CBP Outlines Procedures For Processing Quota-Class Merchandise Under PAPS
U.S. Customs and Border Protection (CBP) has posted to its Web site a notice which outlines the procedures that must be followed when processing quota-class merchandise under the Pre-Arrival Processing System (PAPS).
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(CBP notes that new mandatory advance electronic manifest requirements for truck cargo were implemented at all southern border ports and ports in Michigan, New York, and Washington on November 15, 2004, requiring the advance transmission of information to CBP at least one hour prior to arrival.)
CBP states that the following procedures must be followed when processing quota-class merchandise under PAPS. CBP notes that depending on the situation, quota-class merchandise may or may not be released at primary.
Quota-class merchandise released with summary to follow. CBP states that there is no change to the current procedures for quota-class merchandise (e.g. subject to tariff-rate quotas (TRQs)) released with the summary to follow.
Quota-class merchandise released on entry/entry summary information (live entry). CBP states that the following procedures are for quota-class merchandise (e.g. subject to absolute quotas or TRQs) released on entry/entry summary information (live entry):
The manifest must clearly identify quota merchandise and this must be coordinated between the shipper and the carrier;
All shipments identified as quota merchandise will be referred to the secondary;
Once in secondary, the carrier must provide the broker with documents necessary for preparation of the entry/entry summary;
The broker must present the entry/entry summary to the CBP office responsible for processing the quota;
Once quota is processed and accepted, cargo selectivity can be performed and the merchandise released; and
If quota is not available, the broker must warehouse, export, or destroy the merchandise. If the merchandise is subject to a tariff-rate quota (TRQ), in addition to the previous options, the broker has the option of paying the over-quota rate of duty for the excess amount.
See today's ITT, 04113005, for BP summary on the extension of the informed compliance period for in-bond shipments under the advance manifest information requirements for inbound truck cargo.
CBP notice (QBT-04-557, dated 11/23/04) is available at http://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/qbts/QBT2004/2004_557.ctt/2004_557.doc.
BP Note
BP is checking with CBP regarding several questions related to this notice, and will update subscribers as new information is available.