ACS Reconciliation Program Update

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January 1999

Customs has recently issued notices to clear up public understanding of its ongoing ACS reconciliation prototype. The reconciliation prototype is designed to permit importers to flag items on an entry summary that may be subject to later adjustment. In theory, this will prevent Customs from having to reliquidate entries, reduce prior disclosures or hold entries open. Typical items that might be flagged are changes to valuation resulting from assists, royalties or indirect payments. In a notice dated December 28, 1998, Customs clarified several misconception about the reconciliation process. According to Customs:

• Reconciliation is NOT mandatory. Importers may still make prior disclosures, file protests, individual claims under section 520, request withholding of liquidation, and make changes to individual entry summaries on a per-entry basis.
   
• The exclusive means policy only applies to value & 9802 issues, not to classification or NAFTA eligibility.
   
• Reconciliation does not change any of the existing value laws. It's only a new mechanism to report changes after summary filing.
   
• If at the time of filing, the importer has a solid, legally determined value which they are willing to stand by, the entry DOES NOT NEED to be flagged for reconciliation. This is true whether or not there is a related party transaction, or prices based on other than 402(b) appraisement.
   
• The mere presence of assists does not make reconciliation required. Existing options to declare assists pro rata or on the first entry are still available, subject to all existing laws, regulations, and rulings. Of course, if the exact value of the assist is not known, reconciliation is a perfect avenue to show reasonable care and report the assist as its value becomes known.
   
• As Reconciliation is a Mod Act initiative, it is only available to ABI entries.
   
• Corrections made to entry summaries outside of the ACS Reconciliation Prototype must be made on a per-entry basis, with supporting data provided at the entry summary line level.
   
• Customs Port Directors may require such submissions of corrective data at six months, in accordance with Customs Regulations.
   
• Entries flagged for Reconciliation must be reconciled even if there is no change in duties. (For example, a change in the merchandise value changes on a group of duty-free entries must still be reconciled.)
   
• Reconciliation is a nationwide prototype. Although the type '09' Reconciliation entries are filed and processed at certain ports, the entries they cover may be filed anywhere in the U.S. Individual ports may not opt out of the prototype, and entries filed there are not exempt from the process.
   

According to Customs, over 900 importers have applied for participation and over 72,000 entry summaries have been under the program. Applications for participation are still being accepted.

Complete information on the ACS Reconciliation Prototype is available from the Customs Service web site.

Notice: http://www.cebb.customs.treas.gov

General Info: http://www.customs.treas.gov/imp-exp2/comm-imp/recon/index.htm

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