CBP to Begin Enforcing HQ Ruling H026715 July 17, 2011

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February 28, 2011

U.S. Customs and Border Protection has updated its frequently asked questions document regarding containers considered to be instruments of international traffic (IIT) that are imported into the U.S. with residual cargo. CBP added a new question to the FAQs document indicating that CBP will begin enforcing HQ Ruling H02671 on July 17, 2011. The FAQs document also provides updated information regarding the Section 321 entry process for IIT shipments containing residual cargo valued at less than $200 that are entered using the Rail Automated Manifest System (AMS). CBP will begin enforcing the following requirements on July 17, 2011:

• Instruments of international traffic containing residual chemicals, cargo, goods, etc., must be manifested and entered in compliance with customs laws; and
• If qualified, shipments containing residual goods can be entered as American Goods Returned (AGR). 

Carriers Responsibilities: 

• Transmitting advance electronic cargo information for the residual cargo to CBP in advance of arrival in the U.S. (19 U.S.C. 2071 note);
• Providing CBP with a precise cargo description of the residue (e.g., “Residual cargo rail tank car/hopper car, etc. last contained…”) or the cargo’s Harmonized Tariff Schedule of the United States (HTSUSA) number to the 6-digit level in compliance with the Trade Act of 2002 implementing regulations;
• Providing CBP with an estimated quantity of the residual cargo.   Since the exact amount of the residual goods may not be known at the time the advance cargo information is required to be transmitted, the importer may estimate the amount when providing that information to the carrier for transmission to CBP.  Mathematical calculations, volume and weight readings, and historical data may all be tools used in estimating the amount of residue within a container. 
• Adhering to applicable regulations and requirements (EPA, DOT, FDA, or state/local); and
• Providing updates for the estimated quantity amounts to CBP if a more precise amount is determined. 

Importer Responsibilities: When a shipment (including IIT with residue) reaches the United States, the importer of record (i.e., the owner, purchaser, or licensed customs broker designated by the owner, purchaser, or consignee) will be responsible for:

·         Filing entry documents for the goods with the port director at the goods' port of entry.   19 CFR 141.4 provides that entry as required by 19 U.S.C. § 1484(a) shall be made of every importation whether free or dutiable and regardless of value, except for intangibles and articles specifically exempted by law or regulations from the requirements for entry.  Imported goods are not legally entered until after the shipment has arrived within the port of entry, and delivery of the merchandise has been authorized by CBP.  Pursuant to the CBP regulations at 19 CFR 143.22, the port director may require a formal consumption or appraisement entry for any merchandise if deemed necessary for import admissibility enforcement purposes, revenue protection, or the efficient conduct of Customs business;

• Maintaining a valid CBP bond type 3A in the name of the entity requesting release for all instruments of international traffic (19 CFR 113.66); and
• Retaining documentation establishing the basis for determining the value provided for the residual commodity.   A value must be declared and phrases such as “no commercial value” will not be accepted.

For further information, contact a Barnes/Richardson attorney.