Print PDF

Practice Areas

Improper Use of Informal Entry Summaries Cited in CBP Notice

Wednesday, September 18, 2013
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection at the port of Champlain, N.Y., issued Sept. 16 a notice warning filers, importers, carriers and others against the improper use of informal entry summaries.

According to the notice, a recent review by the port’s Entry Division revealed that filers/brokers were erroneously filing informal (type 11) entry/entry summaries based on the merchandise being U.S. goods returned, classified under HTSUS 9801.00.10, and the value being under $10,000. CBP states that the only time a filer/broker can claim informal entry/entry summary under 19 CFR 143.21 (k) is if the entry/entry summary is solely USGR with a value under $10,000 and the product is imported either (a) for the purpose of repair or alteration prior to reexportation or (b) after having been either rejected or returned by the foreign purchaser to the U.S. for credit.

In addition, the notice states, filers/brokers were observed filing informal entry/entry summaries on merchandise where the value is over $2,500 but less than $10,000 because they have a line that is subject to USGR. Under 19 CFR 143.21 (a), however, a formal entry/entry summary is required if the value of the shipment exceeds $2,500 (with certain exceptions), regardless of whether any line is USGR.

CBP states that filers/brokers should take immediate action to ensure that they are in compliance with 19 CFR 143.21 and that any future violations of this nature may result in broker penalty action under 19 USC 1641 due to lack of responsible supervision and control.

To get news like this in your inbox daily, subscribe to the Sandler, Travis & Rosenberg Trade Report.

Customs & International Headlines