CBP Clarifies Earlier Messages on Preparing Electronic Invoices, RLF Entries
U.S. Customs and Border Protection (CBP) has issued an ABI administrative message addressed to remote location filers, in order to clarify two previously issued messages regarding procedures for preparing invoices under the electronic invoice program (EIP), and another previously issued message on remote location filing (RLF) entry and statement procedures.
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Deductions to Electronic Invoice Value Must be Actual Cost (Not Estimated Cost)
In two earlier administrative messages (Adm: 04-1500, Adm: 04-1623), CBP informed the trade of the correct procedures for preparing electronic invoices when the terms of sale were anything other than Free on Board (FOB) or Ex-Works (EXW) (such as CIF or CAF), as well as the correct procedures for preparing electronic invoices that include additions, deductions (or both) to the invoice value.
According to CBP, these previous messages do not replace or refute the policy set forth in Treasury Decision (T.D.) 00-20, which established that the proper deduction for freight, insurance, and other costs incident to international shipment must be the actual, rather than estimated costs.
(T.D. 00-20 further discusses the procedures to follow if these actual costs (i) are known, (ii) are unknown (basic approach), or (iii) are unknown (recurring situation and Reconciliation is an option).)
CBP states that filers reporting such deductions on entries, either through the EIP/RLF process or through the normal paper process, must report them in accordance with the policy set forth in T.D. 00-20.
Cost, Insurance, and Freight to a Named Destination
Cost and Freight to a Named Destination (also abbreviated as "C&F")
"System Downtime" for RLF Entries Only Refers to CBP's ABI/ACS Downtime
In another previous administrative message (Adm: 04-1899) regarding the deletion of RLF entries and proper statement procedures, CBP had stated, among other things, that the payment type for an RLF entry may be changed to a "1" (single payment) only as a contingency for system downtime, either on the part of the filer or CBP.
However, CBP now states that it is changing this policy to indicate that "system downtime" refers to CBP Automated Broker Interface (AB)I/Automated Commercial System (ACS) system downtime only, and does not include system downtime involving individual filers' systems.
(See ITT's Online Archives or 06/24/04 and 07/14/04 news, 04062415 and 04071415, for BP summaries of Adm: 04-1500 and 04-1623, respectively. See ITT's Online Archives or 04/10/00 news, 00040700, for BP summary of T.D. 00-20.
See ITT's Online Archives or 08/26/04 news, 04082605, for BP summary of Adm: 04-1899.)
CBP contact - John Leonard (202) 344-2687
CBP Adm: 04-2223 (dated 10/14/04) available at http://www.brokerpower.com/cgi-bin/adminsearch/admmsg.view.pl?article=2004/2004-2223.ADM
CBP Adm: 04-1500 (dated 06/22/04), available at http://www.brokerpower.com/cgi-bin/adminsearch/admmsg.view.pl?article=2004/2004-1500.ADM
CBP Adm: 04-1623 (dated 07/12/04), available at http://www.brokerpower.com/cgi-bin/adminsearch/admmsg.view.pl?article=2004/2004-1623.ADM
CBP Adm: 04-1899 (dated 08/24/04), available at http://www.brokerpower.com/cgi-bin/adminsearch/admmsg.view.pl?article=2004/2004-1899.ADM