CBP Issues Revised FAQ on Ruling Modification for Containers with Residual Chemicals

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12/13/2010

U.S. Customs and Border Protection (CBP) has issued a revised version of its Frequently Asked Questions (FAQ) document regarding containers considered to be instruments of international traffic (IIT) that are imported into the U.S. with residual chemicals. CBP posted a previous versionof the document on May 7, 2010. The FAQ document is designed to help the trade community understand modifications to CBP’s ruling governing the importation of ITTs with residual chemicals.

In July 2009, CBP issued ruling letter HQ H026715 to require all containers (and portable tanks) with chemicals, including empty containers, to be manifested and entered into compliance with all customs laws. HQ H026715 modified a previous ruling letter that had allowed reusable containers containing residual chemicals to be entered as ITTs, and as such were exempt from normal entry procedures.

The revised FAQ document contains four new sections (FAQs 4, 6, 7 and 9) and two expanded sections (FAQs 2 and 5).

New Sections:

• Importer Scenarios
• Current industry practice and measurement techniques have not been designed to measure “heel” residue remaining in a tank after loading and, therefore, may be less than accurate when attempting to gauge such small quantities.   How will CBP determine its enforcement posture when reviewing these transactions? 
• How does the importer determine value?
•  If the container is cleaned prior to return to the United States will CBP demand proof of the cleaning as a condition of release for an Instrument of International Traffic?

Expanded Sections

• How is an IIT, arriving from foreign with residue, manifested and entered?
• How will estimates for residual cargo be determined?

 

Key Highlights include allowing carriers to declare estimated quantities consistent with industry standards under certain circumstances and proposing that the industry develop documented baseline measures to serve as “reasonable care” measures when declaring “heel” in returning tanks. The FAQ document also describes five scenarios in which the U.S. company is responsible for filing the entry on residue of bulk products in tank truck or rail upon return to the U.S. after export.

To view CBP’s complete FAQ, click here. For further information, contact a Barnes/Richardson attorney.