CBP Postpones Changes to Reconciliation Program

CBP has postponed the January 14, 2017 migration of all reconciliation entry transmissions to the Automated Commercial Environment (ACE). CBP made the announcement after receiving considerable feedback concerning the complexity of this transition, as well as the impact to other programs slated for ACE deployment. The agency is expected to provide a new effective date for the reconciliation transition to ACE in the near future.  
The migration to ACE will impact all new reconciliation submissions made after the effective date, including those submissions that may have underlying entries that were filed in the Automated Commercial System (ACS). The transition will also impact submissions that are replacements, substitutions or follow-up entries to a prior submission filed in ACS. The transition will also have the following practical implications for reconciliation participants.

  • Elimination of CBP Blanket Flagging - CBP will no longer apply blanket flags to all underlying entries filed by the importer for a specific period. Importers must input and apply blanket flagging themselves, or though their broker.
  • Elimination of ITRAC Data - The Masterfile Extract and Liquidation Extract Reports previously available upon request from CBP will be discontinued. CBP will continue to provide this information for a short time after the transition date, however once reconciliation reports are available through ACE, CBP will no longer provide this data to importers.
  • Manual Requests for Retroactive Flagging - Reconciliation program participants may request that CBP retroactively flag underlying entries by sending an email to OFO-RECONFOLDER@cbp.dhs.gov. However, it should be noted that CBP intends to grant these requests sparingly and only as a courtesy.
  • Elimination of Reconciliation Processing Ports - CBP is eliminating the requirement that reconciliation entries be filed at specified reconciliation processing ports. Reconciliation entries can be filed at any port the importer chooses. Based on the Importer of Record (IR) number associated with the ACE account, CBP will internally route all entries to the appropriate Center of Excellence and Expertise (CEE).
  • Elimination of Spreadsheets - Paper and compact disc spreadsheets will no longer be accepted as part of the filing of reconciliation entries. The data formerly contained in the associated files and spreadsheets will be transmitted electronically as part of the reconciliation entry.
  • Changes to Information Requirements
    • Reconciliation entries with no changes to flagged entries must only report the flagged underlying entry numbers (no line item data) and must be filed as an aggregate reconciliation entry, i.e., no entry-by-entry reconciliation entry will be allowed when there are no changes to declare.
    • Reconciliation entries with changes to the flagged entry will no longer have to include original transaction values, or original duties, fees and taxes amounts declared in the flagged entry. As a result, reconciliation entries with changes will only have to report the newly determined transaction value and the newly reconciled duties, fees and taxes.
    • Reconciliation entries that cover underlying entries subject to post summary corrections, protests, prior disclosures, or pending binding rulings must be indicated as such.
    • Reconciliation entries claiming preferential tariff treatment pursuant to a free trade agreement post-importation claim must include electronic certifications of the statements and declarations required by regulation.
    • Reconciliation entries reconciling classification issues must provide information indicating the protest, administrative ruling or court action which necessitates reconciling the classification of the underlying flagged entry.
    • Reconciliation entries flagged for a value change must indicate if the value change also results in a classification change.
  • Elimination of the Application Process - CBP is removing the requirement that interested importers apply to participate reconciliation program. Participating importers are still required to have a continuous bond on file with CBP with the required reconciliation bond rider; however no formal application will be required moving forward.

Further updates on the transition will be posted on www.rocktradelaw.com.

Should you have any questions about the changes to the reconciliation process, please contact one of the Rock Trade Law LLC attorneys or trade professionals listed here.