliation entries (type 09) which are scheduled to be deployed to ACE on February 24th, 2018.
Also scheduled to transition to ACE on December 9th is the ability to file e214’s, for FTZ admission, and
the creation and maintenance of Manufacturer ID’s (MID.
In addition to Reconciliation entries, the release scheduled for February 24th includes:
• Drawback: Support for core trade processing and
›Automated Surety Interface (ASI)
(Entry Summary Nightly, Entry Summary Quarterly, and Monthly Continuous Bond
• HTS Query
› Drawback Bond Decrementation
› Continuous Bond Sufficiency
No additional ACE deployments are scheduled beyond this release at this time.
As an update to our Blog article of October 24th, on last Thursday’s ACE Technical Call it was announced that CBP has been receiving many questions regarding the new automated in-bond requirements which are scheduled to go into effect on November.
CBP confirmed on the call that currently they are not planning on requiring any additional information on electronic In-Bonds beyond what they receive today. For instance, the 6-digit HTS number will not be required initially. Rather, CBP’s Office of Field Operations will be issuing guidance soon on how they intend to role this out with ‘delayed enforcement.’
Stay tuned for more details!
On November 1 st, 2017, CBP published a General Notice in the Federal Register titled ‘COBRA Fees To Be
Adjusted for Inflation in the fiscal year 2018 CBP Dec. 17–17’. This announces a change to current import entry fees, which importers need to be aware of.
By way of background, CBP explains that “On December 4, 2015, the Fixing America’s Surface
Transportation Act (FAST Act, Pub. L. 114–94) was signed into law. Section 32201 of the FAST Act
amended section 13031 of the Consolidated Omnibus Budget Reconciliation Act (COBRA) of 1985 (19
U.S.C. 58c) by requiring certain customs COBRA user fees and corresponding limitations to be adjusted
by the Secretary of the Treasury (Secretary) to reflect certain increases in inflation ”.
The long-and-short of it for the majority of importers, is that the Harbor Maintenance Fee (HMF) will be
adjusted to a minimum of $25.67. The Merchandise Processing Fee (MPF) cap will be adjusted to $497.99.
This change will go into effect on January 1, 2018.
Customs and Border Patrol Changes Timing
The Post Summary Correction has been modified. Out with the old requirements of 270 days from the date of entry and 20 days prior to scheduled liquidation date, and in with the new:300 days from the date of entry and 15 days from the scheduled date of liquidation (whichever is earlier).
Read the Modification and Clarification of the National Customs Automation Program Tests Regarding Post Summary Corrections Here