Industry News
Customs Announces Post Entry Amendment Prototype
TweetJanuary 2001
The November 28, 2000 Federal Register announces Customs' test of the post entry amendment program. Proposals for this program had previously been published by Customs and this notice largely conforms with those proposals. This test program will allow importers to amend already filed entry summaries prior to liquidation by reporting changes to the entry on either an individual or quarterly basis. Participation in this program is voluntary and Customs will continue to accept Supplemental Information Letters (SILs) for the modification of entries. Customs does not require an application to participate in the test. Public comments relating to this notice are invited by Customs and must be received on or before December 18, 2000, and the test will commence no earlier than December 28, 2000. The test program will run for approximately one year.
The new procedure is intended to reduce the burden on both importers and Customs as a result of the introduction of SILs, and this process may eventually replace the SIL policy. As previously proposed by Customs, this test procedure will allow some errors to be reported on a quarterly basis with other errors being corrected on an entry by entry basis.
Entry-by-Entry Amendments
Under this new test program, individual amendment letters must be filed for:
(2) non-revenue related statistical information errors that must be reported to the Census Bureau.
These letters can be filed at any time prior to liquidation of the one or more entries it covers. If it agrees, Customs will unset the liquidation cycle and issue a "change liquidation." Customs will then issue either a refund or a bill in the amount it determines to be owed. If Customs disagrees, it will issue a "no change" liquidation. Customs will accept letters filed after liquidation, but will treat them as protests under 19 U.S.C. 1514.
For non-revenue related errors, whether a test participant must file an individual amendment letter for statistical information errors depends on whether the Census Bureau, under its rules, requires reporting of the corresponding corrections. Today's Federal Register notice sets forth guidelines for determining when statistical information errors require the filing of an individual letter or quarterly tracking report. If the modification effects merchandise in any of the following four categories it should be carefully reviewed for eligibility for inclusion in the quarterly tracking report: (1) quota merchandise, (2) non-quota textile merchandise of Chapters 50 through 65, (3) merchandise subject to a Voluntary Restraint Agreement, and (4) all other merchandise (generally requiring a line item value of $10,000 or more). Please see the federal register notice for more details in this area.
Quarterly Basis Amendments
Pursuant to the new procedures, a quarterly tracking report must be used to report:
(2) non-revenue related statistical information errors that need not be reported to the Census Bureau.
For each correction being reported, Customs will require several items (i.e., the record number, entry number, filer, port, importer number, reason code, reason description, narrative description, and the duty difference). Information must be submitted through Customs' database within 15 calendar days from the last day of the quarter. Upon evaluation, Customs will determine whether the amendments are accurate, but it will not unset the liquidation cycle. Customs will exercise its administrative exemption authority and disregard duties, taxes, and/or fees found owing in an amount of less than $20. The amendments may be taken into account when Customs, in due course, liquidates the reported entries.
