On December 12, 2016, U.S. Customs and Border Protection (CBP) published in the Federal Register a general notice announcing CBP’s plan to modify and clarify the National Customs Automation Program (NCAP) test pertaining to the processing of post-summary correction (PSC) claims to entry summaries that are filed in the Automated Commercial Environment (ACE), as well as the periodic monthly statement (PMS) test. The modifications made by the notice eliminate some requirements and liberalize certain requirements needed for the filing of a PSC making it easier for importers to file a PSC for additional entry types, and allowing for additional time to make a deposit for duties, fees and taxes owed. With regard to the PMS test program, the notice announces the time at which CBP considers a PMS as paid when filers use the Automated Clearing House (ACH) debit process. Except to the extent expressly announced or modified by the Federal Register document, all aspects, rules, terms and conditions announced in previous notices regarding the tests remain in effect. The modifications and clarifications are as follows:
1. In addition to Entry types 01 (Consumption—Free and Dutiable) and 03 (Consumption—Antidumping/Countervailing Duty (AD/CVD)), PSCs may be filed for the following additional entry types:
- 02—Consumption—Quota/Visa
- 06—Consumption—Foreign Trade Zone (FTZ)
- 07—Consumption—AD/CVD and Quota/Visa Combination
- 21—Warehouse
- 22—Re-Warehouse
- 23—Temporary Importation Bond (TIB)
- 31—Warehouse Withdrawal—Consumption
- 32—Warehouse Withdrawal—Quota
- 34—Warehouse Withdrawal—AD/CVD
- 38—Warehouse Withdrawal—AD/CVD & Quota/Visa Combination
- 51—Defense Contract Administration Service Region (DCASR)
- 52—Government—Dutiable
2. When filing a PSC for an entry of merchandise subject to quota, the date and time of submission will be considered the date and time of presentation of the merchandise to CBP. If a PSC is filed on an entry with merchandise subject to quota, and the quota is full or nearly full at threshold, the PSC filer must:
- The filer must follow the Entry Summary Business Rules and Process Document; and
- Within 24 hours of making the correction, contact Headquarters Quota Branch, regardless of whether the correction concerns merchandise subject to quota.
3. If a PSC is filed that increases the importer’s liability for duties, fees or taxes, the importer must deposit those additional duties, fees and taxes within three business days of submitting the PSC. No additional PSCs can be filed until those duties, fees and taxes are deposited.
4. Previously, a filer under the PSC test could not change a type 03 entry to a type 01 entry. The new document announces that a PSC may declare that a previously filed entry which stated that merchandise covered by that entry was subject to antidumping and/or countervailing duties is not, in fact, subject to such duties. For instance, a PSC may declare that a previously filed 03 entry type is corrected to indicated it is a 01 entry type.
5. The notice also announces a change in CBP policy which will allow an importer to deposit new or additional AD/CVD within three business days of submitting the PSC. However, no additional PSCs can be filed until the duties are deposited. Previously, when a PSC declared that an entry was corrected to indicate it was subject to AD/CVD, or a greater amount of AD/CVD was owed, and those duties were not deposited at the time of submitting the PSC, CBP would reject the PSC.
6. On June 24, 2011, CBP announced in the Federal Register (76 Fed. Reg. 37136) that one of the data elements that may not be modified via a PSC is the NAFTA indicator. The notice clarifies that such prohibition applies not only to a post-importation NAFTA claim under 19 U.S.C. 1520(d), but also to a claim made under other free trade agreements covered by 19 U.S.C. 1520(d).
7. On November 19, 2013, CBP published a notice in the Federal Register (78 Fed. Reg. 69434) that stated that a PSC cannot be filed when any merchandise covered by the original entry has been conditionally released and its right to admission has not been determined. This restriction was overly broad and prevented importers from filing a PSC because all goods are conditionally released and their admissibility is not legally determined until liquidation. This notice announces that this restriction does not prevent the filing of a PSC within the time periods allowed as long as all other requirements and limitations are met.
8. Finally, the notice announces that CBP will consider a PMS as paid, in the event the importer uses the Automated Clearing House (ACH) debit process, when CBP receives confirmation from the Treasury Department that funds are available and transferred to CBP from the financial institution designated by the importer for payment of the ACH debit authorization. Prior to this modification, CBP considered a PMS as paid when CBP transmitted the debit authorization to the designated financial institution. See 69 Fed. Reg. 5362 (February 4, 2004). This change will result in a delay of approximately two working days in the time that CBP uses to consider a PMS as paid. It is important to note that this modification applies only to importers who participate in the test program. For all other importers, the current regulation, 19 C.F.R. 24.25(c)(4), still applies which means CBP will consider a statement as paid upon acceptance of the ACH debit authorization.
The changes made by the notice are effective January 14, 2017.
