CSMS Message: 94-000629

TO : ALL ABI BROKERS.

FROM : JUDY SCHOENY

SUBJECT : MOD ACT - RECORDKEEPING

DATE : 06/22/94

OFFICE OF REGULATORY AUDIT

REVITALIZATION OF RECORDKEEPING REQUIREMENTS

A CONCEPT PAPER

MAY 31, 1994

TABLE OF CONTENTS

PAGE

NOTES
1

FLOW CHART OF PROPOSED RECORDKEEPING PROGRAM 2

SUMMARY 3

MOD ACT CHANGES TO RECORDKEEPING REQUIREMENTS OF
19 U.S.C 1508 AND 1509 7

ADDITIONAL RECORDS REQUIRED BY 19 U.S.C 1508 AND 1509 9

CONGRESSIONAL INTENT OF CHANGES 10

PROPOSALS FOR REVITALIZATION OF CUSTOMS
RECORDKEEPING PROGRAM 12

BENEFITS TO LINKING FINANCIAL RECORDS TO ENTRY RECORDS 17

NEED FOR REFERENCE NUMBERS TO LINK RECORDS 18

UNIVERSE OF ENTRY DOCUMENTS FOR THE (A)(1)(A) LIST 19

MOD ACT SECTIONS 614 AND 615 AND 19 U.S.C. 1508 AND 1509 21

ACTION PLAN FOR IMPLEMENTING RECORDKEEPING REQUIREMENTS 22

NOTES

THIS PAPER CONTAINS PROPOSED CONCEPTS FOR IMPLEMENTING THE
CUSTOMS RECORDKEEPING PROGRAM, AS AMENDED BY THE CUSTOMS
MODERNIZATION ACT. NONE OF THE CONCEPTS DISCUSSED HAVE BEEN
FIRMLY DECIDED UPON BY CUSTOMS TOP MANAGEMENT. THE OBJECTIVE OF
THIS PAPER IS TO LAY THE GROUND WORK FOR BOTH INTERNAL AND
EXTERNAL DISCUSSIONS. WRITTEN COMMENTS MAY BE SENT TO THE
FOLLOWING ADDRESS:

U.S. CUSTOMS SERVICE
OFFICE OF REGULATORY AUDIT
1301 CONSTITUTION AVENUE, NW
ROOM 2311
WASHINGTON, D.C. 20229
ATTENTION: DIRECTOR, WILLIAM F. INCH

FAX: (202) 927-1452

ALSO NOTE THAT THE FOCUS OF THIS CONCEPT PAPER IS ON
RECORDKEEPING REQUIREMENTS FOR IMPORTS. IN THE FUTURE, CUSTOMS
MAY DEVELOP MATERIALS ON RECORDS FOR EXPORTS, BONDED WAREHOUSES,
FOREIGN TRADE ZONES, CARRIERS, ETC.

FLOW CHART

COULD NOT BE PRODUCED ON ELECTRONIC BULLETIN BOARD

SUMMARY

THE PASSAGE OF THE CUSTOMS MODERNIZATION ACT (MOD ACT)
USHERED IN AN ERA OF NEW PARTNERSHIP BETWEEN THE IMPORTING
COMMUNITY AND THE UNITED STATES CUSTOMS SERVICE. FOR THE FIRST
TIME CONCEPTS SUCH AS INFORMED COMPLIANCE, REASONABLE CARE AND
SHARED RESPONSIBILITY WERE BEING DISCUSSED. IN LIGHT OF SUCH
CONCEPTS BEING SET FORTH, CONGRESS EXPANDED CUSTOMS STATUTORY
RECORDKEEPING REQUIREMENTS TO MORE MEMBERS OF THE IMPORTING
COMMUNITY AND CREATED A RECORDKEEPING COMPLIANCE PROGRAM.
CONGRESS ALSO MANDATED CUSTOMS TO CLEARLY DEFINE THOSE RECORDS
THAT MEMBERS OF THE IMPORTING COMMUNITY WOULD BE REQUIRED TO
MAINTAIN AND FOR WHAT TIME PERIODS. CONGRESS INCLUDED PROVISIONS
THAT GAVE CUSTOMS THE OPTION OF PENALIZING PARTIES WHO FAILED TO
PROVIDE SUCH DOCUMENTS UPON REASONABLE DEMAND.

THE RECORDS SUBJECT TO PENALTIES ARE THOSE REFERRED TO IN
THE MOD ACT AS THE (A)(1)(A) RECORDS. HOWEVER, RECORDS KEPT BY
THE IMPORTING COMMUNITY IN THE ORDINARY COURSE OF BUSINESS (E.G.,
GENERAL LEDGER, CHART OF ACCOUNTS, PURCHASE JOURNALS) THAT
SUPPORT ENTRY DOCUMENTS ARE STILL REQUIRED BY STATUTE BUT ARE NOT
SUBJECT TO RECORDKEEPING PENALTIES. HOWEVER, CONGRESS DID INTEND
THAT THESE RECORDS BE SUBJECT TO CUSTOMS SUMMONS AUTHORITY WHICH
WOULD BE ENFORCEABLE IN A COURT OF LAW. IN ADDITION, THE STATUTE
WAS AMENDED TO ALLOW COURTS TO ASSESS MONETARY PENALTIES FOR
FAILURE TO OBEY A LAWFUL SUMMONS.

THE OFFICE OF REGULATORY AUDIT PROPOSES THAT THE BASIC
STATUTORY RECORDKEEPING PROGRAM BE EXPANDED TO INCLUDE OTHER
RECORDS KEPT IN THE ORDINARY COURSE OF BUSINESS. REGULATORY
AUDIT PROPOSES THESE ADDITIONAL RECORDKEEPING REQUIREMENTS BE
IMPLEMENTED BY REGULATION SIMILAR TO THE CARRIER INITIATIVE
PROGRAM AND BE STRICTLY VOLUNTARY. THE OFFICE OF REGULATORY
AUDIT ENVISIONS A THREE TIER VOLUNTARY RECORDKEEPING PROGRAM:

O TIER I - CERTIFICATION AND RETENTION OF (A)(1)(A)
ENTRY RECORDS

OPTIONS-- CERTIFIERS

O CERTIFICATIONS WOULD BE PERFORMED BY CUSTOMS
(IMPORT SPECIALISTS, AUDITORS) AND OR ACCOUNTING
FIRMS.

O ELIGIBLE PARTIES WOULD CERTIFY THEMSELVES AND
SUBMIT REQUIRED DOCUMENTATION TO REGULATORY AUDIT
DIVISIONS. CERTIFICATIONS WOULD BE REVIEWED
DURING IMPORTER VISITS, PRE IMPORTATION REVIEW
PROGRAM (PIRP) REVIEWS, AND REGULATORY AUDITS.

SUMMARY CONTINUED

OPTIONS-- RECORDKEEPERS -- (A)(1)(A) ENTRY
DOCUMENTS

O IMPORTERS WOULD BE RECORDKEEPERS. IMPORTERS
WOULD BE SUBJECT TO CUSTOMS ADMINISTRATIVE ACTION
AS PROVIDED FOR IN THE MOD ACT FOR NON-COMPLIANCE.

O IMPORTERS AND AGENTS (ACCOUNTANT, BROKER, THIRD
PARTY) WOULD BE RECORDKEEPERS. ALL PARTIES WOULD
BE SUBJECT TO CUSTOMS ADMINISTRATIVE ACTION AS
PROVIDED FOR IN THE MOD ACT FOR NON-COMPLIANCE.

O BROKERS WOULD BE RECORDKEEPERS. BROKERS WOULD
BE SUBJECT TO CUSTOMS ADMINISTRATIVE ACTION AS
PROVIDED FOR IN THE MOD ACT FOR NON-COMPLIANCE.

O TIER II - LINKAGE OF FINANCIAL RECORDS TO ENTRY
RECORDS

OPTIONS

O ADD RECORDS KEPT IN THE ORDINARY COURSE OF
BUSINESSTHE CERTIFICATION PROGRAM.

O CUSTOMS WOULD DEVELOP RECORDKEEPING MANUALS TO
ASSIST THE IMPORTING COMMUNITY WITH UNDERSTANDING
THE REQUIRED FINANCIAL RECORDKEEPING STANDARDS.

O CUSTOMS WOULD DEVELOP AN OUTREACH PROGRAM TO
EXPLAIN THE NEED TO HAVE PROCEDURES IN PLACE TO
LINK FINANCIAL RECORDS TO ENTRY RECORDS.
ATTENDEES WOULD BE GIVEN AN ATTENDANCE
CERTIFICATE.

O MEMBERS OF THE IMPORTING
COMMUNITY WOULD BE INVITED TO
ATTEND TRAINING COURSES ON
VALUATION,CLASSIFICATION,ENTRY
REQUIREMENTS, AND THE NEED TO HAVE
FINANCIAL RECORDS TO SUPPORT ENTRY
DOCUMENTS. ATTENDEES WOULD BE
GIVEN A TRAINING CERTIFICATE.
COURSES WOULD BE TAUGHT BY CUSTOMS.

SUMMARY CONTINUED

O TIER III- FINANCIAL RECORDKEEPING RETENTION
AGREEMENTS

O BASED UPON CUSTOMS CRITERIA SUCH AS NEED, RISK,
ENTRY VOLUME AND RESOURCES, CUSTOMS WOULD PUT INTO
PLACE SIGNED AND AGREED UPON RECORD RETENTION
AGREEMENTS WITH IMPORTERS. CUSTOMS WOULD NOT
CERTIFY FINANCIAL RECORDKEEPING SYSTEMS BUT WOULD
CONDUCT SYSTEM REVIEWS AND IDENTIFY WEAKNESSES SO
THAT CORRECTIVE ACTION COULD TAKE PLACE PRIOR TO
SIGNING OF AGREEMENTS.

THE BENEFITS TO AN IMPORTER PARTICIPATING IN ALL THREE TIERS
WOULD BE AS FOLLOWS:

O CERTAINTY OF CUSTOMS REQUIREMENTS;

O IMPROVEMENT IN INTRA-COMPANY COMMUNICATION ON
IMPORTATION ACTIVITIES;

O REDUCED RECORDKEEPING PENALTY LIABILITY; AND

O REDUCED ADMINISTRATIVE EXPENSES AND PREVENTION OF
LOSS OF PRODUCTIVITY:

- CUSTOMS AUDITS DONE FASTER
- REDUCED POTENTIAL FOR INVESTIGATIONS
- REDUCED LEGAL EXPENSES.

IN ADDITION TO AMENDING THE RECORDKEEPING REQUIREMENTS,
CONGRESS ALSO AMENDED THE STATUTE TO FORMALIZE THE REGULATORY
AUDIT PROCEDURES. REGULATORY AUDITS WILL REQUIRE ADVANCE
NOTIFICATION (EXCLUDING QUANTITY VERIFICATION OF BONDED
WAREHOUSES AND FOREIGN TRADE ZONES), ENTRY AND CLOSING
CONFERENCES, PREPARATION OF WRITTEN AUDIT REPORTS WITHIN 90 DAYS
FOLLOWING THE CLOSING CONFERENCE, AND TRANSMITTAL OF A COPY OF
THE AUDIT REPORT TO THE AUDIT PARTY WITHIN 30 DAYS OF COMPLETION
OF THE AUDIT. THESE REQUIREMENTS WILL BE IN EFFECT UNLESS A
FORMAL INVESTIGATION HAS BEEN COMMENCED.

SUMMARY CONTINUED

IN ORDER TO IMPLEMENT THE MOD ACT, CUSTOMS MUST PROCEED WITH
THE FOLLOWING ACTIVITIES:

O DETERMINE THE AUTOMATED COMMERCIAL SYSTEM (ACS) CORE DATA
ELEMENTS FOR STATISTICAL COUNTS, CLEARANCE AND ENTRY OF
MERCHANDISE;

O AMEND THE REGULATIONS TO ADDRESS THE NEW RECORDKEEPING
REQUIREMENTS;

O PREPARE AND PUBLISH A LIST OF REQUIRED ENTRY RECORDS THAT
MUST BE MAINTAINED BY THE IMPORTING COMMUNITY {(A)(1)(A)
LIST}. IF RECORDS ARE NOT PROVIDED TO CUSTOMS UPON DEMAND,
IMPORTERS WOULD BE SUBJECT TO PENALTIES;

O DETERMINE WHO WILL BE ELIGIBLE TO BE A CERTIFIED
RECORDKEEPER (COULD A BROKER AND OR THIRD PARTY BE A
RECORDKEEPER );

O DETERMINE WHO WILL PARTICIPATE AND HOW THE RECORDKEEPING
PROGRAM WILL OPERATE. (CAN A SELF CERTIFICATION PROGRAM BE
IMPLEMENTED OR CAN ACCOUNTING FIRMS BE CERTIFIERS );

O EXPAND THE RECORDKEEPING COMPLIANCE PROGRAM TO FINANCIAL
RECORDS. (ADD TWO ADDITIONAL REQUIREMENTS - MANUALS
OUTREACH TRAINING AND RECORD RETENTION AGREEMENTS);

O DEVELOP RECORDKEEPING MANUALS AND BROCHURES SUCH AS:
(1) CERTIFICATION AND RETENTION OF ENTRY RECORDS, (2)
FINANCIAL RECORDS THAT SUPPORT ENTRY RECORDS, AND (3)
RECORD RETENTION AGREEMENTS;

O IMPLEMENT A RECORDKEEPING MANUAL OUTREACH TRAINING
PROGRAM (ENTRY AND FINANCIAL);

O REVISE REGULATORY AUDIT POLICY AND PROCEDURES; AND

O DETERMINE HOW TO HANDLE THE REGULATORY AUDIT REQUIREMENT
TO INFORM AUDITEE SCOPE OF AUDIT (I.E. PART OF AN
INVESTIGATION).

THE FOLLOWING PAGES ADDRESS THE ISSUES OF STATUTORY
AMENDMENTS, CONGRESSIONAL INTENT, PROPOSALS FOR ACTION, AND
OUTSTANDING ACTIONS IN MORE DETAIL.

MOD ACT CHANGES TO RECORDKEEPING REQUIREMENTS
IN 19 U.S.C. 1508 AND 1509

THE ENACTMENT OF THE CUSTOMS MODERNIZATION ACT EXPANDED THE
PARTIES SUBJECT TO THE RECORDKEEPING REQUIREMENTS OF 19 U.S.C.
1508 TO ANYONE:

O FILING AN ENTRY OR DECLARATION;

O TRANSPORTING OR STORING BONDED MERCHANDISE;

O FILING DRAWBACK CLAIMS;

O ACTING AS AN AGENT FOR THE ABOVE ACTIVITIES; AND

O EXPORTING TO FREE TRADE COUNTRIES (E.G., NAFTA).

THE ABOVE PARTIES ARE REQUIRED TO MAINTAIN AND PRODUCE "RECORDS"
(STATEMENTS, DECLARATIONS, DOCUMENTS AND ELECTRONICALLY GENERATED
OR MACHINE READABLE DATA) PERTAINING TO ANY ACTIVITY, OR TO THE
INFORMATION CONTAINED IN THE RECORDS REQUIRED BY THE ACT IN
CONNECTION WITH ANY SUCH ACTIVITY, THAT ARE NORMALLY KEPT IN THE
ORDINARY COURSE OF BUSINESS. THE MOD ACT ALSO DEFINED THE TIME
PERIOD THAT RECORDS MUST BE MAINTAINED. DRAWBACK CLAIMS MUST
KEPT FOR THREE YEARS FROM THE DATE THE DRAWBACK CLAIM IS PAID AND
ALL OTHER RECORDS INCLUDING THOSE PERTAINING TO EXPORTATIONS TO
CANADA WILL BE REQUIRED TO BE KEPT FOR FIVE YEARS FROM THE DATE
OF IMPORTATION OR EXPORTATION.

THE CUSTOMS MODERNIZATION ACT ALSO AMENDED THE EXAMINATION
OF BOOKS AND WITNESS REQUIREMENTS OF 19 U.S.C. 1509. THE ACT
ADDED THE FOLLOWING ITEMS TO 19 U.S.C. 1509:

O ELECTRONICALLY GENERATED OR MACHINE READABLE DATA FALL
WITHIN THE DEFINITION OF RECORDS AND AS SUCH, MAY BE
EXAMINED UPON REQUEST;

O RECORDS REQUIRED FOR ENTRY SHALL BE PRODUCED FOR CUSTOMS
EXAMINATION WITHIN A REASONABLE TIME FRAME REGARDLESS OF THE
FACT THAT CUSTOMS WAIVED THEIR PRESENTATION AT ENTRY. WHEN
REQUESTING RECORDS, CUSTOMS WILL TAKE INTO CONSIDERATION THE
NUMBER, TYPE AND AGE OF ITEM DEMANDED;

O CUSTOMS WILL BE REQUIRED TO IDENTIFY AND PUBLISH A LIST
OF RECORDS OR ENTRY INFORMATION THAT MUST BE MAINTAINED AND
PRODUCED. THIS LIST HAS BECOME BE KNOWN AS THE (A)( 1)(A)
LIST ;
O PARTIES FAILING TO COMPLY WITH DEMAND FOR PRODUCTION OF
(A)(1)(A) RECORDS MAY BE SUBJECT TO ADMINISTRATIVE PENALTIES
OF THE FOLLOWING:

- FOR WILLFUL FAILURE, THE PENALTY WILL BE THE LESSEROF
$100,000 OR 75 OF APPRAISED VALUE FOR EACH RELEASE;

- FOR NEGLIGENCE, THE PENALTY WILL BE THE LESSER OF
$10,000 OR 40 OF APPRAISED VALUE FOR EACH RELEASE;

- IF REQUESTED INFORMATION RELATES TO THE ELIGIBILITY
OF MERCHANDISE FOR A COLUMN 1 SPECIAL RATE OF DUTY, IN
ADDITION TO ISSUING A PENALTY, CUSTOMS MAY LIQUIDATE AN
ENTRY AT THE COLUMN 1 GENERAL RATE OF DUTY. OR IF THE
ENTRY LIQUIDATED IN A TWO YEAR PERIOD PRECEDING DATE OF
DEMAND, CUSTOMS MAY RELIQUIDATE THE ENTRY AT THE COLUMN
1 GENERAL RATE OF DUTY.

O NO PENALTIES WILL BE ASSESSED FOR FAILING TO PROVIDE
ENTRY RECORDS IF THE FOLLOWING OCCURS:

- INFORMATION IS LOST AS A RESULT OF AN ACT
OF GOD OR OTHER NATURAL DISASTER;

- DEMAND WAS SUBSTANTIALLY COMPLIED WITH, BY THE USE
OF OTHER EVIDENCE;

- DEMANDED INFORMATION WAS PRESENTED TO, AND RETAINED
BY, CUSTOMS, AT THE TIME ENTRY OR SUBMITTED IN
RESPONSE TO AN EARLIER DEMAND;

- A CUSTOMS CERTIFIED ENTRY RECORDKEEPER IN THE
ABSENCE OF WILLFULNESS AND REPEATED VIOLATIONS FAILS TO
PROVIDE INFORMATION. CUSTOMS WILL ISSUE A NOTICE OF
VIOLATION FOR FIRST TIME NEGLIGENT VIOLATIONS OF THE
NEW RECORDKEEPING AND DRAWBACK PENALTIES. REPEATED
VIOLATIONS BY A CERTIFIED RECORDKEEPER MAY RESULT IN
THE ISSUANCE OF PENALTIES AND REMOVAL OF CERTIFICATION
UNTIL SATISFACTORY CORRECTIVE ACTION IS TAKEN.

O THE MOD ACT ESTABLISHES A CUSTOMS "RECORDKEEPING
COMPLIANCE PROGRAM" FOR PARTIES SUBJECT TO RECORDKEEPING
REQUIREMENTS IN 19 U.S.C. 1508. THIS PROGRAM WILL BE
VOLUNTARY AND DEVELOPED IN COOPERATION WITH THE IMPORTING
COMMUNITY. RECORDKEEPERS WILL BE CERTIFIED BY CUSTOMS IF
THEY DEMONSTRATE COMPREHENSION OF LEGAL RECORDKEEPING
REQUIREMENTS, IMPLEMENT PROCEDURES FOR EXPLAINING
RECORDKEEPING REQUIREMENTS TO EMPLOYEES, MAINTAIN
RECORDKEEPING PROCEDURES, DESIGNATE DEPENDABLE INDIVIDUALS
TO BE RESPONSIBLE FOR THE RECORDKEEPING PROGRAM,ESTABLISH
PROCEDURES TO NOTIFY CUSTOMS OF VARIANCES AND VIOLATIONS OF
THE RECORDKEEPING PROGRAM, AND TAKE CORRECTIVE ACTION WHEN
NOTIFIED BY CUSTOMS OF VIOLATIONS OR PROBLEMS REGARDING SUCH
PROGRAM.

O THE MOD ACT FORMALIZED REGULATORY AUDIT PROCEDURES.
REGULATORY AUDITS WILL REQUIRE ADVANCE NOTIFICATION
(EXCLUDING QUANTITY VERIFICATION OF BONDED WAREHOUSES AND
FOREIGN TRADE ZONES), ENTRY AND CLOSING CONFERENCES,
PREPARATION OF WRITTEN AUDIT REPORTS WITHIN 90 DAYS
FOLLOWING THE CLOSING CONFERENCE, AND TRANSMITTAL OF A COPY
OF THE AUDIT REPORT TO THE AUDIT PARTY WITHIN 30 DAYS OF
COMPLETION OF THE AUDIT, UNLESS A FORMAL INVESTIGATION HAS
BEEN COMMENCED.

O EXPANDED PARTIES SUBJECT TO CUSTOMS SUMMONS TO INCLUDE
PARTIES WHO EXPORT TO CANADA, TRANSPORT OR STORE MERCHANDISE
UNDER BOND OR FILE ANY DECLARATION, ENTRY OR DRAWBACK CLAIM
WITH CUSTOMS.

ADDITIONAL RECORDS REQUIRED
BY 19 U.S.C. 1508 AND 1509

UNDER 19 U.S.C. 1508 AND 1509 CUSTOMS HAS THE AUTHORITY TO
REQUEST, EXAMINE AND SUMMONS RECORDS THAT PERTAIN TO IMPORTATIONS
(INCLUDING VESSEL REPAIRS), DRAWBACK, BONDED MERCHANDISE, AND
EXPORTS TO FREE TRADE COUNTRIES KEPT IN THE ORDINARY COURSE OF
BUSINESS*. THE FAILURE TO PROVIDE RECORDS KEPT IN THE ORDINARY
COURSE OF BUSINESS ARE NOT SUBJECT TO THE NEW RECORDKEEPING
PENALTIES (PENALTIES ARE FOR NOT PRODUCING (A)(1)(A) ENTRY
RECORDS). HOWEVER, RECORDS KEPT IN THE NORMAL COURSE OF BUSINESS
ARE SUBJECT TO CUSTOMS EXAMINATION AND SUMMONS AUTHORITY,
ENFORCEABLE IN COURT. 19 U.S.C. 1510 ALLOWS THE COURTS TO HOLD
PARTIES IN CONTEMPT OF COURT FOR FAILING TO FOLLOW A COURT ORDER
AND ALSO PERMITS MONETARY PENALTIES TO BE ASSESSED. IF A PARTY
REFUSES TO OBEY A LAWFUL SUMMONS, THE SECRETARY OF TREASURY, MAY,
IN ADDITION TO COURT ORDERED PUNISHMENT, PROHIBIT THAT PARTY FROM
IMPORTING INTO THE CUSTOMS TERRITORY OF THE UNITED STATES AND MAY
WITHHOLD DELIVERY OF ALL IMPORTED MERCHANDISE. IF THE PARTY
REMAINS IN CONTEMPT OF COURT FOR MORE THAN ONE YEAR AFTER THE
DATE THE MERCHANDISE IS FORMALLY WITHHELD FOR DELIVERY, CUSTOMS
CAN SELL AT PUBLIC AUCTION OR OTHERWISE DISPOSE OF UNDER THE
CUSTOMS LAWS ALL MERCHANDISE HELD IN CUSTOMS CUSTODY FOR THAT
PARTY.

* EXAMPLES OF RECORDS WHICH ARE TYPICALLY MAINTAINED FOR
CERTAIN TYPES OF ENTRIES THAT ARE KEPT IN THE ORDINARY
COURSE OF BUSINESS FOR WHICH CUSTOMS HAS THE AUTHORITY TO
REQUEST, EXAMINE AND SUMMONS ARE AS FOLLOWS: GENERAL

LEDGERS, TRIAL BALANCE, TAX RETURNS, AUDITED FINANCIAL
STATEMENTS, SUPPORTING INPUT DOCUMENTS TO THE GENERAL
AND SUBSIDIARY LEDGERS, CHART OF ACCOUNTS, LETTERS OF
CREDIT ACCOUNTS PAYABLE, ACCOUNTS RECEIVABLE, CASH
DISBURSEMENTS AND RECEIPTS JOURNAL, PURCHASE
ORDERS CONTRACTS, CONTRACTS, BUYING AGENCY AGREEMENTS,
INSPECTION SERVICE AGREEMENTS, DEBIT ADVICES, WIRE
TRANSFERS, CANCELLED CHECKS, CERTIFICATES OF ORIGIN,
VENDOR FILES, FREIGHT INVOICES, SELLING CONTRACTS,
CORRESPONDENCE FILES, IRS 1099S, ROYALTY OR FEE
AGREEMENTS CONTRACTS, CAPITAL ASSET REGISTER AND
DEPRECIATION SCHEDULES, EXPORT SHIPPING DOCUMENTS,
COMMERCIAL ENTRY INVOICES, INVENTORY RECORDS, STANDARD
PRODUCT COST SHEETS, BANK STATEMENTS, STANDARD NON-
STANDARD AND SUPPORTING DOCUMENTS FOR JOURNAL ENTRIES,
VENDOR CATALOGS, PACKING LIST, RECEIVING REPORTS,
OVERAGE SHORTAGE RECORDS, INTERNATIONAL
FREIGHT INSURANCE AGREEMENTS CONTRACTS WITH CARRIERS,
YEAR END ENTRY ADJUSTMENTS, INTERNAL AUDITS, INTERNAL
CORRESPONDENCE FILES, TELEX FILES, BOARD MEETING NOTES,
SOP'S ON PURCHASING, RECEIVING, STORING, ACCOUNTING AND
INTERNAL CONTROLS, BILLS OF MATERIAL, ADVERTISING
MATERIALS, MISCELLANEOUS CORRESPONDENCE, PRODUCT
SPECIFICATIONS, ENGINEERING SPECIFICATIONS,
CERTIFICATES OF USE, BILLS OF LADING AIRWAY BILLS,
DOCUMENTS FOR COUNTERVAILING AND ANTIDUMPING ORDERS
(COST OF PRODUCTION, FOREIGN MARKET PRICES, EXPORTER'S
SALES PRICE, SUBSIDY BENEFITS) , PROOF OF IMPORT, PROOF
OF EXPORT, PROOF OF U.S. ORIGIN, PROOF OF VALUE COST OF
U.S. ORIGIN MATERIALS, FOREIGN PROCESSING COST
INFORMATION, QUOTA AND VISA RECORDS AND STATEMENTS,
CONTRACTS STIPULATING INTELLECTUAL PROPERTY RIGHTS COPY
RIGHTS TRADEMARK, AND ENTRY FILES.

CUSTOMS PROPOSES THAT ADDITIONAL REQUIREMENTS BE ADDED TO
THE VOLUNTARY BASIC STATUTORY RECORDKEEPING COMPLIANCE PROGRAM.
RECORDS KEPT IN THE ORDINARY COURSE OF BUSINESS WOULD BE
INCLUDED IN THE PROGRAM. THE PROGRAM WOULD REQUIRE THAT RECORDS
KEPT IN THE ORDINARY COURSE OF BUSINESS BE LINKED TO
DECLARATIONS, ENTRY RECORDS AND INCLUDE REFERENCE NUMBERS. THESE
DOCUMENTS WOULD THEN PROVIDE AN AUDIT TRAIL THAT COULD BE EASILY
TRACED BY BOTH THE COMPANY AND CUSTOMS.

CONGRESSIONAL INTENT
BEHIND THE AMENDMENTS TO 19 U.S.C 1508, 1509, AND 1510

THE CONGRESSIONAL REPORT TO THE MOD ACT STATES THAT
AMENDMENTS TO THE STATUTE WERE MADE TO CLARIFY THE RECORDKEEPING
REQUIREMENTS FOR THE IMPORTING COMMUNITY, TO ADD RECORDS
MAINTAINED IN AN ELECTRONIC MODE TO THE DEFINITION OF RECORDS,
AND TO CLOSE LOOPHOLES IN RECORDKEEPING REQUIREMENTS. THE REPORT
STATES

THAT CONGRESS ALSO INTENDED TO LIMIT CUSTOMS EXAMINATION
AUTHORITY TO THOSE RECORDKEEPING REQUIREMENTS OUTLINED IN 19
U.S.C. 1508 AND 1509. CONGRESS LIMITED CUSTOMS AUTHORITY
BECAUSE THEY DID NOT WANT "FISHING EXPEDITIONS" WHEN REQUIRING
IMPORTERS TO MAINTAIN AND PRODUCE RECORDS FOR AUDIT OR
INSPECTION.

THE STATUTE WAS AMENDED TO REQUIRE CUSTOMS TO MAKE AVAILABLE
TO THE IMPORTING COMMUNITY A LIST OF ALL RECORDS, STATEMENTS,
DECLARATIONS OR DOCUMENTS REQUIRED BY LAW OR REGULATION FOR THE
ENTRY OF MERCHANDISE THAT PARTIES ARE TO MAINTAIN AND PRODUCE
UPON CUSTOMS REQUEST. CONGRESS ALSO INTENDED THAT A "REASONABLE
TIME" STANDARD BE INSTITUTED FOR FURNISHING DOCUMENTS TO CUSTOMS
DEPENDENT UPON THE NUMBER, TYPE, AND AGE OF THE ITEM DEMANDED.
THE STATUTE ALSO WAS AMENDED TO INCLUDE A VOLUNTARY
"RECORDKEEPING COMPLIANCE PROGRAM" WHEREBY CUSTOMS WOULD
ESTABLISH A PROGRAM TO CERTIFY RECORDKEEPERS OF ENTRY RECORDS.

PENALTIES FOR FAILURE TO MAINTAIN AND PRODUCE RECORDS OR
ENTRY INFORMATION UPON CUSTOMS REQUEST WAS ADDED TO THE STATUTE
BECAUSE CUSTOMS HAD NO ADMINISTRATIVE RECOURSE OTHER THAN COURT
SUMMONS WHEN REQUESTS FOR RECORDS WERE IGNORED. HOWEVER,
CONGRESS STATED THAT THE IMPOSITION OF A PENALTY FOR FAILURE TO
PRODUCE RECORDS IS NOT MANDATORY ON CUSTOMS PART AND ANY PENALTY
MAY BE REMITTED OR MITIGATED. PENALTIES ARE LIMITED TO ONLY
THOSE RECORDS THAT ARE REQUIRED FOR ENTRY OF MERCHANDISE. IN
ADDITION, PARTICIPANTS IN THE RECORDKEEPING COMPLIANCE PROGRAM
WOULD BE ELIGIBLE TO ESCAPE PENALTIES FOR FIRST TIME NEGLIGENT
VIOLATIONS OF RECORDKEEPING REQUIREMENTS.

RECORDS KEPT IN THE "ORDINARY COURSE OF BUSINESS" THAT
PERTAIN TO IMPORTATION, DRAWBACK, BONDED MERCHANDISE, AND EXPORTS
TO FREE TRADE COUNTRIES THAT ARE NOT PRODUCED UPON REQUEST ARE
NOT SUBJECT TO THE RECORDKEEPING PENALTIES BUT ARE SUBJECT TO
CUSTOMS SUMMONS AUTHORITY ENFORCEABLE BY THE COURTS. THE STATUTE
WAS AMENDED TO ALLOW THE COURTS TO HOLD PARTIES IN CONTEMPT OF
COURT IF THEY FAIL TO FOLLOW A COURT ORDER TO PRODUCE RECORDS AND
MONETARY PENALTIES MAY BE ASSESSED BY THE COURTS, AS WELL. IN
ADDITION TO COURT ORDERED PUNISHMENT, THE STATUTE ALSO ALLOWS
THE SECRETARY OF TREASURY TO PROHIBIT A PARTY FROM IMPORTING INTO
THE CUSTOMS TERRITORY OF THE UNITED STATES AND WITHHOLD DELIVERY
OF ALL IMPORTED MERCHANDISE FOR FAILURE TO PRODUCE SUMMONED
RECORDS. IF THE PARTY REMAINS IN CONTEMPT OF COURT FOR MORE THAN
ONE YEAR AFTER THE DATE THE MERCHANDISE IS FORMALLY WITHHELD FOR
DELIVERY, CUSTOMS MAY SELL AT A PUBLIC AUCTION OR OTHERWISE
DISPOSE OF UNDER THE CUSTOMS LAWS ALL MERCHANDISE HELD IN CUSTOMS
CUSTODY FOR THAT PARTY.

CONGRESS INTENDED THE MOD ACT TO USHER IN AN ERA OF
"INFORMED COMPLIANCE" AND ONE METHOD IS THE EXPANDED USE OF THE
REGULATORY AUDIT PROGRAM. CONGRESS AMENDED THE STATUTE TO
CLEARLY DEFINE PROCEDURES FOR THE CONDUCT OF REGULATORY AUDITS.
CONGRESS ALSO INTENDED THAT AUDITS AND AUDIT REPORTS BE USED TO
POINT OUT RECORDKEEPING DEFICIENCIES. THE DEFICIENCIES COULD
THEN BE CORRECTED SO AS TO AVOID FUTURE PROBLEMS.

CONGRESS INTENDED FOR BROKERS (INCLUDING THOSE ACTING AS
IMPORTER OF RECORD) WHO FAIL TO PRODUCE (A)(1)(A) RECORDS UPON
REQUEST TO BE GENERALLY SUBJECT TO BROKER PENALTIES UNDER 19
U.S.C. 1641 RATHER THAN UNDER THE RECORDKEEPING PENALTIES.

PROPOSALS FOR THE REVITALIZATION
OF THE CUSTOMS RECORDKEEPING PROGRAM

1. AMEND CUSTOMS REGULATIONS PART 162- RECORDKEEPING, INSPECTION,
SEARCH, AND SEIZURE AND OTHER APPLICABLE CUSTOMS REGULATIONS.

THE FOLLOWING ITEMS NEED TO BE DECIDED UPON BEFORE REGULATIONS
CAN BE WRITTEN:

(A) DETERMINE THE ACS CORE DATA ELEMENTS FOR STATISTICAL COUNTS,
CLEARANCE, AND ENTRY OF MERCHANDISE;

(B) IDENTIFY (IN COOPERATION OF THE TRADE COMMUNITY) OF A LIST
OF RECORDS OR ENTRY INFORMATION THAT MUST BE MAINTAINED AND
PRODUCED UPON REQUEST BY ANYONE FILING AN ENTRY OR DECLARATION,
TRANSPORTING OR STORING BONDED MERCHANDISE; FILING A DRAWBACK
CLAIM; ACTING AS AN AGENT ON BEHALF OF THE PREVIOUSLY MENTIONED
PARTIES AND EXPORTING TO A FREE TRADE COUNTRY.

A DRAFT DOCUMENT RETENTION LIST HAS BEEN DEVELOPED (SEE ATTACHED
LIST, PAGE 19). REPRESENTATIVES FROM THE TEXTILE INDUSTRY HAVE
REVIEWED THE DOCUMENT AND STATE THAT THE LIST SHOULD CONTAIN ONLY
THOSE DOCUMENTS WHICH IMPORTERS NOW SUBMIT AT ENTRY BUT WHICH,
UNDER THE MOD ACT REGIME, WILL NOT BE PROVIDED ALTHOUGH THE
IMPORTER WILL REPRESENT, BY MAKING THE ENTRY, THAT THE DOCUMENT
AND OR INFORMATION IS AVAILABLE. THE TEXTILE INDUSTRY ALSO
STATED THAT THE LIST SHOULD REFERENCE INFORMATION RATHER THAN A
DOCUMENT. OF PARTICULAR CONCERN TO THE TEXTILE INDUSTRY WAS THE
VARIOUS REFERENCES TO VISA DOCUMENTS. THEY STATE THAT IT IS
ANTICIPATED THAT AN ELECTRONIC TRANSMISSION VIA THE ELECTRONIC
VISA INFORMATION SYSTEM (ELVIS) WILL AUTHORIZE THE EXPORTATION
AND THAT THE IMPORTER WILL NOT BE IN PHYSICAL POSSESSION OF
DOCUMENTS (VISA, EXPORT LICENSES, ETC.).

(C) DECIDE HOW TO IMPLEMENT THE VOLUNTARY CUSTOMS RECORDKEEPING
COMPLIANCE PROGRAM FOR CERTIFYING RECORDKEEPERS OF "ENTRY
RECORDS".

19 U.S.C. 1509 WAS AMENDED TO PROVIDE IMPORTERS WITH THE
OPPORTUNITY TO VOLUNTARILY PARTICIPATE IN A RECORDKEEPING
COMPLIANCE PROGRAM, WHERE BY IF THEY MET ALL THE APPLICABLE
CRITERIA THEY MIGHT AVOID PENALTIES FOR FAILURE TO PRODUCE
RECORDS.

THE NATIONAL CUSTOMS BROKERS AND FORWARDERS ASSOCIATION OF
AMERICA, INC. HAS WRITTEN CUSTOMS SUGGESTING THAT BROKERS BE
ALLOWED TO SERVE AS IMPORTERS' CERTIFIED ENTRY
RECORDKEEPERS.

(1) WHO WILL BE ALLOWED TO BE A CERTIFIED RECORDKEEPER

IMPORTERS AND OR AGENT (THIRD PARTY RECORDKEEPER-BROKER,
ACCOUNTANT, ATTORNEY).

OPTIONS--RECORDKEEPERS

O ALLOW ONLY IMPORTERS TO PARTICIPATE. IMPORTERS WOULD BE
SUBJECT TO CUSTOMS ADMINISTRATIVE ACTION AS PROVIDED FOR IN
THE MOD ACT FOR NON-COMPLIANCE.

O ALLOW IMPORTERS AND AGENTS (ACCOUNTANT, BROKER, THIRD
PARTY) TO BE CERTIFIED RECORDKEEPERS BUT ALL PARTIES WOULD
BE SUBJECT TO CUSTOMS ADMINISTRATIVE ACTION AS PROVIDED FOR
IN THE MOD ACT FOR NON-COMPLIANCE.

O ALLOW BROKERS TO BE CERTIFIED RECORDKEEPERS. BROKERS WOULD
BE SUBJECT TO CUSTOMS ADMINISTRATIVE ACTION AS PROVIDED FOR
IN THE MOD ACT FOR NON-COMPLIANCE.

(2) WHO WILL CONDUCT THE RECORDKEEPING CERTIFICATIONS
(ENTRY RECORDS)

- DDS (IMPORT SPECIALISTS PIRP), OR

- REGULATORY AUDIT DIVISIONS, OR ACCOUNTING FIRMS;

- OR ALLOW IMPORTER SELF CERTIFICATIONS

OPTIONS-- CERTIFICATION

O AUDITORS AND OR IMPORT SPECIALISTS AND OR ACCOUNTING FIRMS
WOULD PERFORM ENTRY RECORDKEEPING CERTIFICATIONS.

O ALLOW SELF CERTIFICATIONS.

- SELF CERTIFICATIONS PROCEDURES WOULD BE DEVELOPED AND
PLACED IN THE CUSTOMS REGULATIONS.

-SELF CERTIFICATIONS WOULD BE SENT TO REGULATORY AUDIT
DIVISIONS (RADS) AND KEPT ON FILE WITH THEM. SELF
CERTIFIERS WOULD PROVIDE RADS WITH ANNUAL CERTIFICATIONS AS
WELL AS UPDATES AND NOTIFICATION OF PROBLEMS. RADS WOULD
REMOVE IMPORTERS FROM CERTIFICATION PROGRAM IF THEY WERE
FOUND TO BE IN NON-COMPLIANCE.

-AUDITORS AND IMPORT SPECIALISTS WOULD CONDUCT REVIEWS OF
SELF CERTIFICATIONS OF THE LARGEST IMPORTERS DURING ALL PIRP
REVIEWS AND AUDITS. IN ADDITION, REVIEWS WOULD BE
SEPARATELY CONDUCTED FOR MODERATE TO SMALL IMPORTERS'
CERTIFICATIONS ON AN ANNUAL BASIS IF THESE IMPORTERS WERE
NOT BEING AUDITED.

-REASON FOR SELF CERTIFICATION: CUSTOMS DOES NOT HAVE
RESOURCES TO CERTIFY ALL IMPORTERS.

D) DETERMINE IF THE RECORDKEEPING COMPLIANCE PROGRAM WILL
BE EXPANDED TO COVER THE RECORDS THAT IMPORTERS KEEP IN THE
ORDINARY COURSE OF BUSINESS TO SUPPORT IMPORTATIONS
(FINANCIAL RECORDS THAT SUPPORT ENTRY DOCUMENTS).

REGULATORY AUDIT BELIEVES THAT THIS EXPANDED PROGRAM WILL
INSURE IMPROVED COMPLIANCE WITH CUSTOMS LAWS, REGULATIONS,
RULINGS, AND PROCEDURES. IMPORTERS WILL BENEFIT BECAUSE
THERE WILL BE MONETARY SAVINGS (REDUCED PENALTIES AND MORE
EXPEDITIOUS AUDITS).

PROPOSAL

THE OFFICE OF REGULATORY AUDIT PROPOSES THE FOLLOWING THREE
TIER RECORDKEEPING COMPLIANCE PROGRAM:

TIER I - CERTIFICATION AND RETENTION OF (A)(1)(A) ENTRY
RECORDS
(VOLUNTARY STATUTORY PROGRAM)

OPTIONS

O AUDITORS, IMPORT SPECIALISTS AND OR ACCOUNTING FIRMS
WOULD CONDUCT CERTIFICATIONS.

O IMPORTERS WOULD CERTIFY THAT THEY MEET THE APPLICABLE
CRITERIA AND FILE THE REQUIRED DOCUMENTATION WITH THE
APPROPRIATE REGULATORY AUDIT DIVISION.

TIER II - LINKAGE OF FINANCIAL RECORDS TO ENTRY RECORDS
(VOLUNTARY PROGRAM)

OPTIONS

O ADD RECORDS KEPT IN THE ORDINARY COURSE OF BUSINESS
TO THE CERTIFICATION PROGRAM.

O CUSTOMS WOULD DEVELOP RECORDKEEPING MANUALS TO ASSIST
THE IMPORTING COMMUNITY WITH UNDERSTANDING THE REQUIRED
RECORDKEEPING STANDARDS.

O REGULATORY AUDIT WOULD CONDUCT OUTREACH PROGRAMS
WHICH WOULD EXPLAIN THE NEED TO HAVE PROCEDURES IN
PLACE TO LINK FINANCIAL RECORDS TO ENTRY RECORDS.
ATTENDEES WOULD BE GIVEN AN ATTENDANCE CERTIFICATE.

O MEMBERS OF THE IMPORTING COMMUNITY WOULD BE INVITED
TO ATTEND TRAINING COURSES ON VALUATION,
CLASSIFICATION, ENTRY REQUIREMENTS, AND THE NEED TO
HAVE FINANCIAL RECORDS SUPPORT ENTRY DOCUMENTS.
ATTENDEES WOULD BE GIVEN A TRAINING CERTIFICATE.
COURSES WOULD BE TAUGHT BY AUDITORS, IMPORT
SPECIALISTS, ATTORNEYS, AND OUTSIDE CONSULTANTS.

TIER III - FINANCIAL RECORDKEEPING RETENTION AGREEMENTS
(VOLUNTARY PROGRAM)

O BASED UPON CUSTOMS CRITERIA SUCH AS NEED, RISK, ENTRY
VOLUME AND RESOURCES, CUSTOMS WOULD PUT INTO PLACE
SIGNED AND AGREED UPON RECORD RETENTION AGREEMENTS WITH
IMPORTERS. PARTICIPANTS WOULD HAVE TO BELONG TO ALL
RECORDKEEPING COMPLIANCE PROGRAMS. CUSTOMS WOULD NOT
CERTIFY FINANCIAL RECORDKEEPING SYSTEMS BUT WOULD
CONDUCT SYSTEM REVIEWS AND IDENTIFY WEAKNESSES SO THAT
CORRECTIVE ACTION COULD TAKE PLACE PRIOR TO SIGNING OF
AGREEMENTS.

(E) DETERMINE HOW TO HANDLE THE NEW MOD ACT REQUIREMENTS THAT
REQUIRE AUDITORS TO INFORM AUDITEES OF THE SCOPE AND REASON FOR
AUDIT. DETERMINE HOW AUDITORS WHO ARE PERFORMING AUDITS FOR
INVESTIGATIONS WILL HANDLE THE AUDIT REASON AND SCOPE ISSUE.

RECOMMENDATION:

CHIEF COUNSEL, OR R, ORA AND THE OFFICE OF ENFORCEMENT
DETERMINE HOW TO HANDLE THIS NOTIFICATION ISSUE.

(F) REVISE REGULATORY AUDIT POLICIES AND PROCEDURES TO
CONFORM TO THE NEW MOD ACT REQUIREMENTS.

CURRENTLY THE OFFICE OF REGULATORY AUDIT IS REVISING
INTERNAL DIRECTIVES TO REFLECT THE NEW MOD ACT REQUIREMENTS.

2. DEVELOP RECORDKEEPING MANUALS, BROCHURES AND AN
OUTREACH TRAINING PROGRAM

(A) MANUALS AND BROCHURES

O MANUAL I AND BROCHURE - CERTIFICATION AND RETENTION
OF ENTRY RECORDS.

OFFICES OF RESPONSIBILITY: OFFICE OF TRADE
OPERATIONS, OFFICE OF REGULATORY AUDIT, AND
OFFICE OF REGULATIONS AND RULINGS

O MANUAL II AND BROCHURE - LINKAGE OF FINANCIAL
RECORDS TO ENTRY RECORDS

OFFICE OF RESPONSIBILITY: OFFICE OF REGULATORY AUDIT

O MANUAL III AND BROCHURE - FINANCIAL RECORDKEEPING
AGREEMENTS

OFFICE OF RESPONSIBILITY: OFFICE OF
REGULATORY AUDIT

(B) OUTREACH AND TRAINING PROGRAMS

O CUSTOMS WILL IMPLEMENT AN OUTREACH PROGRAM EXPLAINING
THE NEED TO HAVE PROCEDURES IN PLACE TO LINK FINANCIAL
RECORDS TO ENTRY RECORDS. ATTENDEES WOULD BE GIVEN AN
ATTENDANCE CERTIFICATE.

O A TRAINING PROGRAM FOR IMPORTERS, BROKERS, AGENTS,
ETC. SHOULD BE DEVELOPED TO EDUCATE THE IMPORTING
COMMUNITY ON VALUE, ENTRY, CLASSIFICATION, AND THE NEED
TO HAVE FINANCIAL RECORDS FOR SUPPORT OF ENTRY
DOCUMENTATION. REGULATORY AUDIT WILL NOT BE ABLE TO
CERTIFY ALL FINANCIAL RECORDKEEPING PROGRAMS SO A
TRAINING PROGRAM WILL ASSIST WITH IMPROVING VOLUNTARY
COMPLIANCE UNTIL AGREEMENTS CAN BE DEVELOPED AND PUT IN
PLACE.

OFFICE OF RESPONSIBILITY FOR DEVELOPING
OUTREACH TRAINING PROGRAMS:

-OCO TRAINING STAFF
-OTO
-ORA RADS
-ORR

OUTREACH TRAINING PROGRAMS WILL BE CONDUCTED BY IMPORT
SPECIALISTS, AUDITORS, ATTORNEYS, AND CERTIFIED CUSTOMS
INSTRUCTORS.

BENEFITS TO LINKING FINANCIAL RECORDS TO ENTRY RECORDS

COMPANY BENEFITS ARE AS FOLLOWS:

O CERTAINTY OF CUSTOMS REQUIREMENTS;

O IMPROVEMENT IN INTRA-COMPANY COMMUNICATION ON IMPORTATION
ACTIVITIES;

O REDUCED RECORDKEEPING PENALTY LIABILITY; AND

O REDUCED ADMINISTRATIVE EXPENSES AND PREVENTION OF LOSS OF
PRODUCTIVITY:

- CUSTOMS AUDITS DONE FASTER
- REDUCED POTENTIAL FOR INVESTIGATIONS
- REDUCED LEGAL EXPENSES.

CUSTOMS BENEFITS ARE AS FOLLOWS:

O ENSURE PROTECTION OF REVENUE;

O ALLOW DISCIPLINES TO FOCUS ON HIGH RISK AREAS;

O ALLOW FOR COMPLIANCE MEASUREMENTS; AND

O REDUCE ADMINISTRATIVE EXPENSES.

NEED FOR REFERENCE NUMBERS TO LINK RECORDS

CUSTOMS AUDITORS WOULD LIKE TO SEE IMPORTERS RECORD THE
CUSTOMS ENTRY NUMBER AND OR INVOICE NUMBER ON ALL SUPPORTING
DOCUMENTS FOR EACH ENTRY. THIS REFERENCE NUMBER SHOULD BE
CARRIED FORWARD INTO THE FINANCIAL RECORDS. THE USE OF A
REFERENCE NUMBER WOULD CREATE AN AUDIT TRAIL AND ASSIST CUSTOMS
AUDITORS AND OR COMPANIES WITH RECONCILING ENTRY DOCUMENTS WITH
FINANCIAL RECORDS.

UNIVERSE OF FORMS BEING REVIEWED TO DETERMINE
RECORDS INFORMATION TO BE INCLUDED IN THE (A)(1) (A) LIST

NOT PROVIDED

NOTE

THE LIST ON THE NEXT FEW PAGES CONTAINS THE UNIVERSE OF
DOCUMENTS REQUIRED BY CUSTOMS REGULATIONS. CUSTOMS PERSONNEL ARE
USING THE LIST TO DEVELOP THE (A)(1)(A) LIST. CUSTOMS WOULD
WELCOME THE TRADE COMMUNITY'S PROPOSED (A)(1)(A) LIST.

LIST NOT PROVIDED

MOD ACT SECTIONS 614 AND 615 AND 19 U.S.C. 1508 AND 1509

NOT PROVIDED

RECORDKEEPING REQUIREMENTS ACTION PLAN

RECORDKEEPING REQUIREMENTS ACTION PLAN

ITEM RESPONSIBLE OFFICE GOAL

1. DRAFT OF REGULATION ORR OTO ORA OE I C TO BE
DETERMINED

THE FOLLOWING ITEMS NEED TO BE RESOLVED FIRST:

2. FINALIZE ACS CORE OC OI OE I C TO BE
DATA ELEMENTS DETERMINED

3. DEVELOP FINAL ORR ORA CC 7 8 94
(A) (1) (A) LIST OTO OE OI I C
(ENTRY DOCUMENTATION LIST)

4. DETERMINE WHO WILL BE ORR CC 7 8 94
AN ELIGIBLE CERTIFIED
RECORDKEEPER (CAN BROKERS
BE RECORDKEEPERS )

5. DETERMINE WHO AND HOW AC OCO 7 8 94
ENTRY RECORD CERTIF- ORR ORA OTO
ICATION WILL OPERATE
(CUSTOMS ACCOUNTING
FIRMS SELF CERTIFICATION)

6. DETERMINE METHOD FOR AC OCO 7 8 94

EXPANDED RECORDKEEPING ORR CC ORA
COMPLIANCE PROGRAM FOR
FINANCIAL RECORDS.

(TWO ADDITIONAL REQUIREMENTS
OUTREACH TRAINING, AND
RECORD RETENTION AGREEMENTS)

7. DEVELOP RECORDKEEPING ORR ORA OTO 3 30 95
MANUALS AND BROCHURES

RECORDKEEPING REQUIREMENTS ACTION PLAN
CONTINUED

ITEM RESPONSIBLE OFFICES GOAL

8. DEVELOP OUTREACH ORA 3 30 95
TRAINING PROGRAM OTO
(ENTRY AND FINANCIAL OC TRAINING
RECORDS) ORR

A. IMPORTER SITE VISIT ORA 12 94

9. REVISE REGULATORY AUDIT ORA 10 1 94
POLICY AND PROCEDURES

10. DETERMINATION OF OE ORA ORR 7 8 94
REGULATORY AUDIT
REQUIREMENT TO INFORM
AUDITEE OF SCOPE OF AUDIT
(I.E. PART OF AN INVESTIGATION)