CBP Expects to Discontinue Paper Courtesy Liq Notices for ABI Summaries on Sept 30

CBP Expects to Deploy New ACE Liq Reports Function on Sept 17

CBP states that this final rule is effective September 30, 2011, but will be implemented the first day on or after the date that CBP can provide importers with complete liquidation reports, including liquidation dates, electronically through the Automated Commercial Environment (ACE) portal. CBP will confirm the date of implementation through electronic notification.

(As CBP expects to install these new liquidation reports in ACE over the weekend of September 17, 2011, CBP sources believe the agency can adhere to the September 30 effective date. The reports are intended to be equivalent to the current paper notices, with minor exceptions (see below).

CBP states that importers that want to take advantage of the new ACE reports and currently do not have accounts, should enroll in the ACE Portal Account and familiarize themselves with the reporting system beforehand. Web-based training and help desk support is available for new ACE account holders here.)

All ABI Filers (Importers/Agents) to Receive Courtesy Notices via ACE Liq Reports

Courtesy notices of liquidation provide informal, advance notice of the liquidation date and are not required by statute.CBP currently provides an electronic courtesy notice to the ABI filer (importer of record or a broker that files as the agent of the importer of record) and a paper courtesy notice of liquidation to the importer of record.

With this final rule, 19 CFR 159.9(d)¹ will be revised to state:

Courtesy notice of liquidation. CBP will endeavor to provide importers or their agents with a courtesy notice of liquidation for all entries scheduled to be liquidated or deemed liquidated by operation of law. The courtesy notice of liquidation that CBP will endeavor to provide will be electronically transmitted pursuant to an authorized electronic data interchange system if the entry summary was filed electronically in accordance with 19 CFR 143 or on CBP Form 4333-A if the entry was filed on paper pursuant to 19 CFR 141 and 142. This notice will serve as an informal, courtesy notice and not as a direct, formal, and decisive notice of liquidation.

CBP Estimates Changes Will Save $3.8M Annually

CBP estimates that this rule will save the agency $3.8 million annually by eliminating 90%, or approximately 6.5 million, of the paper courtesy notices currently sent to importers. These savings include reduced postage, forms, and contract labor costs.

Highlights of CBP Responses to Comments

CBP received submissions from eight commenters on its 2010 proposed rule. Three commenters objected to CBP entirely eliminating the paper courtesy notice for ABI filers and four commenters requested that the courtesy mailing continue until CBP develops an alternative means of notifying importers of the liquidation of their entries. The following are highlights of CBP's responses to comments received:

Using Portal Will Facilitate Importer Access to Info, Allow for Better Monitoring

In response to comments that this rule would make importers of record reliant upon their brokers for liquidation information, presenting liability concerns if the broker should fail to provide importers with timely information, CBP noted that ACE is being reprogrammed to allow all importers of record to monitor liquidation of entries filed under their importer of record number(s) through the ACE Portal. Importers can establish an ACE Portal Account to access reports that will help them monitor entry filings for potential fraudulent entries and access liquidation dates for entries filed by any filer using the importer of record number belonging to the importer, regardless of the filer code used.

Even if the filer code is no longer active, the importer will be able to access the liquidation date associated with the importer’s importer of record number using the reporting tool in the ACE Portal.

Importers Will be Able to Obtain Info on Entries Past 5 Yrs Ago with ABI Query

Given data storage limitations, at this time, CBP notes that the ACE Portal only contains entry data for entries filed in the current CBP fiscal year and the previous four CBP fiscal years (which run October 1 through September 30). Importers needing liquidation dates for entries filed beyond that time period may contact their broker, who can obtain that information by running an ABI query.

As for antidumping (AD) and countervailing (CV) duty entries, depending on the entry date, importers may be able to check their status via a report in the ACE Portal. Note that contractual terms of liability between importers and brokers are not controlled by CBP.

ACE Reports to Contain Same Data as Paper Notice, With Certain Exceptions

The ACE report will contain the same data elements as the paper courtesy notice, however, the following data elements will not appear in the ACE report: 1) importer address; 2) series; 3) refer inquiries to; and 4) liquidation code.

The "refer inquiries to" data element will not appear in the ACE Portal report; however, the report will provide the name and code for the port of entry. Importers can refer any inquiries to the appropriate port of entry here.

Importers May Gain Limited Access to Liq Info in ACE Broker Reports

Additionally, whether or not the importer has an ACE Portal Account, the importer may gain limited access to a broker’s ACE Portal Account to obtain reports for entries filed by the broker using the importer of record number belonging to that importer, if the broker that filed the entry grants the importer such access.

(In addition, all importers of record with an ACE Portal Account can currently monitor the liquidation of their entries by using a currently available ACE reporting tool.)

(CBP has decided to adopt its March 2010 proposed rule without substantive change. See ITT's Online Archives or 03/16/10 and 06/08/10 news, 10031620 and 10060813, for BP summary of CBP's proposed rule and trade comments received on it.)

¹This final rule also makes conforming changes to 19 CFR 159.11 and 159.12 by removing the words "on CBP Form 4333-A". See final rule for details.

CBP Contact -- Laurie Dempsey (202) 863-6509

(USCBP-2010-0008, FR Pub 08/17/11)