CBP to Modify PEAs and Discontinue Use of SILs Effective September 20, 2007
U.S. Customs and Border Protection has issued a general notice announcing that effective September 20, 2007, its Post-Entry Amendment (PEA) Processing test will be modified, and CBP will discontinue accepting Supplementary Information Letters (SILs).
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CBP is also extending the PEA test for another one-year period commencing on August 21, 2007.
Acceptance of SILs Discontinued as of September 20, 2007
CBP states that it will discontinue acceptance of SILs on September 20, 2007. On that date, the PEA test will be the only procedure in place for submitting post summary adjustments prior to liquidation. CBP adds that it will issue an administrative message regarding this change soon.
Single PEAs to be Filed At Least 20 Days Prior to Scheduled Liq. Date
Under the PEA test, a single PEA must be filed by the importer (or its broker) upon discovery of: (1) a revenue-related error in an entry summary where the error results in either an overpayment or underpayment of duties, taxes, and/or fees in the amount of $20 or more; (2) any error in an entry summary relating to antidumping or countervailing duties; and (3) any non-revenue related statistical information error in an entry summary that must be reported to the U.S. Census Bureau.
Effective September 20, 2007, CBP will require the filer of a single PEA to submit the PEA at least 20 days prior to the scheduled liquidation date of each entry summary covered in the letter.
This 20-day period will provide CBP sufficient time to review all entry summaries covered in a single PEA prior to the scheduled liquidation date.1
Single PEAs That Are Untimely Filed, or Are Not Timely Processed by CBP, Etc.
Single PEAs submitted untimely will be rejected and returned to the filer.
In those instances in which the single PEAs are submitted timely but the entry summaries are not unset or processed by the scheduled liquidation date, and liquidation occurs without benefit of the requested amendment, CBP will treat them as protests under 19 USC 1514 or, if appropriate in the circumstances, as evidence warranting reliquidation under 19 USC 1501.
1 CBP explains that this change is necessary as the liquidation of single PEAs (i.e., of the entry summaries covered) under the test is currently a manual function and past performance has shown that more time is needed to process these amendment requests effectively. CBP also notes thatprior to this change, single PEAs were required to be filed promptly after discovery of the error(s) and prior to liquidation of the one or more entry summaries covered in the letter.
(See ITT's Online Archives or 11/28/00 news, 00112775, for BP summary announcing the PEA test program. See ITT's Online Archives or 11/30/00 news, 00112936, for BP summary providing details on the PEA test, which noted that PEAs may eventually replace SILs.
See ITT's Online Archives 12/07/00 and 01/16/01 news, 00120625 and 01011215, for BP summaries on updates of the PEA test. See ITT's Online Archives or 01/09/01 news, 01010825, for BP summary announcing the beginning of the PEA test.
See ITT's Online Archives or 01/07/02, 02/24/03, and 02/09/04 news, 02010705, 03022405, and 04020905, for BP summaries on the extension of the PEA test through 2002, 2003, and 2004, respectively.)
CBP contact - Jennifer Dolan (202) 863-6538
CBP general notice (FR Pub 08/21/07) available at http://a257.g.akamaitech.net/7/257/2422/01jan20071800/edocket.access.gpo.gov/2007/pdf/E7-16415.pdf
BP Note
Information provided at recent ACE Exchange conferences indicated that post summary corrections (PSCs) will replace the SIL and PEA process when Entry Summary, Accounts, and Revenue (ESAR) A2 is implemented, which is expected in 2009. However, since SILs are being discontinued, PSCs will only be replacing the PEA process. (See ITT's Online Archives or 06/21/07 news, 07062105, for BP summary of the ESAR A2 discussion at the ACE Exchange V, which provides information on PSCs replacing PEAs and SILs. See ITT's Online Archives or 08/20/07 news, 07082005, for most recent BP summary on A2.)