CBP Gives Ports Flexibility for TPL Textiles from Mexico that Are "on Hold", Etc.
U.S. Customs and Border Protection has issued a memo to its Field Offices to allow Tariff Preference Level textiles and apparel that are subject to an ACS "quota hold" to be conditionally released. While the port director still has the discretion to hold a truck in any situation deemed necessary, CBP states that this modification of policy will give the ports flexibility in allowing the free movement of vehicles used in transporting goods between Mexico and the U.S.
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Delays at Mexico border. CBP explains that ports on the Mexico border are holding trucks and drivers when TPL textiles from Mexico enter the U.S. as "live entry", which leads to additional private sector expense.
(In ACS, a "hold" is placed on a TPL when it is 85% (or more) filled. As these items are not under Absolute Quota but TPL quota, when the quota is filled a higher tariff rate is assessed rather than denying the goods entry into the U.S. The major concern is the tariff rate paid, not the denial of entry of the merchandise.)
Handbook edited to allow conditional release. CBP directs the ports to make a "pen and ink" change to their August 27, 2008 Quota/Visa Reference Handbook1 to replace the statement "CBP may not release a live entry until HQ Quota removes the hold.", with the statement "CBP may make a conditional release for TPL merchandise on hold by notifying the importer of record of a conditional release period of thirty days."
CBP can order redelivery if any higher duties not paid. According to CBP, 19 CFR 132.14 (a)4(A) (titled Special permits for immediate delivery; entry of merchandise before presenting entry summary for consumption; permits of delivery) states: "The port director may demand return to Customs custody of released merchandise in accordance with 141.113 of this chapter." Any failure to redeliver substantially increases the cost to the importer, should they not comply with the increased duties.
1This handbook was issued via QBT-04-900-I on August 27, 2008. The modified statement appears on page 14 in the QUOTA HOLDS section of the Quota Handbook.
QBT-11-535, dated 09/30/11, also available by emailing documents@brokerpower.com