Importers No Longer Required to Have ACE Portal Account for Periodic Monthly Statement, C-TPAT Certified Importers Automatically Eligible, Etc.

In brief, this general notice removes the requirement that importers first establish ACE Portal Accounts in order to deposit estimated duties and fees as part of PMS; announces the creation of ACE Non-portal Accounts for importers; provides for Customs-Trade Partnership Against Terrorism (C-TPAT) certified importers who do not have Portal Accounts to be automatically considered Non-portal Accounts eligible to participate in PMS; and provides that C-TPAT certified importers who hold ACE Portal Accounts and are not taking advantage of PMS estimated duty and fee payments to do so directly with CBP, or through a customs broker with an ACE Portal Account.

Removal of ACE Portal Account Requirement for Importer Participation in PMS

In order to encourage maximum participation, CBP will no longer require that importers first establish ACE Portal Accounts in order to deposit estimated duties and fees as part of PMS.

Portal Account requirement removed; Importers can now be Non-portal Accounts for PMS if use brokers with Portal Accounts. CBP states that it is making this change as it recognizes that some importers, while wishing to deposit estimated duties and fees on a monthly basis, would prefer to designate a broker to perform this role, and may choose not to access their data via the Portal. As such, CBP has decided that in lieu of the requirement to establish an importer ACE Portal Account prior to participation in periodic monthly payment, CBP will only require an importer to establish a Non-portal Account.

CBP Outlines Process for Importers Wishing to Establish a Non-portal Account

In this general notice, CBP outlines the process importers must follow should they wish to establish a Non-portal Account. According to CBP, at this point during the ACE test, Non-portal Accounts will only be afforded to importers. Importers desiring to participate in ACE through Non-portal Accounts will not be required to meet the application requirements outlined to date, but will be required to provide information related to identity (unless they are C-TPAT certified importers, automatically becoming ACE Non-portal Accounts, as described below).

Bonding requirement. CBP states that importers establishing Non-portal Accounts will be eligible to participate in the PMS test and pay estimated duties and fees on a monthly basis. In order to participate in the PMS test consistent with the provisions of this general notice, a Non-portal Account importer must have its duty and fee deposits guaranteed by a continuous basic importation bond. Ultimately, it is CBP's intention to permit the filing of single transaction bonds for those importers wishing to participate in the payment of estimated duties in the PMS test. However, at this stage in the test development, in order to ensure that all Non-portal Account participants receive some fiscal scrutiny, continuous bonds will be required.

Importers wishing to be Non-portal Accounts must submit 5106, P/A to broker who is a Portal Account.CBP explains that in order to participate as a Non-portal Account, a party must submit to its customs broker a CBP Form 5106 (Notification of Importer's Number or Notice of Change of Name or Address) with accurate information. Brokers with Portal Accounts are eligible to establish Non-portal Accounts on behalf of their clients. Brokers who accept CBP Form 5106 information from a client and submit that information to CBP in order to establish a Non-portal Account on behalf of that client should exercise due diligence to ensure that all information provided by the client that is used in the processing of merchandise is accurate.

Under the procedures for establishing Non-portal Accounts for the test, the broker shall be obligated to maintain an accurately completed power of attorney (P/A) on file on behalf of that importer. The broker will be required to exercise responsible supervision and control over customs business as required by the provisions of 19 USC 1641. Upon completion of the aforementioned requirements, holders of Non-portal Accounts may participate in PMS via a broker with a Portal Account.

Certified C-TPAT Importers without Portal Accounts are Automatically Non-portal Accounts

According to CBP, all importer certified partners in C-TPAT who do not have Portal Accounts are automatically considered to be ACE Non-portal Accounts eligible to participate in the PMS test. CBP notes that importers applying to participate in C-TPAT, among other things, are required to be active U.S. importers or non-resident Canadian importers into the U.S., have a business office staffed in the U.S. or Canada and have active U.S. importer of record ID(s) in any of the following formats: (1) U.S. Social Security Number; (2) U.S. Internal Revenue Service assigned ID(s); or (3) CBP assigned Importer ID.

C-TPAT certified importers not required to follow Non-portal Account process. Accordingly, inasmuch as the above-listed information is provided to CBP in the application process, C-TPAT certified importers automatically designated as Non-portal Accounts are not required to follow the Non-portal Account process described in this general notice. Also, brokers with C-TPAT clients will not be required to submit the completed CBP Form 5106. Necessary powers of attorney must be maintained.

C-TPAT Non-portal Accounts must use a broker with an ACE Portal Account. In order to apply for PMS participation, the C-TPAT Non-portal Account must use a broker with an ACE Portal Account to designate to CBP the Non-Portal Account as a C-TPAT certified importer and provide CBP with the importer of record IDs that have been previously designated to C-TPAT.

C-TPAT importers are encouraged to apply to become ACE Portal Accounts as described in two general notices published in the Federal Register on May 1, 2002, and February 4, 2004. (See ITT's Online Archives or 05/02/02 and 02/05/04 news, 02050205 and 02040505, for BP summaries of these general notices.)

C-TPAT Portal Accounts Currently Not Participating in PMS

According to CBP, C-TPAT Certified Partners who hold ACE Portal Accounts and are not taking advantage of PMS estimated duty and fee payments may do so directly with CBP, or through a customs broker with an ACE Portal Account, by providing to CBP those U.S. importer of record IDs that are part of the Portal Account and have been previously designated to C-TPAT. No further participation requirements need be met.

Effect of this General Notice on Previously Announced ACE Requirements

CBP adds that all requirements and aspects of the ACE test discussed in previous general notices are hereby incorporated by reference into this notice and continue to be applicable, unless changed by this general notice. Examples of such requirements and aspects are the rules regarding misconduct under the test and the required evaluation of the test (both of which are detailed in the above-mentioned May 1, 2002 and February 4, 2004 Federal Register notices).

During the testing of the PMS process, CBP is suspending provisions in 19 CFR Parts 24, 141, 142, and 143 pertaining to financial, accounting, entry procedures, and deposit of estimated duties and fees. Absent any specified alternate procedure, the current regulations apply.

All of the terms of the test and criteria for participation therein, as announced in certain previous general notices cited by CBP in this general notice continue to be applicable unless changed by this notice. (See ITT's Online Archives or 06/19/02, 09/09/04, 02/02/05, 08/08/05, and 09/23/05 02061905, 04090905, 05020205, 05080805, and 05092310, for BP summaries of earlier CBP general notices on ACE test, in addition to the above-mentioned May 1, 2002 and February 4, 2004 general notices.)

CBP Contact - Michael Maricich (703) 921-7520

CBP General Notice (FR Pub 10/24/05) available athttp://a257.g.akamaitech.net/7/257/2422/01jan20051800/edocket.access.gpo.gov/2005/pdf/05-21165.pdf