Entry-Level CAPE Validations Updated by CBP
In a message to the trade sent on June 25, CBP has advised that certain validations performed on entries included on CAPE declarations have been updated. Entries that have previously resulted in either a GOODS VALUE MUST BE REPORTED ON THE CH 1-97 or HTS RELATIONSHIP/SEQUENCE MISMATCH error can be resubmitted on new CAPE declarations.
For GOODS VALUE MUST BE REPORTED, this validation has been removed and entries that previously triggered the error will now be accepted. For HTS RELATIONSHIP/SEQUENCE MISMATCH, this error message has been broken into two more specific error messages.
Entries that previously triggered this error may now be accepted or will result in one of the following more specific error messages:
INVALID HTS
Results when the line action date is not within the begin/end dates of the HTS codes on the entry.
HTS RELATIONSHIP MISMATCH
Results when an HTS code designated as an add/replace/derived HTS code exists on the entry, but the corresponding HTS code has not been provided.
If you receive either of these error messages back, a PSC to correct the issue should be filed. Once processed, entry may be resubmitted on a new CAPE declaration.
For a complete list of CAPE validation error messages, you may visit the IEEPA Duty Refunds webpage or the CAPE Declarations and Error Definitions Quick Reference Guide.
Comment Period for Non-Sensitive Chinese Products Ends Soon
On June 2 the Office of the U.S. Trade Representative (USTR) opened a comment period on what non-sensitive Chinese products should be eligible for reductions to non-MFN tariffs such as Section 301 and Section 232 when imported into the United States. As a reminder, importers only have until July 10 to submit comments in hopes of securing new or continued tariff reductions. If you are interested in seeking or securing tariff reductions on non-sensitive products from China, be sure to take advantage of this comment period.
Big Changes for Informal Postal Entries Coming July 24
Beginning on July 24, only those with the right to make entry or licensed customs brokers (LCBs) designated by the owner, purchaser, or consignee, will be able to file informal international mail entries for shipments under $2500.
According to the interim final rule, a new informal entry process for mail shipments will allow CBP to collect applicable duties and better enable CBP to police undervaluation, evasion, fraud, and unlawful importation. The new process is only available to merchandise valued at $2500 or less, is sent to the U.S. via mail, and is classifiable only under HTSUS Chapters 1-97. Entries subject to Chapter 98 or 99 duties, quota, AD/CVD, PGA requirements, or for which duty-free treatment is claimed under a provision of Chapter 98 won’t be eligible for the new process.
Those filing such entries will need to obtain the following required information and send it to CBP via email in the form of an Excel spreadsheet: Filer Code, Bond Number, Description of Merchandise, Country of Origin of Merchandise, All Applicable 10-digit HTSUS Classifications, Quantity/Weight (conditional and required ONLY if using a specific duty rate), Duty Rate, Value, Total Duty Owed, Carrier, Flight/Conveyance Number, Tracking Number (generated by the foreign post operator), Arrival Port, and Arrival Date.
Bonds will be required to secure the transactions. The party making entry must secure a single transaction bond or a continuous bond under the conditions found in 19 CFR 113.62. CBP officers will also no longer manually prepare entry forms for informal mail shipments and duties will not be collected upon delivery of shipments to addresses.
You can view the interim final rule in the Federal Register for complete details on this upcoming rule change.