CSMS Message: 95-000242

TO : ALL ABI BROKERS.

FROM : ANGELA M DOWNEY

SUBJECT : CHANGES TO BORDER CARGO SELECT

DATE : 03/17/95

TO : NORTHERN BORDER BROKERS

FROM : LOU SAMENFINK, CHIEF
CARGO CONTROL BRANCH

SUBJECT: UPCOMING CHANGES TO BORDER CARGO SELECTIVITY

THIS IS TO ADVISE YOU OF AN IMPORTANT MODIFICATION TO THE BORDER
CARGO SELECTIVITY (BCS) PROCESS ALONG THE NORTHERN BORDER. AS
YOU ARE AWARE, WE CURRENTLY REQUIRE ENTRY FILERS TO PROCESS 60
OF THEIR CF 3461ALT TRANSACTIONS THROUGH BCS. THE BROKER IS
PERMITTED TO ONLY CLASSIFY THE HIGHEST VALUE LINE ITEM IF THERE
ARE MULTIPLE CLASSIFICATIONS INVOLVED. WE ARE ALSO VERY LENIENT
CONCERNING THE REPORTING OF ULTIMATE CONSIGNEE INFORMATION,
PERMITTING THE RELEASE OF CARGO IN SITUATIONS WHERE THE "FOR THE
ACCOUNT OF" PARTY (MANY TIMES A FOREIGN SHIPPER) IS USED.

OUR CURRENT PLAN FOR COMPLETING THE IMPLEMENTATION OF BCS ALONG
THE NORTHERN BORDER IS AS FOLLOWS:

PHASE ONE

EFFECTIVE APRIL 1, 1995, ALL INVOICE LINE ITEMS WITH A VALUE OF
$1250 OR GREATER MUST BE CLASSIFIED AND REPORTED THROUGH BCS.
THE FOLLOWING EXAMPLES SHOULD CLARIFY THIS REQUIREMENT:

EXAMPLE: AN INVOICE HAS FIFTY LINE ITEMS, EACH VALUED OVER $1250.

REQUIRED: THAT THE BROKER PROVIDE A CLASSIFICATION(S) THAT COVER
ALL OF THE INVOICE LINE ITEMS. PLEASE NOTE THAT IT MAY BE THAT
ONLY ONE CLASSIFICATION (ONE BCS LINE ITEM) IS REQUIRED. THIS
COULD HAPPEN WHEN AN INVOICE BREAKS OUT A PARTICULAR COMMODITY BY
STYLE NUMBER. THE TARIFF CLASSIFICATION FOR EACH LINE ITEM MAY
BE THE SAME, EVEN THOUGH THE STYLE NUMBER IS DIFFERENT. THUS,
THE NUMBER OF INVOICE LINE ITEMS OVER $1250 WILL NOT ALWAYS MATCH
THE NUMBER OF BCS CLASSIFICATIONS PROVIDED.

EXAMPLE: AN INVOICE HAS TWENTY LINE ITEMS, EACH VALUED AT LESS
THAN $1250.

REQUIRED: THE BROKER MAY EFFECT CARGO RELEASE UNDER BREL
PROCEDURES. A BCS TRANSACTION IS NOT REQUIRED, BUT OF COURSE
ACCEPT THE TRANSACTION IF IT IS PRESENTED FOR BCS PROCESSING.
EXAMPLE: AN INVOICE HAS TWO LINE ITEMS, ONE VALUED AT $5,000 AND
THE OTHER VALUED AT $1,000.

REQUIRED: THE BROKER MUST CLASSIFY AND SUBMIT FOR BCS PROCESSING
THE INVOICE LINE ITEM VALUED AT $5,000, BECAUSE IT IS OVER THE
$1250 THRESHOLD. THE OTHER INVOICE LINE ITEM NEED NOT BE
CLASSIFIED BECAUSE IT IS UNDER $1250. OF COURSE, IF THE BROKER
DOES CLASSIFY BOTH LINE ITEMS, THAT SHOULD BE ACCEPTED AS WELL.

IT IS IMPERATIVE FOR OUR COMPLIANCE MEASUREMENT EFFORTS THAT ALL
LINE ITEMS VALUED AT $1,250.00 AND OVER BE CLASSIFIED BEGINNING
APRIL 1, EVEN IF THE CORRECT ULTIMATE CONSIGNEE NUMBER IS NOT
AVAILABLE.

AS OUR COMPLIANCE MEASUREMENT EFFORTS ARE CURRENTLY DRIVEN ON THE
CLASSIFICATION OF THE MERCHANDISE, AND NOT THE IDENTIFICATION OF
THE ULTIMATE CONSIGNEE, CUSTOMS AGREES TO BE LENIENT ON THIS
POINT UNTIL JULY 1, 1995. THE FOLLOWING GUIDELINES WILL APPLY TO
BCS TRANSACTIONS ALONG THE NORTHERN BORDER UNTIL JULY 1, 1995:

1) THE PREFERRED CHOICE FOR ULTIMATE CONSIGNEE NUMBER IS THE
INTERNAL REVENUE SERVICE (IRS) TAXPAYER IDENTIFICATION CODE OR
THE SOCIAL SECURITY NUMBER (SSN) OF THE US BUYER.

2) THE BROKER SHOULD QUERY THE AUTOMATED COMMERCIAL SYSTEM (ACS)
IMPORTER OF RECORD FILE IF THE SSN OR IRS NUMBER IS NOT
AVAILABLE, TO SEE IF A CUSTOMS RECORD EXISTS FOR THE CONSIGNEE.
IF A RECORD EXISTS, THE SSN OR ENCRYPTED IRS NUMBER SHOULD BE
USED.

3) IF THE ENTRY FILER CANNOT DETERMINE THE ULTIMATE CONSIGNEE
NUMBER AS DESCRIBED ABOVE, THEN THE "FOR THE ACCOUNT OF" NUMBER
MAY BE USED. IT IS RECOGNIZED THAT IN MANY INSTANCES, THIS
NUMBER WILL BE A CUSTOMS ASSIGNED IDENTIFICATION FOR A FOREIGN
SHIPPER.

4) IF ONE OF THE ABOVE MENTIONED SOLUTIONS IS NOT POSSIBLE, THE
ENTRY FILER MAY REPORT THE ULTIMATE CONSIGNEE NUMBER AS
00-000000000 (ALL ZEROES). THE USE OF THIS NUMBER AND THE "FOR
THE ACCOUNT OF" NUMBERS WILL NO LONGER BE ACCEPTABLE AFTER
JULY 1, 1995.

WE WILL ADVISE YOU WHEN THE ULTIMATE CONSIGNEE NAME/ADDRESS
MODULE IS AVAILABLE FOR USE. INSTRUCTIONS ON USING THE SYSTEM
WILL ACCOMPANY THAT ANNOUNCEMENT.

PHASE TWO

EFFECTIVE JULY 1, 1995, ALL ENTRIES PROCESSED THROUGH BCS MUST
USE THE ULTIMATE CONSIGNEE NUMBER DEFINED IN 142.3 OF THE
REGULATIONS. AS MENTIONED ABOVE, WE WILL FORWARD INSTRUCTIONS
FOR ULTIMATE CONSIGNEE REPORTING IN THE NEAR FUTURE.

PHASE THREE

TENTATIVELY, EFFECTIVE OCTOBER 1, 1995, ALL INVOICE LINE ITEMS
VALUED AT $200 OR GREATER MUST BE PROCESSED THROUGH BCS.

PLEASE NOTE THAT THE CBANUSB HAS AGREED TO PHASES ONE AND TWO.
WE WILL CONSULT WITH THE ASSOCIATION NO LATER THAN AUGUST 1, 1995
BEFORE GOING TO PHASE THREE.

QUESTIONS REGARDING THESE ISSUES SHOULD BE DIRECTED TO MS. ANGELA
DOWNEY (202) 927-1082, OR MS. MARIE COSME-RITTENBERG (202) 927-
0494.