New Policy on Rejected Entries

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March 2001

Customs is adopting new guidelines on the acceptance and rejection of entry summaries. Under this new policy, Customs will no longer reject entries that contain certain ministerial errors. Instead Customs will simply cross out the date stamp and return the entry to the sender as if it had never been filed. This policy will apply to "live entries" as well as entries subject to immediate delivery procedures.

ENTRIES TO BE RETURNED

Errors resulting in the return of an Non-ABI or Non-Statement Entries include:

• Non-negotiable checks,
• No duty or check attached, (unless the broker attaches a letter stating the entry summary is being filed without payment),
• Entry summary submitted with an invalid entry number,
• Missing or incorrect "Block 39 Summary,"
• ANY difference (no de minimis) between the entry summary total dollar amount of estimated duties/taxes/fees and the amount of the check(s).

Under Customs regulations entry summaries must be submitted to Customs within 10 working days of the date of entry or immediate delivery (ID) release. Re-submissions of returned entries are subject to liquidated damages (late file) if submitted with proper payment after the 10 working day filing period for the entry summary. If an entry is returned to the filer the filing date will be voided. Under the proposal, Customs will not credit the importer with the time that the entry was held by Customs prior to its return, and the 10-day entry filing clock will continue to run. In order to avoid late filing charges, the filer must correct the entry and re-file with the original 10-day filing window. In other words there is no 48 hour window to correct the information without affecting the timeliness of the entry filing for returned entries as there is for rejected entries.

Customs will "return," and void the presentation date of, all entries on a statement submitted under statement processing procedures if the check does not match the statement amount. Liquidated damages may be assessed against all entries on the statement if the entries are not re-presented to Customs within the 10 day window.

This policy seems to indicate that, unlike current reject procedures, the time that the entry is in Customs' possession will count against the 10 working day period. Therefore, if an entry is filed on the 9th day and Customs returns it to the filer on the 11th day the importer would be unable to avoid liquidated damages. The policy does not require Customs to "return" the entry within any specified time limit.

ENTRIES TO BE REJECTED

Entries will be rejected for limited reasons. Under the new policy, Customs will reject entries, and allow 48 hours for correction, under the following conditions:

• Entry summary not signed,
• Single entry bond missing or invalid,
• Missing ABI/A, ABI/S or ABI/N indicator in Block 2 of the CF 7501 on a Non-ABI entry summary,
• Invalid/Incorrect entry type code, bond or surety information, importer or consignee number, or reference number
• Missing total enter value.

The rejection policy for "Import Specialist Rejects" is unchanged from Customs prior position. An Import Specialist may reject an entry for the following reasons:

• Missing or impossible HTSUS number or duty rate,
• HTSUS incompatible with country or origin,
• HTSUS incompatible with unit value;
• Incorrect or absent AD/CVD information,
• Census error conditions that cannot be easily resolved,
• Certain missing documentation.

Please do not hesitate to contact Barnes, Richardson & Colburn with any questions on comments. Written comments on this new policy will be accepted for a period of two weeks (March 16, 2001, through March 30, 2001) and should be sent via email to: donald.f.yando@customs.treas.gov