Update on Additional C-TPAT Benefit of Reduced Container Demurrage, Etc. (CBP Chicago Issues Its Instructions)
In April 2007 it was reported that U.S. Customs and Border Protection was developing procedures to give Customs-Trade Partnership Against Terrorism (C-TPAT) members an additional benefit designed to reduce container demurrage.
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(CBP sources have previously stated that this benefit would not be offered at all ports and those C-TPAT members interested in receiving this benefit should contact the ports through which they import. Sources added that each port is administering this benefit in its own way due to operational limitations.)
Additional Benefit for Compliance Measurement Exams
The following are the Port of Chicago's instructions for C-TPAT-certified importers wishing to take advantage of this additional benefit, as published in its July 9, 2007 Pipeline.
For C-TPAT certified importer entries designated for Compliance Measurement (random) exams, the importer of multiple container shipments will have the opportunity to decide to:
keep all containers under the same bill(s) of lading at the terminal until the selected container is examined and the entry is released, or
remove all non-selected containers from the terminal and hold them with the sealintact until release is obtained.
In order to qualify for the second option, the C-TPAT-certified importer must provide the Port of Chicago (either with its entry information or via the Request for Exam Information form sent to the filer) with a specific statement expressing its decision to have the containers removed from the terminal and stating that it will hold all the containers associated with the entry intact pending receipt of the electronic release. (See Pipeline for statement.)
The Port of Chicago notes that the statement will allow for either the licensed customs broker or importer/owner to sign, with the signer accepting responsibility for any containers compromised in any way or delivered without CBP authorization. Any employee of the licensed customs broker signing the statement must also include a letter from the licensed broker stating that he/she is authorized to sign on behalf of the licensed broker.
The Port of Chicago emphasizes that these procedures are for C-TPAT-certified importers only (importers are only required to be C-TPAT certified, not C-TPAT validated), and previous practices regarding the conditional removal of containers from CBP custody have been discontinued.
(The Pipeline also announces an additional benefit, that C-TPAT- certified importers at the Port of Chicago can use purple folders for formal entries and ABI informal entries, in order to identify C-TPAT documents through release. (However, purple folders should not be used for filing entry summary documents.)
The purple folder option is not available to quota entries, live entry/entry summaries, and warehouse entries due to their current special handling. However, C-TPAT-certified importer shipments will receive expedited processing if designated for exam based on CBP system notifications.)
(See ITT's Online Archives or 04/19/07 news, 07041999 1, for BP summary announcing this additional benefit for C-TPAT members. See ITT's Online Archives or 06/13/07 news, 07061399 1, for BP summary announcing that C-TPAT members should contact the ports they import through to find out about the benefit.)
CBP Port of Chicago contact- Andrew Ferreri (847) 928-3008
CBP Chicago Pipeline (07-30, dated 07/09/07) available via email by sending a request to documents@brokerpower.com