CBP 'Retracts' TBT on HQ Review of Textile and Apparel Entries and its Pursuit of Penalties for Egregious Errors
U.S. Customs and Border Protection (CBP) has issued a memorandum stating that it is retracting Textile Book Transmittal (TBT) 07-003 issued in February 7, 2007 concerning Reasonable Care for Accurate Entry Summary Data.
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TBT Had Stated That Penalties Would be Pursued for Egregious Errors
TBT 07-003 had advised the trade community that in its review of textile and apparel1 entry summaries, it had found both brokers and importers to have made egregious errors in the reporting of statistical data, such that the entry documents do not correctly reflect the transactions. CBP had stated that these errors occur in the reporting of quantity, country of origin, classification, and manufacturer identification number.
CBP had also stated that Headquarters would be reviewing textile and apparel1 entries to identify egregious errors. When errors are identified, the ports would be directed to pursue penalties against brokers and importers, as applicable.
CBP States Any Future Memos on Reasonable Care to Provide Additional Details
In its retraction memo, CBP states that the TBT did not provide sufficient clarity to such terms as "egregious", and did not define the types of errors that were significant or material. In addition, CBP states that the memo created confusion for both field offices and the importing community. CBP adds that any future memos concerning reasonable care will provide adequate clarity.
CBP adds that, as always, importers and brokers are encouraged to use reasonable care to ensure accurate declarations are made to CBP.
1 CBP sources had stated that although TBT-07-003 was written to address egregious errors found in textile and apparel entries, CBP is not precluded from reviewing and penalizing other types of commodities.
CBP contact: Anne Maricich (202) 863-6030
CBP retraction memo (dated 02/16/07) available at http://www.cbp.gov/linkhandler/cgov/import/textiles_and_quotas/tbts/tbt2007/tbt_07_003.ctt/tbt_07_003.pdf
CBP TBT-07-003 (dated 02/07/07) available via email by emailing documents@brokerpower.com
BP Note
The text of TBT-07-003 has been replaced by this retraction notice on CBP's Web Site. Also, there did appear to be some confusion in other publications - which thought that the scope of the TBT extended beyond textiles and apparel. With respect to CBP's pursuit of penalties for egregious errors in textile and apparel entries, or any other type of entry, trade sources note that CBP continues to have this legal authority.