CSMS Message: 00-000191

*************INFORMATION FOR RECONCILIATION PARTICIPANTS*********

TERMINATION OF SURETY BOND TERMINATES RECONCILIATION FLAGGING.

THIS IS TO REMIND RECONCILIATION PARTICIPANTS OF PROBLEMS THAT ARISE WHEN
CHANGING SURETY COMPANIES OR BOND COVERAGE AMOUNTS.

A VALID TYPE 1 CONTINUOUS BOND IS REQUIRED FOR PARTICIPATION IN
THE RECONCILIATION PROTOYTPE. CUSTOMS AUTOMATED COMMERICAL
SYSTEM REQUIRES THE BOND TO BE RECORDED IN THE SYSTEM IN ORDER
TO ALLOW FLAGGING.

UNFORTUNATELY, THE PORTION OF ACS THAT TRACKS BOND STATUS WAS
DESIGNED LONG AGO, WITHOUT ANTICIPATING THE RECONCILIATION
PROTOTYPE.

THE RESULT IS THAT AS SOON AS A BOND IS *SCHEDULED* TO TERMINATE
IN ACS, THE FLAGGING CAPABILITY IS TURNED OFF. EVEN IF THE BOND
IS SCHEDULED TO TERMINATE WEEKS IN ADVANCE, THE DATE WHEN
THE TERMINATION DATE IS INPUT IS THE DATE THE FLAGGING IS STOPPED.

THE INPUT OF THE TERMINATION DATE IS THE ONLY SYSTEM EVENT THAT CAN
BE USED TO MONITOR BOND COVERAGE FOR RECONCILIATION PARTICIPANTS,
SO THERE IS CURRENTLY NO WAY TO ADMINISTER THESE CHANGES ANY
DIFFERENTLY.

WHEN ENTRIES FOR IMPORTERS IN THIS SITUATION ARE FILED, WITH
FLAGGING ATTEMPTED, THE FILER WILL GET THE "NOT A RECONCILIATION
IMPORTER" MESSAGE.

FOR BLANKET FLAGGING, THE RESULT IS NOT AS APPARENT. THERE IS NO
NOTIFICATION TO CUSTOMS, THE IMPORTER, OR THE FILER, THAT ENTRIES
ARE NO LONGER BEING FLAGGED FOR RECONCILIATION.

IN ORDER TO MINIMIZE INCONVENIENCE FOR EVERYONE INVOLVED, THE
RECONCILIATION TEAM RECOMMENDS THAT:

1. IMPORTERS AND BROKERS BE AWARE OF TRANSITIONS IN BOND STATUS

2. THE NEW BOND BE SECURED IN ADVANCE, TO MINIMIZE "DOWNTIME"

3. THE RECONCILIATION BOND RIDER FOR THE NEW BOND BE SECURED
AT THE SAME TIME THE NEW BOND IS OBTAINED

4. FILERS COMMUNICATE WITH THE BOND DESK AND BE AWARE OF THE
INPUT OF BOND TERMINATION DATE.

5. FILERS REQUEST THE BOND DESK TO INPUT THE NEW BOND INTO ACS
AT THE THE SAME TIME THE OLD BOND'S TERMINATION DATE IS INPUT.

IF THE NEW BOND IS ALREADY IN THE SYSTEM, THE RECONCILIATION TEAM
CAN IMMEDIATELY REACTIVATE THE IMPORTER FOR FLAGGING. SO IT IS
ADVISABLE FOR FILERS TO MAKE SURE THE NEW BOND IS INPUT CONCURRENTLY
WITH THE OLD BOND'S TERMINATION, AND COORDINATE WITH THE RECONCILIATION
TEAM TO PROVIDE THE NEW RIDER AND HAVE THE FLAGGING CAPABILITY RESTORED.

THE RECONCILIATION TEAM PERIODICALLY RUNS A REPORT TO FIND
IMPORTERS WHOSE FLAGGING CAPABILITY HAS BEEN TERMINATED BY ACS,
AND WILL NOTIFY THE POINT OF CONTACT WE HAVE ON FILE.

AS SOON AS THE NEW BOND IS VALID AND INPUT INTO ACS, AND THE
RECONCILIATION TEAM RECEIVES A FAXED COPY OF THE NEW RIDER (REFERENCING
BOND NUMBER OF THE NEW BOND), WE WILL IMMEDIATELY REINSTATE THE
IMPORTER'S ABILITY TO FLAG ENTRIES.

IF YOU HAVE QUESTIONS ABOUT THIS MESSAGE, OR THE RECONCILIATION
PROTOTYPE IN GENERAL, PLEASE CONTACT SHARI MCCANN AT (202) 927-1106
OR DON LUTHER AT (202) 927-0915. INFORMATION ON THE PROTOTYPE IS
ALSO AVAILABLE VIA THE INTERNET AT WWW.CUSTOMS.GOV/RECON.