Have you heard about CBP’s Residue Pilot and wondered what it means to your operations? Integration Point is hosting a one-hour, free webcast featuring three speakers from Customs and Border Protection to share information on this pilot program. The panelists will provide an overview of the key points of the U.S. Customs and Border Protection [...]
Have you heard about CBP’s Residue Pilot and wondered what it means to your operations?
Integration Point is hosting a one-hour, free webcast featuring three speakers from Customs and Border Protection to share information on this pilot program.
The panelists will provide an overview of the key points of the U.S. Customs and Border Protection National Customs Automation Program Test Concerning Manifesting and Entry of Residue Found in Instruments of International Traffic (IITs) with a focus on the following key areas:
• Background on the Residue Pilot
• Calculations used by CBP to determine percentages by mode
• Technical issues – entry off the manifest
• User fees
• Roll out of the pilot, enforcement and outreach planned
• Issues on Import Security Filings, bonding and record keeping
Date/Time: Tuesday, April 9, 2013 | 2:00 PM EST
Click here to register for this FREE webcast.
Find out more about CBP issues with regard to Residual Cargo and Instruments of International Traffic here.
In preparation for operating under sequestration, CBP has redirected resources toward only the most critical, core functions and has discontinued or postponed certain important but less critical activities in an effort to reduce budget expenditures. The mandated across-the-board spending cuts took effect on March 1, 2013. The cuts tied to the sequestration will be made [...]
In preparation for operating under sequestration, CBP has redirected resources toward only the most critical, core functions and has discontinued or postponed certain important but less critical activities in an effort to reduce budget expenditures.
The mandated across-the-board spending cuts took effect on March 1, 2013. The cuts tied to the sequestration will be made equally across the agency, with no preference by port of arrival. The first, immediate cuts will reduce overtime beginning March 1st, and personnel furloughs may begin in mid-April. CBP managers at the field offices and ports of entry conducted an in-depth analysis of their operations to identify any current activities, duties, and hours of operation that could be adjusted to mitigate the impact of the significant reductions in expenditures mandated by the sequester.
However, given the magnitude of the reductions, CBP currently estimates that there may potentially be delays up to several hours at land border crossings, passenger processing times may increase by about 50%, and there may be up to an additional five days added to cargo inspections at ocean ports of entry.
Once furloughs commence, there may be more risk-based adjustments made regarding other inspections, with less impact to trusted travelers and trusted traders. There could be some eventual delays in providing advice and rulings. Additionally, strategic initiatives such as the Automated Commercial Environment (ACE) and the rollout of the Centers of Excellence and Expertise (CEE) may be impacted. Continue reading »
U.S. Customs and Border Protection (CBP) has issued a draft General Notice of National Customs Automation Program Test Concerning Manifesting and Entry of Residue Found in Instruments of International Traffic. CBP is requesting industry input on this draft document before publishing the notice in the Federal Register. Moving forward with this test program, referred to [...]
U.S. Customs and Border Protection (CBP) has issued a draft General Notice of National Customs Automation Program Test Concerning Manifesting and Entry of Residue Found in Instruments of International Traffic. CBP is requesting industry input on this draft document before publishing the notice in the Federal Register.
Moving forward with this test program, referred to as the “Residue Manifesting and Entry Test”, allows CBP to suspend certain of their regulations and supersedes previous FAQs issued as guidance to manifesting and entry of Instruments of International Traffic (IIT), i.e. empty bulk commodity containers returning to the United States.
This test follows CBP’s cancellation of the December 28, 2012 proposed enforcement of 2009’s HQ ruling H026715, requiring containers with residue to be manifested and entered upon return to the U.S. instead of being simply declared as empty Instruments of International Traffic (IIT) as is presently done.
The draft notice describes CBP’s rationale for the test as well as operational details and conditions, among them:
• Participation is voluntary and open to all parties submitting electronic manifests or advance electronic cargo information.
• Test implementation will be in phases by mode starting with rail followed by truck.
• Manifest threshold limits are 3% for truck and ocean vessels, 7% for rail, and 5% for air mode.
• Three procedures/conditions are provided for each mode:
- Containers Arriving Clean – No Residue;
- Containers Arriving With Cargo Exceeding x%; and
- Containers Arriving With Cargo Exceeding x% and has no commercial value.
• If a residue entry is filed with no commercial value – additional requirements of other government agencies need not be met.
• There are no additional bonding requirements for the test.
• Obligations to manifest and enter residual cargo are not relieved for non-participants. (This point needs to be clarified by CBP) Continue reading »
U.S. Customs and Border Protection has posted to its website an updated guidance document on a wide range of topics concerning the Automated Commercial Environment. Questions and answers in this 100+ page guide are divided into the following categories. – systems background – Automated Broker Interface – general – application – Cargo Systems Messaging Service [...]
U.S. Customs and Border Protection has posted to its website an updated guidance document on a wide range of topics concerning the Automated Commercial Environment.
Questions and answers in this 100+ page guide are divided into the following categories.
- systems background
- Automated Broker Interface
- general
- application
- Cargo Systems Messaging Service
- carriers
- Document Image System
- e-Manifest: Rail and Sea
- e-Manifest: Truck
- Cargo Release/Simplified Entry Pilot: Policy
- Cargo Release/Simplified Entry Pilot: Technical
- Entry Summary, Accounts and Revenue
- importer security filing
- periodic monthly statement
- reports
- post-summary corrections
U.S. Customs and Border Protection has issued a report on import trade trends for the first half of fiscal year 2012. Among other things the report includes the following statistics on import value, revenue, source countries, entry summaries, consignees, compliance rates and trade partnership programs for the period Oct. 1, 2011, through March 31, 2012. • total [...]
U.S. Customs and Border Protection has issued a report on import trade trends for the first half of fiscal year 2012. Among other things the report includes the following statistics on import value, revenue, source countries, entry summaries, consignees, compliance rates and trade partnership programs for the period Oct. 1, 2011, through March 31, 2012.
• total import value was $1.18 trillion, on pace to exceed the $2.27 trillion total for FY 2011;
• the percentages of imports that were of dutiable value (31%), conditionally free value (21%) and duty-free value (48%) were unchanged from FY 2011 and have varied only slightly over the past five years;
• total revenue collected was $19.1 billion and total duty collections were $15.3 billion, both on pace to exceed the FY 2011 totals;
• estimated under-collections totaled $149 million, compared with $342 million for all of FY 2011;
• antidumping duty deposits ($193 million) and countervailing duty deposits ($15 million) are both on pace to exceed FY 2011 totals ($329 million and $27 million, respectively);
• a total of 14.8 million entry summaries were filed (on pace to exceed the 29.5 million for FY 2011), the paperless entry summary rate edged up to 92.3%, and the paperless cargo rate fell slightly to 57.4%;
• over 500,000 entry summaries were filed in the Automated Commercial Environment, far exceeding the total for all of FY 2011, and one of every 15 entry summaries is now filed in ACE;
• the total number of consignees was 513,144, compared to 728,651 for FY 2011;
• the major transactional discrepancy trade compliance measurement rate was 97.7%, up from 96.7%;
• Importer Self-Assessment program: 1.6 million ISA entry summaries (11% of the total) covering $285 billion in import value (24% of the total), both on pace to exceed FY 2011 totals;
• Customs-Trade Partnership Against Terrorism: 3.5 million entry summaries filed (24% of the total) covering $361 billion in import value (31% of the total);
• $624 billion in import value was from the top five source countries, on pace to hit the highest annual total in five years; and
• $9 billion in duties were paid on imports from the top five duty-paying source countries (China, Japan, Germany, Vietnam and Indonesia).
Source: STR Trade Report
(CBP) The following updated versions of Automated Customs environment (ACE) User Guides are now available on CBP.gov. The “ACE 101” user guide provides a history of ACE and highlights capabilities currently available. “ACE 101” user guide The “Using the ACE Reports Tool” user guide provides updated instructions for importers, brokers and carriers on running ACE [...]
(CBP)
The following updated versions of Automated Customs environment (ACE) User Guides are now available on CBP.gov.
The “ACE 101” user guide provides a history of ACE and highlights capabilities currently available. “ACE 101” user guide
The “Using the ACE Reports Tool” user guide provides updated instructions for importers, brokers and carriers on running ACE reports, including information on how to use the new Shared Reports folder.
The : “Report Tool for Truck Carriers” user guide provides updated instruction on running ACE reports, including information on how to use the new Shared Reports folder.
The “Periodic Monthly Statement” user guide provides updated information on how to apply for participation in periodic monthly statement.
ACI e-manifest while a tactical program by Canada’s CBSA, there are positive compliance implications for Canadian importers
The Canadian government following on the heels of the US government is finally implementing the much talked about ACI e-manifest program. While it is a tactical program which I tend to stay away from on this blog, there is a positive compliance angle that I did want to highlight. But first a short back grounder on ACI e-manifest.
October 31st was the roll out of the ACI Highway (eManifest) mandate by the Canada Border Service Agency (CBSA). ACI (Advanced Commercial Information) is Canada’s regulation requiring cross-border shippers and carriers to file electronic manifests for Canada-bound shipments one hour prior to their arrival at the Canadian border. This milestone begins the twelve month optional reporting period combined with six months of Informed Compliance. Once the optional reporting period is closed, the CBSA has indicated it will begin to impose Administrative Monetary Penalty System (AMPS) fines to those shipments that arrive at the border without a prior approved ACI filing. This week, Canadian Transportation and Logistics published an article interviewing Con-way Freight to find out what their experience has been as they were part of the CBSA’s pilot project. To read that interview click here
Alan Dewar, VP Canadian Operations, GHY International share this regarding the implementation of e-manifest in Canada:
eManifest ‘closes the loop’ of supply chain cooperation between CBSA and ‘importers/carriers/custom broker service providers’. Currently the business systems used by importers, carriers and customs brokers to communicate with CBSA rely heavily individual ‘checks and balances’. If any single party doesn’t open and close a file from pre-Arrival awareness to final accounting it is possible for trade reporting to slip through the cracks. Anything slipping through the cracks can attract Administrative Monetary Penalties at a later date when CBSA perform audit samplings.
As Mr. Dewar mentioned the compliance issue today is the AMPS penalty related to lack of verification (post audit) if a driver at the border has presented paperwork on your behalf but failed to get confirmation from CBSA. Especially an issue when you use LTL (less than truckload) freight where there are multiple shipments to a truck. According to Mr Dewar:
LTL (less than truckload) carriers particularly are embracing the benefits of eMfst. Previously document files would need to be scanned and logged individually by CBSA at time of border crossing. We’ve seen situations where a truck driver would fully present to CBSA but ‘documents would be stuck together or a scan would fail’. Administrative Penalties if undetected include a first infraction of $2,000, second infraction $4,000 and escalating from there. Imagine fully declaring to Customs at border crossing with 10 shipments where ’2 documents stuck together or failed at scan’ and incurring a fine of $6,000 ($2,000 + $4,000)? With eMfst any single shipment will automatically present the entire load to Customs for import release processing decisions. All supply chain partners are excited about the accountability and risk management benefits of eMfst.
In an ACI e-manifest world with the right provider you can have a definitive audit trail with each e-manifest that is filed. No replying on stamping and no concerns for files getting stuck together. There are some assumptions here such as the carrier must participate in the RNS (Release Notification System) to have visibility if the broker partner has filed the entry on behalf of the importer, while the carrier doesn’t have to wait for that filing in today’s world there is still ongoing discussion if the importer would be subject to a penalty on their shipment if both sides of the equation haven’t been filed in advance in order to allow CBSA proper review and targeting. We are keeping an eye on this issue and it’s compliance obligations to importers and exporters.
This again reinforces another reason why the Integrated Trade Compliance Strategy makes sense as the lines of communication and visibility as defined by the strategy would ensure that partners know who owns what and stay in communication and sync with regards to tactical issues like customs clearance and now ACI e-manifest.
