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CBP Modifies Post-Summary Correction Test to Expand Access to Data

Tuesday, November 19, 2013
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection has issued a notice that, effective Dec. 19, will modify its test concerning the processing of post-summary corrections to entry summaries filed in the Automated Commercial Environment. These modifications will allow filers greater access to data filed in ACE as it relates to the original entry and any subsequent PSC, limit certain additional data elements from being changed via PSC, and modify the criteria for filing a PSC. This notice also clarifies bond obligations when a PSC has been filed, CBP’s authority to reject a PSC and the meaning of certain terms as they relate to the test.

Access to PSC Data. Under the PSC test, importers may file PSCs of certain ACE entry summaries using the Automated Broker Interface. Importers and their brokers may also use ABI to file PSCs to those pre-liquidation ACE entry summaries that are accepted by CBP, fully paid and under CBP control. The full content of the original entry summary is provided only to the filer and full information with respect to the PSC (which is deemed to fully replace the original entry summary) is only available to the filer of the PSC, not the filer of the original entry summary. Similarly, if a second PSC is filed, it fully replaces the previously filed PSC and full information is accessible only to the filer of the second PSC. The filer of the original entry summary or the filer of the previously filed PSC are notified that a new replacement entry summary has been filed by a PSC but do not have access to the new filing.

CBP has now determined to allow the original entry summary filer, and any subsequent PSC filer, full access to all entry summary data contained in a subsequent PSC. By running a report or query in ACE, any filer can see the complete entry summary data as modified by a PSC. When a PSC is filed, the filer of the original entry summary will be notified that it has been fully replaced by a PSC and will have full access to the new filing. Similarly, if a subsequent PSC is filed, the filer of the first PSC will be notified that a new replacement entry summary has been filed and will have full access to the new filing.

CBP notes that as a result of this change, all of the information in the latest version of the entry summary and all subsequent PSCs will be accessible to all filers. Importers should therefore not file a PSC under this test if they do not want the original entry summary filer or PSC filer to have full access to all information contained within a subsequent PSC that was filed by a different filer.

Data Elements that Cannot be Changed Via PSC. The following three additional data elements can no longer be changed via PSC: date of entry, bond and surety code.

Criteria and Rules for Filing a PSC. PSCs can no longer be made (a) on entries that have been protested and (b) when any merchandise covered by the original entry has been conditionally released and its right to admission has not been determined.

In addition, where a PSC results in a formal (type 01) entry being changed/corrected to indicate it is an antidumping/countervailing (type 03) entry, or if a PSC for a change/correction to a type 03 entry results in additional AD/CV duties due, the importer of record must deposit the associated AD/CV duties (or bond, if allowed) at the same time the PSC is filed. Failure to do so will result in rejection of the PSC, may result in liquidated damages, and may also subject the importer to penalties under 19 USC 1592 or the broker to penalties under 19 USC 1641. Previously, a failure to file the deposit of duties did not result in a rejection of the PSC.

Bonding and PSC Filing. To provide clarity on the subject of bonds and bonding as affected by a PSC, and to affirm that for purposes of this test the same bond and surety remain on an entry for which a PSC is filed, CBP is announcing the following bonding guidelines for this test.

- If, prior to a PSC filing, a bond is filed pursuant to 19 CFR 142.4(b) or 19 CFR 141.20 (as authorized by 19 USC 1485(d)), that bond will continue to be obligated for the entry. All obligations vesting under the original entry, prior to the filing of a PSC, remain vested and are not obviated by a subsequent PSC filing.

- If a PSC is filed and accepted by CBP, the bond obligated at the time of entry, as well as any subsequent replacement bonds or superseding bonds, remain obligated for the original entry and the entry summary against which the PSC was filed.

- New bond data will not be accepted through a PSC.

Rejection of a PSC. CBP retains the authority to reject any PSC that may be found to be incomplete or not in compliance with the applicable requirements. A PSC that has been rejected back to the filer may be re-transmitted within two business days. If there is no timely re-transmission, CBP will set the previously accepted entry for immediate liquidation, unless the liquidation of such entry has been suspended pursuant to statute or court order.

Deemed Liquidation. Consumption entries are deemed liquidated at a rate of duty, value, quantity and amount of duties asserted by the importer of record. For purposes of this test, CBP interprets the statutory phrase “deemed liquidation” to mean rate of duty, value, quantity and amount of duties asserted at the time of acceptance of the PSC.

New Definitions

- “Complete or full replacement” means the replacement of all data elements in an original entry summary filed in ACE with new data elements found in a superseding PSC. A complete or full replacement does not mean that the replaced data is null and void. Any obligations that vested under the original entry or entry summary remain valid. Obligations that vest subsequent to the replacement are attributable to the PSC. For example, when an original entry summary is filed outside the 15-calendar day time period for filing entry and liquidated damages are incurred, the filing of a PSC on that entry summary is deemed to replace the entry summary but does not obviate the liquidated damages that were assessed properly against the original filing.

- “Under CBP review” means the period of time when CBP is reviewing the data elements and supporting documents of either an original entry summary or PSC prior to its final disposition.

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