U.S. Customs and Border Protection (CBP) will be implementing several changes to the reconciliation entry program as part of the conversion to the Automated Commercial Environment (ACE).
These changes will be deployed in January 2017 on a date yet to be determined by CBP. CBP will no longer enter a blanket flag in a participating importer’s profile, will no longer require an application to participate, and will require the electronic transmission of data that was previously submitted via a spreadsheet.
Importers currently participating in the reconciliation program should take immediate action to update their brokers regarding their entry summary flagging requirements.
For importers that require all entries to be flagged for reconciliation CBP previously set a blanket flag within its system. That flag eliminated the need for the broker to manually flag every entry summary at the time of transmission. These importers should now provide the instruction to their brokers to set their system profile to flag all entries.
For importers that require certain entries to be flagged (but not all), now is a great time to revisit those flagging criteria and communicate the requirements to all of their brokers.
Importers that wish to begin participating in the reconciliation program will no longer need to apply to CBP. However they will be required to have a continuous bond on file with a reconciliation bond rider.
Changes to the submission of the reconciliation entry will include the complete automation of thedata transmission. This eliminates the requirement to submit the line item spreadsheet as a paperhardcopy and a soft copy on disc.
Some importers that have historically used the Importer Trade Activity (ITRAC) reports to identifyentries flagged for reconciliation and to have visibility to the line-item level detail for eachentry. Since CBP plans to eliminate ITRAC reports, these importers may wish to file in January2017 a request for their calendar year 2016 data. Importers should prepare to utilize the reportsin the ACE portal.
If you are participating in the reconciliation program, please be sure to contact your Schenkerbrokerage office by the end of December 2016 to provide entry summary flagging instructions.
Last modified: 09.12.2016
Changes to CBP Reconciliation Program
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The Bioterrorism Act and Food Safety Modernization Act requires all domestic and foreign facilities that manufacture, process, pack, or hold food for human or animal consumption in the U.S. to register with the U.S. Food and Drug Administration (FDA).
FDA Food Facility Registration
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Effective June 15, 2016, ACE will be the only authorized system for filing electronic entry data for U.S. Food and Drug Administration for most entry types.
For entry types other than quota and bonded warehouse entries, the legacy ACS will no longer be available for electronic entry transmission with FDA data. Mandatory FDA entry filing in ACE is a prerequisite to CBP’s ability to convert quota and bonded warehouse entries to the ACE system. CBP plans to convert those entry types to ACE on July 23, 2016.
FDA data requirements in ACE differ from what has been filed for many years in ACS. To facilitate data collection from its clients, Schenker developed templates for each of the eight FDA programs. If your shipments are subject to FDA import entry requirements and you are not yet preparing for this conversion, please immediately contact your Schenker brokerage office to discuss the new data that must be transmitted for cargo release.
Conversion to ACE – Mandatory Use of ACE for FDA and Quota Entries
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Last modified: 20.07.2016
On June 17, 2016 CBP announced changes for the enforcement of Importer Security Filing (ISF) requirements. Under the ISF rule, importers must submit cargo data at least 24 hours prior to carriers loading vessels destined to the U.S.
Under the ISF rule, importers must submit cargo data at least 24 hours prior to carriers loading vessels destined to the U.S. While ISF has been required for many years, CBP has taken a flexible, informed compliance approach in its enforcement of the rule. It has been tightening its enforcement over time and this newest announcement continues that trend. Importers should be aware of the following changes for shipments on the water on or after June 30, 2016.
CBP ports are no longer required to follow the “three-strike” approach with informal warnings.
Liquidated damage (LD) claims for ISF-10 violations will be initiated at the port without the requirement to send to headquarters for review.
Ports are guided to issue LD claims within 90 days of discovery of a violation, but are not precluded from issuing a claim beyond that time.
There is no change to the port option of holding cargo for ISF non-compliance. At its discretion CBP may hold cargo instead of, or in addition to, initiating an LD claim. Importers are legally responsible for the accuracy and timeliness of their ISF filings, regardless of whether a customs broker or other intermediary performs the actual filing. Liquidated damages for non-compliance of Importer Security Filing (ISF-10) regulations are set at $5,000 per transmission, with a maximum of $10,000 per shipment for late, incomplete, or inaccurate filings. To mitigate the risk of non-compliance, an importer must actively monitor its compliance rates through the use of ISF Progress reports. For non-compliant activity the importer must engage its vendors in resolving barriers to compliance.
If you have any questions regarding these changes and how Schenker can assist in your compliance efforts, please email the ISF Center at email@example.com or call us at 602-458-6100.
CBP Enters New Phase of ISF Enforcement
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