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CBP Updates Reconciliation Test to Add Post-Importation Claims Under Additional FTAs

Monday, May 13, 2013
Sandler, Travis & Rosenberg Trade Report

U.S. Customs and Border Protection is modifying its ongoing reconciliation prototype test to include the filing of post-importation preferential tariff claims under the U.S. free trade agreements with Oman, Peru, Colombia, Panama and South Korea. This change will be effective for claims filed on or after Aug. 12.

Reconciliation allows an importer to identify undeterminable information (other than that affecting admissibility) at the time an entry summary is filed and provide that information at a later date. The importer identifies the outstanding information by means of an electronic “flag” placed on the entry summary at the time the entry summary is filed and payment (applicable duty, taxes and fees) is made. Issues for which an entry summary may be flagged relate to value issues other than claims based on latent manufacturing defects, classification issues (on a limited basis), issues concerning value aspects of entries filed under HTSUS heading 9802, and issues concerning merchandise entered under NAFTA, DR-CAFTA or the FTA with Chile that are eligible for treatment under 19 USC 1520(d).

The flagged entry summary is liquidated for all aspects of the entry except those issues that were flagged. A reconciliation entry is used to provide the outstanding information at a later date, and the flagged issues are liquidated at the time the reconciliation entry is liquidated. Any adjustments in duties, taxes and/or fees owed are made at that time.

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