CBP Issues 3rd Version of FAQ on Mandatory Advance Electronic Information Requirements for Rail Cargo

CBP Removes References to Lumber and Forest Products in FAQ 4D

In the third version of its FAQ, CBP has modified FAQ 4D by removing references to "forest products" and "lumber" to clarify that this question applies to merchandise in general.

(FAQ 4D previously referenced forest products and lumber, but a last sentence at the end of the FAQ stated that it could apply to other commodities, such as grain, in similar circumstances.)

Revised FAQ 4D - Providing Commercial Party Information on Rail Manifest When Consignee is Wholesaler, Etc.

CBP has revised FAQ 4D to read as follows (newly added text is denoted between "" and deleted text is denoted between "< >"):

Question: There are very significant volumes of merchandise <forest products> that moves by rail from Canada into the United States <(US)>, where the consignee is a <forest products> wholesaler. In these cases the wholesaler, as consignee, is not the physical end receiver of the cargo. Once the shipment has cleared CBP <Customs and Border Protection (CBP)> at the U.S. rail port of arrival the goods become U.S. goods; the wholesaler may resell them to another buyer <they may be resold by the wholesaler to another buyer>. In many cases the wholesaler has offices in the U.S., however, in some cases the wholesaler will only have a Canadian office that has the necessary permits and licenses to act as the U.S. consignee.

The Canadian shipper's bill of lading becomes the <US> CBP electronic rail manifest. <Forest product> Shippers may not have a U.S. consignee, other than the wholesaler at the time that the advanced rail manifest is created. However in all cases these Canadian shippers provide to trans-border rail carriers a U.S. facility to where the rail car shipment is destined at the time of manifesting. The U.S. destination facility may be a <forest product> reload facility where the reload facility will be the U.S. Care Of Consignee Party, or it may be a rail facility where the wholesaler consignee will be the Care Of Consignee Party at the rail facility. What commercial party information must be provided on the rail manifest to CBP in respect to consignee in these business scenarios and how should this information compare the customs broker's entry information?

Answer: When merchandise <forest products> is <are> shipped from Canada to the United States <US>. where the consignee on the entry (CF 3461) is a <lumber> wholesaler, the wholesaler can be shown as the consignee on the rail manifest, providing a U.S. facility at the manifested rail destination is included. In these cases the U.S. rail destination facility shown on the manifest can be a <lumber> reload facility (the reload facility will be shown as the Care Of Consignee party on the manifest), or a rail facility (the consignee will be shown as the Care Of Consignee party at the rail yard or rail team track).

The above will apply when the <lumber> wholesaler as consignee on the entry

(CF 3461) has an office address in the United States or when the <lumber> wholesaler as consignee has a Canadian address and is acting as the importer of record.

The consignee wholesaler's complete office address or corporate address and the U.S. destination facility complete address must be shown on the manifest.

At the time of entry release at the U.S. rail port of arrival, the broker's entry information in ABI will reflect the rail carrier's manifest in respect to commercial party information.

<Although this scenario specifies lumber, the concept would apply to other commodities, such as grain, that face a similar circumstances.>

(See ITT's Online Archives or 10/08/04 news, 04100815, for BP summary of CBP's earlier revision of its rail cargo FAQ, which added FAQ 4D.)

Revised Rail FAQ (dated 02/17/05) available athttp://www.cbp.gov/linkhandler/cgov/import/communications_to_industry/advance_info/rail_faq.ctt/rail_faq.doc