CBP Issues "Blanket" Authorization For Immediate Delivery Procedures for 2004 Year-End Shipments
U.S. Customs and Border Protection (CBP) has issued an ABI administrative message announcing that it is issuing a "blanket" authorization to allow the release of most types of merchandise on or after December 16, 2004 through December 31, 2004 under Immediate Delivery (I.D.) procedures.
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Under I.D. procedures, the duty rate used by CBP is the one in effect when the entry summary is filed with estimated duties, instead of when Customs releases the goods from its custody. (See 19 CFR 142.21(h).)
Allows Any 2005 Lower Duty Rates to be Available "Early"
Under this temporary policy, eligible shipments which are released under I.D. procedures during the period December 16 - 31, 2004 may elect to use a 2005 entry summary date as the "time of entry," rather than the 2004 date of release, and take advantage of any lower duty rates or special programs which take effect on or after January 1, 2005.
(Certain provisions of the Miscellaneous Trade Bill take effect on or after January 1, 2005. In addition, the Australia Free Trade Agreement may take effect on or after January 1, 2005.)
CBP states that ABI filers that receive a "paperless" provisional selectivity message can establish their desired entry date by using a 2005 date in the estimated entry date field in the summary transmission ("EI" transmission). CBP notes that if this field does not show a 2005 date, then the 2004 duty rates will apply.
CBP also states that in those instances where the CF 3461/CF 3461(ALT) is used as the entry document and the importer wishes to elect I.D., a line must be drawn through the word "Entry" on the document. This will identify the change from "entry" to "immediate delivery" and will allow filers to elect a date of entry in order to take advantage of tariff changes or special programs. Under ID procedures, the entry summary or entry/entry summary (as applicable) must be filed within 10 working days after release.
CBP adds that this blanket authority extends to shipments released December 16, 2004 through December 31, 2004 only, and no grace period will be granted for the purpose of timely filing entry summaries under this one time allowance.
Restrictions on Use of These Blanket I.D. Procedures
According to CBP:
Absolute quota merchandise (such as textiles and apparel subject to absolute quota) are not eligible for this blanket authorization.
TRQ merchandise previously authorized for I.D. release under 19 CFR 142.21(e) may still be released under I.D. procedures. However, the entry summary shall be presented within the time specified in 19 CFR 142.23 (i.e. within 10 working days after release) or within the TRQ period, whichever expires first.
Merchandise moved under Immediate Transportation (I.T., Entry type 61) is not eligible for I.D. procedures. As a result, I.T.s cut in 2004 at the port of original importation are subject to the rate of duty in effect at the time the I.T. was cut. (See 19 CFR 141.69.)
(CBP sources have previously noted a way to get around this I.T. ineligibility, as I.T.s cut in Year 1, entered into warehouse, and withdrawn from warehouse for consumption in Year 2 receive the Year 2 duty rate. See the CATAIR, page ENS-28, Note 6.)
Subscribers should also note that a number of entry filers make use of I.D. procedures on a regular basis for fresh fruits and vegetables, merchandise from Mexico and Canada, etc. (See 19 CFR 142.21.)
CBP Contact - Debbie Scott (202) 344-1962 or Sherri Hoffman (202) 344-2684
CBP Admin 04-2497 (dated 12/08/04), available at http://www.brokerpower.com/cgi-bin/adminsearch/admmsg.view.pl?article=2004/2004-2497.ADM