Details of CBP's Notice on Future Changes for IIT with Residue or Empty
U.S. Customs and Border Protection recently announced that updates will be made to the CAMIR and ANSI X12 sea and rail interface guidelines that will set the stage for announcing an enforcement date to require residue (such as chemicals or other bulk goods) imported in containers considered to be instruments of international traffic (IIT) to be manifested, classified, and entered. CBP has delayed setting an enforcement date for this requirement since May 2011 pending the ability for Section 321 entries to be electronically filed in the rail mode.
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(A Section 321 entry, which is a subcategory of informal entries, allows the duty-free entry of a shipment valued at $200 or less that is imported by one person on one day, with minimal attendant documentation requirements.1)
2009 Ruling Stated that IIT with Residue Cannot be Entered as Empty
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 goods) to be entered as empty. HQ H026715 requires that the residue imported in the containers be classified, entered, and manifested. HQ H026715 also allows the containers themselves to continue to be considered IIT.
Although CBP had planned to enforce HQ H026715 on July 17, 2011 for all applicable IIT, CBP delayed its enforcement for all modes, stating that while the electronic filing of Section 321 entries is currently available in the truck and air modes of transport, this capability was not available for rail. The agency stated that with the ACE M1 release (e-Manifest: Ocean and Rail) expected to deploy in early 2012, the filing of electronic Section 321 entries would be possible in all modes, and CBP would establish an enforcement date at that time.
CBP Expects Electronic Rail Section 321 Entries in Jan 2012, Residue Enforcement Later
CBP sources now state that the CAMIR and ANSI X12 updates, which support electronic Section 321 entries in the rail mode, are being programmed and should be delivered to production in January 2012. They add that enforcement of the requirement for the electronic filing of Section 321 entries [in accordance with HQ H026715] cannot be implemented until either (i) all rail carriers are processing in ACE, or (ii) AMS rail manifest is decommissioned.
According to sources, the recent updates were announced in order to give the trade time to program for any necessary changes. (See ITT's Online Archives 1121213 for summary of CBP's timeline for decommissioning AMS for rail and ocean.)
(The updates cover empty containers, empty container bill types, residue weight, Section 321 release for residue cargo, when residue cargo is hazardous material, etc.
It also expands the definition of "empty container bill type" to state:
Scope of IIT. The empty container bill type can only be used for carrier-owned/leased instruments of international traffic.
Bond and port director approval. In accordance with the CBP regulations at 19 CFR 10.41a and 19 CFR 113.66, entities requesting release (without entry) for instruments of international traffic must have a Type 3a Instruments of International Traffic bond and must have an application approved by the CBP Port Director.
Importer must comply with regulations. In order to transmit the empty container bill type and request release without entry for IIT, the IMPORTER must comply with the CBP regulations at 19 CFR 10.41a and 19 CFR 113.66. Where the IIT is completely empty and the carrier is requesting release under the CBP regulations at 19 CFR 10.41a, the principal on the type 3A CBP bond must be the applicant for release of the holder or container designated as IIT. In cases where the empty container bill type is used, the carrier transmitting the information is the importer.
Advance cargo information. Advance electronic cargo information for carrier-owned/leased IIT must be received by CBP via Vessel AMS no later than 24 hours prior to vessel arrival at the first U.S. port. Advance electronic cargo information for shipper/consignee-owned or shipper/consignee-leased IIT must be transmitted in the same manner as information for any other revenue shipment and the transmission time frames (no later than 24 hours prior to loading in the foreign port) for revenue shipments apply.
1The term Section 321” is derived from this provision’s statutory source, 19 USC 1321(a)(2)(C).
(See ITT's Online Archives 11120819 for initial summary of CSMS #11-000304, dated 12/08/11 and CSMS #11-000304 for full details of these programming changes.
See ITT's Online Archives 11050513 for summary stating that CBP was delaying enforcement for entering IIT containers with residue, and 11022519 for earlier summary stating that the enforcement date was July 17, 2011. See ITT's Online Archives 10121426 for summary of CBP's revised FAQ on IIT with residue, and 10051150 for summary of initial IIT FAQ.)
(CSMS#11-000304)