CBP to Implement Policy/Reporting Change on October 1, 2004 for Ultimate Consignee at Time of Entry/Release

According to CBP, the below policy change and reporting requirements are effective October 1, 2004 and are necessary to correct weaknesses in the current CBP policy pertaining to the identification of the Ultimate Consignee at the time of entry or release and to unify entry release and entry summary Ultimate Consignee procedures.

(These weaknesses include inaccurate historical Ultimate Consignee data and the inability to effectively target arriving shipments for security and enforcement examinations.)

Highlights of this CBP memorandum are transcribed below:

Identification of the Ultimate Consignee at Time of Entry or Release

CBP states that this October 1, 2004 policy change will incorporate the following:

Formal entries (only ID number accepted) - The Ultimate Consignee must be identified with an appropriate Ultimate Consignee identification number, and may be not identified with an ABI transmission of the Ultimate Consignee's name and address.

If the Ultimate Consignee has not been issued an appropriate identification number as listed above, he/she must obtain one before his/her entry can be processed by CBP. If the Ultimate Consignee identification number is not provided at time of entry or release, entry of the merchandise shall be denied.

Informal entries (paperless not allowed if name and address used) - The Ultimate Consignee may be identified by an appropriate identification number (as noted above), if one is provided by the entry filer.

At a minimum, the Ultimate Consignee must be identified with the Ultimate Consignee's name and address, which can be provided to CBP through either an ABI transmission or through other available means to include manual processing methods. (Note: In most cases the address will be a US address not a foreign one.)

If a name and address is provided for the Ultimate Consignee (rather than the Ultimate Consignee identification number), CBP states that the entry will not be allowed to be paperless and entry documents will be required for release.

If the Ultimate Consignee is not identified by either an appropriate identification number or a name and address at the time of entry or release, entry of merchandise shall be denied.

Consolidated entries (ID numbers required for each $2000 portion). The Ultimate Consignee for each portion of a consolidated entry that equals or exceeds $2,000 in value must be identified with an appropriate Ultimate Consignee identification number.

If the Ultimate Consignee does not have an appropriate identification number, he/she must obtain one before his/her entry can be processed by CBP.

If the Ultimate Consignee identification number is not provided at the time of entry or release, entry of merchandise shall be denied.

For portions of a consolidated entry that are valued at less than $2000, the Ultimate Consignee must at a minimum, be identified with the Ultimate Consignee's name and address, but may also be identified with an appropriate Ultimate Consignee identification number if provided by the entry filer.

If the Ultimate Consignee is not identified by either the name and address or an appropriate identification number at the time of entry or release, entry of the merchandise shall be denied.

Important ACS limitations - Due to ACS limitations, when consolidate entries are certified from summary data at the time of entry or release, the portion of the consolidated entry with the highest value must be included with the ABI transmission, while the Ultimate Consignees associated with the remaining portions of the consolidated entry must be identified on a separate list that must be attached to the entry package.

Reporting Format Policy for U.S./Foreign Ultimate Consignee Number

CBP states that is reporting format policy for the Ultimate Consignee Number will be amended as follows, effective October 1, 2004:

U.S.- Based Ultimate Consignee. The appropriate Ultimate Consignee identification number for U.S.-based Ultimate Consignees is defined as either an Internal Revenue Service (IRS) employer identification number or a Social Security number (SSN).

U.S.-based Ultimate Consignees are not to be identified with a CBP-issued Ultimate Consignee identification number.

If a U.S.-based Ultimate Consignee does not have either an IRS employer identification number or a SSN, he/she must obtain one for any shipments that require the Ultimate Consignee to be identified with the appropriate Ultimate Consignee identification number.

If the appropriate Ultimate consignee identification number is not provided at the time of entry or release, entry of the merchandise shall be denied.

Foreign-based Ultimate Consignee. CBP's states that in the limited instances in which imported merchandise is consigned to an Ultimate Consignee that is not based in the U.S., the Ultimate Consignee must be identified with a CBP-issued Ultimate Consignee identification number for formal entries, or in the case of informal entries (including consolidated entry lines with a value less than $2000) may be identified with either a CBP-issued Ultimate Consignee identification number or the name and address of the foreign-based Ultimate Consignee.

CBP-issued Ultimate Consignee identification numbers are only to be used to identify foreign-based Ultimate Consignees and must be based on the name and address of the foreign-based Ultimate Consignee. If the foreign-based Ultimate Consignee does not have a CBP-issued Ultimate Consignee number, he/she must obtain one before his/her entry can be processed by CBP. If the appropriate CBP-issued Ultimate Consignee identification number is not provided at the time of entry or release, entry of the merchandise shall be denied.

(CBP gives the following definition of ultimate consignee at time of entry or release:

1. the ultimate consignee at the time of entry or release is defined as the party in the U.S., to whom the overseas shipper sold the imported merchandise; or
2. If at the time of entry or release, the imported merchandise has not been sold, then the Ultimate Consignee at the time of entry or release is defined as the party in the U.S. to whom the overseas shipper consigned the imported merchandise; or
3. If the merchandise has not been sold or consigned to a U.S. party at the time of entry or release, then the Ultimate Consignee at the time of entry or release is defined as the proprietor of the U.S. premises to which the merchandise is to be delivered.

In addition, CBP notes that Customs Directive 3550-079A contains the current Ultimate Consignee reporting policy for entry release, while Customs Directive 3550-061 (later amended by Adm: 92-0717) contains the current Ultimate Consignee reporting policy for (both formal and informal) entry summary.

Both Customs Directives are available at http://www.cbp.gov/xp/cgov/toolbox/legal/directives/, while the administrative message is available at http://www.brokerpower.com/cgi-bin/adminsearch/admmsg.view.pl?article=1993/1992-0717.ADM)

CBP' s Memorandum (not yet posted to CBP's website or issued as an administrative message) has been posted to the following broker association web site (and summarized or discussed on numerous other broker and trade web sites) http://www.fcbf.com/NewsFlashDetail.asp?NewsID=60