CBP Moving Forward with IIT Manifesting Requirements

September 20, 2012

In 2009 U.S. Customs and Border Protection (CBP) issued HQ Ruling H026715, which requires that Instruments of International Traffic (IIT) containing residual cargo must be manifested and entered. CBP subsequently delayed enforcement of this requirement and is now implementing a plan to enforce the requirement that IIT with residual cargo be manifested and entered. According to the Advisory Committee on Commercial Operations of Customs and Border Protection and Related Functions (COAC), CBP’s Office of International Trade, Regulations and Rulings is in the process of developing a Federal Register notice and will allow for comments. Prior to issuing the Federal Register notice, CBP plans to undertake an assessment to help gauge the amount of residual cargo currently not being reported by rail and truck carriers along the country’s northern and southern borders. CBP will use the outcome of a comparison between the results of “controlled” examinations and the manifests submitted by rail and truck drivers to help clarify the agency’s reporting standards.

CBP has also proposed plans to carry out a pilot program that will provide new procedures and guidance regarding how to manifest IIT that may or may not contain residual cargo. According to COAC, the pilot would use the following categories for IIT:

• IIT Empty/Clean - For IIT that have been cleaned and would therefore be allowed to enter the country under current processes for empty IIT.
• IIT Empty/Residue – No Commercial Value – For IIT with residue inside that will either be cleaned with the residue destroyed or refilled without cleaning for export. CBP would accept the carrier as the importer of record, which would allow for a release under Section 321 informal entry.
• IIT Empty/Residue – Commercial Value – For residue contained inside the IIT that has value. CBP will require an informal or formal entry, based on value, and will accept the carrier as the default importer of record unless another owner can be identified.

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