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Cargo Release Test Expanded to Include Trucks, Allow Certification from ACE Entry Summary

Friday, May 02, 2014
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection is making two modifications to its ongoing test of cargo release functionality (formerly known as simplified entry) in the Automated Commercial Environment. Specifically, CBP is (1) expanding the test to include cargo transported by truck and (2) allowing importers and customs brokers to certify from summary (i.e., filing the entry and entry summary together as one transaction and certifying through the filing of the ACE entry summary the accuracy of ACE cargo release (entry) data elements) for cargo transported by air, ocean or rail. CBP is also inviting more participation in this test, which is slated to run until approximately Nov. 1, 2015.

Certifying from Entry Summary. To certify from ACE entry summary (i.e., , importers and brokers need to file the following.

- ACE cargo release data elements: importer of record number, 10-digit HTSUS number, country of origin, bill of lading, bill of lading issuer code, entry number, entry type, estimated shipment value, quantity of shipping units shown in the bill of lading, buyer name and address, buyer employer identification number (consignee number), seller name and address, and manufacturer/supplier name and address

- ACE entry summary data

- three additional data elements not otherwise required for the ACE entry summary transmission and defined in accordance with the importer security filing regulations: seller name and address, buyer name and address, and manufacturer/supplier name and address

Certification from ACE entry summary is available for type 01 (consumption) and type 11 (informal) commercial entries of cargo transported by air, ocean or rail. It is not available for truck shipments, split shipments, partial shipments, entry on cargo that has been moved in-bond from the first U.S. port of unlading, or entries requiring partner government agency information.

Upon receipt of the information specified above, CBP will process the submission and subsequently transmit its cargo release decision to the filer. The merchandise will then be considered to be entered upon its arrival in the port with the intent to unlade, as provided by current 19 CFR 141.68(e) and certified from summary. If payment for entry is required, it will continue to be processed through the Automated Commercial System.

A filer may electronically submit a correction or a request for cancellation of the entry at any time prior to the cargo arriving and being released. If a submission is transmitted to CBP requesting correction or cancellation, CBP’s decision regarding the original submission is no longer controlling. This feature will be a benefit to truck imports in particular, as today most border brokers/importers do not certify from summary due to the likelihood of cancellation, the current manual cancellation process and the fact that certifying from summary triggers the scheduling of duty payment.

Truck Cargo. The cargo release test is being extended to the filing and processing of type 01 (consumption) and type 11 (informal) commercial entries transported by truck. CBP states that this expansion will allow for automated corrections and cancellations and entry for a full manifested bill quantity. However, this phase of the test will not include split shipments, partial shipments, entry on cargo that has been moved in-bond from the first U.S. port of unlading, or entries requiring partner government agency information.

Under this test, in lieu of filing CBP Form 3461 (entry) data, the importer or broker acting on behalf of the importer must file the 12 ACE cargo release data elements set forth above at any time prior to arrival of the cargo at the U.S. port of arrival with the intent to unlade. Upon receipt of these data elements, CBP will process the submission and subsequently transmit its cargo release decision to the filer.

A filer may electronically submit a correction or a request for cancellation of the entry at any time prior to the cargo arriving and being released. If such a submission is made, CBP’s decision regarding the original submission is no longer controlling.

Application Criteria. Applicants to participate in this test must (1) be a self-filing importer or broker who has the ability to file ACE entry summaries certified for cargo release, or (2) have stated its intent to file entry summaries in ACE in its request to participate in the test. Applicants must provide CBP with their filer code and the port(s) at which they are interested in filing ACE cargo release transaction data (which may currently be submitted only for entries filed at certain ports). Applicants must also use a software package that has completed Automated Broker Interface certification testing for ACE and offers the simplified entry message set prior to transmitting data under the test. CBP will try to accept all new eligible applicants on a first come, first served basis; however, if the volume of eligible applicants exceeds its administrative capabilities, CBP will reserve the right to select eligible participants in order to achieve a diverse pool.

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