CBP filed its status report early today, March 31, in Atmus Filtration to the CIT. It’s an important one.

Here are some key points regarding what Consolidated Administration and Processing of Entries (CAPE) “Phase 1” will and won’t be doing:

•  CAPE Phase 1 will be limited to entries that “are either unliquidated or for which the 90-day voluntary reliquidation period under 19 U.S.C. § 1501 has not expired,” despite Judge Eaton’s latest amended order extending relief to finally liquidated entries. However, CBP says that it “intends to expand CAPE to process finally liquidated entries in a subsequent phase of development.”

•  CAPE Phase 1 will accept entries where the liquidation status is “Suspended,” “Extended,” or “Under Review,” as well as warehouse and warehouse withdrawal entries, but in these instances, refunds will be provided in the normal course upon liquidation, rather than immediately. This includes entries subject to AD/CVD.

• The following categories of entries will not be accepted for CAPE Phase 1: entries flagged for reconciliation; entries designated on a drawback claim; entries covered by an open protest; entries not filed in ACE/entries without a liquidation status in ACE; entries subject to AD/CVD for which Commerce has issued liquidation instructions that are pending liquidation under 19 U.S.C. § 1504(d).

• “CBP will take up to 45 days from its acceptance of a CAPE Declaration to review and liquidate the validated entry summaries identified on the CAPE Declaration, unless there is a compliance concern necessitating further review.”

For subsequent phases of CAPE, CBP says it expects to develop the following functionalities, among others: “Enhanced tools and validations to ensure compliance”; “Tools to further streamline revenue enforcement in situations in which there is an outstanding bill for non-IEEPA duties associated with an entry included on a CAPE Declaration”; “The capability to process entries for which liquidation is final”; and “The capability to process non-[ABI] entries where no entry summary lines exist.”

A few key takeaways. First, none of this changes our advice to continue protesting and consider filing a refund suit. Nothing in the status update addresses the protestability issue or whether suit is required. And although entries with an open protest won’t be covered in Phase 1, neither will finally liquidated entries. It is unclear whether importers can withdraw their protests and expect to be able to take part in CAPE Phase 1.

Second, this update suggests that importers should wait until after the 90-day voluntary reliquidation window to protest, just in case CAPE comes out in time for CBP to process these entries. CBP claims that if there’s at least 10 days left on the 90-day voluntary reliquidation clock, it can process them in time. However, waiting to file can mean missing timely protests altogether.

And third, CBP’s status update makes clear that it will be spot-checking entries for compliance issues and seeking offset on refunds. Again, another reason for clients to make sure that their entries are in order and that they have supporting documentation for their classification, value, COO, etc.

The NCBFAA Customs Committee and Counsel of Sandler, Travis & Rosenberg, P.A., will continue to monitor the CIT and CBP actions related to the IEEPA refunds and provide updates to our members, as available.

Lately, CBP has been issuing penalties and warnings to Customs Brokers and Trucklines (carriers) for their reporting of incorrect or inaccurate manifest quantities. We tender this information to you in hopes that you will assist your carriers or work with them to provide usable quantities with which the can use to prepare their inward cargo manifest.

Pallets / Skids:  Both Pallets and Skids are not normally a usable quantity type for a carrier to use when making their inward cargo manifest with CBP.  In fact the word “Skid” is frequently mistaken as another explanation for a pallet.  But by CBP laws and regulations the proper usage of the word SKID is when you have a item, machine or component physically and somewhat permanently mounted and adhered to the skid to assist in the machines transportation.

By law carriers are required to manifest their quantity at their LOWEST EXTERNAL PACKAGING UNIT.  On the attached memo our office prepared for you use and instructions, and within the attached ACE e-manifest guidelines you’ll readily see reference to the proper way for a carrier to report their quantity such as:

240 cases containing 2400 cans on 5 pallets:  In this scenario carriers are to report 240 cases (not 5 pallets, and not 2400 cans).  Carriers need to manifest at the lowest external packaging count.

Another Example:

A shipment consists of 15 loose pieces of machinery, 1 crate of machinery parts, and 5 packages of miscellaneous machinery parts. Our suggested manifesting quantity we feel the carrier should report to CBP is; 15 + 1 + 5 = 21 packages.

Carrier Manifesting Assistance Memo

ACE Truck Manifest User Guide

We ask that you be aware of this new regulation.  We have posted a couple of media documents within this posting to help you overcome the regulatory requirements.  In short it appears that certain people and companies, exporters, and importers must soon deal only with products that are certified free of formaldehyde emitting wood components.  There are many mandates for record-keeping of files, documentation, and certificates supplied to you from your vendor or supplier.  Additionally, we recommend that you supply our office with a copy of an certificates that you receive – so that we can maintain your certifications with your client customer records.  Of course, there is additionally  the requirement that with each importation the importer / exporter must provide the broker with a a properly completed Toxic Substance Control Act (TSCA) form.

Our office is certainly not the expert on this new Regulation, but we’ve posted two documents within this posting to further assist you.

Formaldehyde Emissions – FAQ / EPA

Federal Register Publication – Formaldehyde Emissions – 2016-27987

TSCA Section 13 Certification Title VI

• Country of Origin of the goods,
• Currency used,
• Shipping Weight,
• Tax number of the U.S. consignee or buyer
• Dollar amount of any assists applicable (assists is a CBP regulatory phrase)
• Dollar amount of any freight costs that might be included in the value
• If duty and brokerage is prepared and included, a statement to that fact
• Name of the U.S. Broker to notify for entry
• Port of entry / arrival

A Pro-forma invoice can be used in lieu of the actual commercial invoice (when the commercial invoice is not available).  The pro-forma invoice needs to represent all of the facts of the commercial invoice.

Even if you’re attempting to make an informal entry direct with U.S. Customs (not utilizing your broker) you must always have some invoice to present to the CBP Officer.  Failing to provide CBP with some form of invoice removes a valuable tool they would need to do their job.

Try to remember that you’ll always need some invoice for CBP (Customs) when you ship goods to the USA.