CBP's Final Rule on the Advance Electronic Presentation of Cargo Information (Part XX - CBP Responds to Comments)
U.S. Customs and Border Protection (CBP) has published a final rule which amends the Customs Regulations effective January 5, 2004 regarding the advance electronic presentation of information pertaining to cargo (sea, air, rail, or truck) prior to its being brought into, or sent from, the U.S. (See final rule for compliance dates for each transportation mode.)
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This is Part XX of a multi-part series of summaries of this final rule, and highlights some of CBP's responses to comments on the proposed rule concerning Option 4 filing, as follows:
Incorporating existing Option 4 holders into "new" Option 4. In response to a comment stating that CBP and the Bureau of Census (Census) should grandfather existing Option 4 holders into the "new" Option 4 to be jointly constructed by the two agencies, CBP states that it cannot guarantee that current Option 4 U.S. Principal Parties in Interest (USPPIs) will retain the privilege under program requirements that have yet to be finalized. The current Option 4 was conceived prior to September 11, 2001, and it is the goal of Census and CBP to ensure cargo safety and seaport security while at the same time fostering the continued smooth flow of commerce. According to CBP, the new Option 4 will emphasize volume, repetitive low-risk commodities and compliance.
Repeated shipments of low-risk commodities to related parties. In response to a suggestion that CBP should take into account those exporters who repeatedly shipped the same low-risk commodities to related parties, CBP states that it does take such exporters into consideration. CBP notes that current Option 4 is intended for repetitive exports of low-risk commodities by compliant USPPIs. CBP states that it will explore with Census the possibility of using related parties as a requirement or factor to determine Option 4 eligibility.
Minimum export volume requirements. According to CBP, two commenters sought assurance that any revisions to Option 4 filing would not reduce the ability for legitimate, low-risk exporters (such as exporters of agricultural commodities) to qualify for such filing if they were otherwise in compliance, even though they did not meet minimum export volume requirements. Another commenter wanted the program expanded to additional companies that faced new lead time requirements.
CBP responds that it and Census are in the early phase of redesigning the program. While export volume will be a significant factor, there may be an appeals procedure wherein a compliant low-volume exporter can demonstrate a legitimate need for Option 4 filing under the redesigned system.
Option 4 filing for C-TPAT members. CBP states that two commenters urged the continuation of Option 4 filing for the Customs-Trade Partnership Against Terrorism (C-TPAT) members with low-risk commodity exports. Also, CBP reports that it was thought that such exemptions (as Option 4) and programs for exports should match those provided for imports.
CBP responds that current Option 4 filing is available to compliant exporters of low-risk commodities, regardless of C-TPAT status. CBP indicates that it does not anticipate that this will change.
(See ITT's Online Archives or 01/14/04 news, 04011420, for Part XIX of this series. See ITT's Online Archives or 12/09/03 news, 03120915, for Part II, which includes a list of CBP contacts.)
CBP final rule (CBP Dec. 03-32), FR Pub 12/05/03, available at http://a257.g.akamaitech.net/7/257/2422/14mar20010800/edocket.access.gpo.gov/2003/pdf/03-29798.pdf