CBP Email "Gets Out" on New Compliance Measurement Guide and 28s
U.S. Customs and Border Protection issued an email on October 6, 2010 indicating that new compliance measurement (CM) guidelines and the recent ACE update would place additional requirements on import specialists.
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(Among other changes, the ACE ESAR update allows portal account holders to view and respond to CBP Forms 28, 29 and 46471, whether created in ACS or ACE, which are issued for ACS or ACE entry summaries. Originally set for implementation on October 3, the ACE update was delayed until October 312.)
Information in Message Was Not Intended for Public Viewing
According to October 6 and 13 follow-up emails, CBP stated the information in the email was not intended for the public. It contained incorrect information, as well as information for CBP official use only. CBP asked that recipients of the email delete it and not disseminate it further, and that the October 13 follow-up email be forwarded to anyone that received it.
CBP officials then sent an October 28 letter to Managed Accounts that said the email contained incorrect as well as sensitive information, and asked for their assistance in stopping its further dissemination.
The letter confirmed that there were new compliance measurement guidelines, and said the intent of the email was to remind accounts of the requirements for invoices and that CBP is entitled to request information regarding the value of merchandise.
CBP again asked that the email be disregarded and not disseminated further, adding that anyone who received the email also be sent the October 28 letter. CBP noted that steps have been taken to ensure that such a mistake does not happen again.3
Email Expected More Compliance Measurement Summary Reviews & 28s
With the additional requirements from the new compliance measurement guidelines, and the additional functionality from the ACE update, the email indicated that there would likely be many more compliance measurement summary entry reviews, which would lead to more CBP Form 28s being issued.
Volume of 28s Already Up due to Focus on Invoices and Value
The email also stated that there are already increased numbers of CBP Form 28s being issued due to the requirement that import specialists confirm the description of products with invoices that have very limited descriptions (especially electronic invoices), as well as CBP’s increased emphasis on value.
Invoice descriptions. The import specialist is required to confirm the invoice description. If the invoice description is inadequate or missing, the Import Specialist will have to issue a request for information. In the past many importers/filers using electronic invoices have either not forwarded the invoice at all or have submitted very limited invoice descriptions.
Everyone using electronic invoicing should make sure that the broker is transmitting the EI information and that the invoice description contains sufficient information for classification.
Value emphasis. There is an increased emphasis on confirming value. When a 28 is issued, the Import Specialist is very likely to request all information related to value - copy of invoice, proof of payment, etc. - as well as checking all the boxes related to Royalties, Commissions, Packing, etc.
(Note that if a 28 is received that requests all the value information, and the entry is flagged for reconciliation, one can just state that it is flagged and it will not be necessary submit the value information.)
1CBP Form 28 (Request for Information), CBP Form 29 (Notice of Action), and CBP Form 4647 (Notice to Mark/Notice to Re-Deliver)
2While the ACE update was initially targeted for Oct 3, it was implemented on Oct 31. (See ITT’s Online Archives or 10/29/10 news, 10102908, for BP summary.)
3Various authoritative sources stated that the email was poorly worded, contained incorrect content, did not represent a change from what CBP has been doing, that it was informative and not a directive, and that importers should make sure they follow regulations regarding invoice description and value. Another source noted that CM reviews had been cursory in the past and the program was in need of ‘beefing up’, while another stated that sometimes such investigative work is driven by information requests from Congress.
Email documents@brokerpower.com for copy of emails and letter