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In-Bond Change Enforcement Delayed Again

Monday, January 21, 2019
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection is further delaying enforcement of certain aspects of its updated regulations on in-bond movements due to the ongoing federal government shutdown. Enforcement was supposed to begin Feb. 6 but CBP officials say it will be pushed back at least 30 days because the shutdown precluded agency meetings in January to develop an enforcement strategy.

In the meantime, CBP has said the following policies are being followed.

- In-bond shipments that arrive on a mode of transport other than air and are subsequently transferred to air for exportation or movement to a U.S. port of entry may continue to be arrived and exported by CBP.

- In-bonds that originate in the U.S. from either bonded warehouses or foreign-trade zones and are subsequently exported by air may continue to be arrived and exported by CBP.

- The use of FIRMS codes at arrival will not be enforced for those reporting electronically.

- No automated edits in ACE will be implemented, thus avoiding system reject messaging.

- CBP officers at the port will assist traders with in-bond arrival and export reporting as needed.

- Timeframe enforcement for arrival and export reporting beyond the two business days specified in the regulations for those reporting electronically will be extended to four days.

CBP has said that while ports are instructed to issue warnings rather than penalties prior to the enforcement date they will maintain the discretion to fully enforce for egregious or continued violations or a lack of demonstration of good faith efforts.

Additionally, until further notice CBP will (a) provide a stamp or perforation on a CBP Form 7512 verifying exportation upon request of the carrier (which must provide proof of exportation or physical verification), and (b) continue to defer enforcement of the submission of the six-digit HTSUS number.

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