CBP Delays Enforcement for Entering IIT Containers with Residue

This change is contained in an updated version of CBP’s frequently asked questions (FAQ) on containers considered to be IIT that have residual cargo.

Requirement & FAQ Due to 2009 Residue Ruling

In July 2009, CBP published in the Customs Bulletin HQ H026715, which modified HQ 113129 (1994) to no longer allow containers imported with residual cargo (such as chemicals or other bulk goods¹) to be entered as empty.² HQ H026715 requires that the chemical residue imported in the containers be classified, entered, and manifested. HQ H026715 also allows the containers themselves to continue to be considered IIT³.

Enforcement Delayed Pending IT Resolution (Such as M1 Release in 2012)

CBP has revised its answer to the question regarding when it will begin enforcing HQ Ruling H026715. CBP previously stated that it would begin enforcement on July 17, 2011.

CBP now states that an enforcement date for HQ Ruling H026715 has not yet been set. While the electronic filing of Section 321 entries is currently available in the truck and air modes of transport, this capability does not exist at this time in the rail environment. With an anticipated deployment of the ACE M1 release (e-Manifest: Ocean and Rail) in early 2012, the filing of electronic Section 321 entries will be possible in all modes of transport.

CBP anticipates establishing an enforcement date for all modes once the requisite information technology issues are resolved. The trade community will be notified well in advanced of the enforcement date once it is established.

CBP Exploring Automated Process for Section 321 Entries Under $200 in Rail

CBP has also revised its answer to the question on the Section 321 (19 USC 1321) release process for IITs containing residual cargo valued at less than $200⁴.

CBP now states that currently, in the rail environment, CBP’s Rail Automated Manifest System (AMS) is unable to process and release Section 321 entries automatically, therefore CBP will not be able to identify which Bills of Lading covering the IIT with residual cargo are being entered for release under Section 321 without performing some research.⁴

CBP is exploring the feasibility of developing an automated process for these types of rail shipments (the capability to electronically file these entries currently exists in air and truck modes of transportation). As this automated process for entering qualifying residual cargo with a value under $200 is developed, CBP will outline the process in an updated version of this FAQ document.

(CBP’s previous instructions on how to submit Section 321 entries non-automatically have been removed.)

¹In response to a question about whether CBP intends to enforce its position in HQ H026715 on just bulk and intermediate bulk containers or any container with residue, box, barrel, drum, pail, jerrican, can, bag, etc., CBP stated that to the extent that the original 1994 ruling (HQ 113129) applied to Dow Corning, and those containers at issue within the ruling, all other entities should have been transmitting advance electronic cargo information and properly entering the merchandise and containers that have been transported into the U.S.

²In HQ 113129, CBP had held that steel containers meeting the requirements of 19 CFR 10.41a as instruments of international traffic and filled with a chemical when exported from the U.S. could be entered as empty when imported back into the U.S., notwithstanding the residue of chemicals remaining in the containers. It was stated that not only was the residue a very small part of the amount of a full container, but it was virtually impossible to completely empty the containers. The residue was not discarded, rather, more chemicals were added to the containers.

³CBP states that in order to qualify as an IIT within the meaning of 19 USC 1322(a) and 19 CFR 10.41a et seq., an article must be substantial, suitable for and capable of repeated use, and used in significant numbers in international traffic. 19 CFR 10.41(a(a)(1) designates as IIT lift vans, cargo vans, shipping tanks and certain other named articles and states that other articles may be designated as IIT by the CBP Commissioner in decisions to be published in the weekly Customs Bulletin.

⁴The following information is required for merchandise that qualifies for release without entry -- a Section 321 release (19 USC 1321; 19 CFR 143.23).

• Country of origin of the merchandise;
• Shipper name, address and country;
• Ultimate consignee name and address;
• Specific description of the merchandise;
• Quantity;
• Shipping weight; and
• Value.

In addition to this information, a valid type 3A bond in the name of the entity requesting release is required for IIT containing residue.

(See ITT’s Online Archives or 02/25/11 news, 11022519, for BP summary of CBP’s most recent previous version of the FAQs.

See ITT’s Online Archives or 09/14/09 news, 09091405, for BP summary of CBP delaying the enforcement date of HQ Ruling H026715.

See ITT’s Online Archives or 07/21/09 news, 09072140, for BP summary of HQ Ruling H026715.)